NEWARK, DE — American families spent an average of $34,019 on college during the 2025-26 academic year, a 10.3% increase from the previous year, as nearly half borrowed money and most eliminated at least one school because of cost, according to a national study by Sallie and Ipsos.
The average annual expense rose by $3,182 from $30,837 during the preceding academic year. Despite the increase, 52% of families reported paying less than their school’s advertised price.
Family income and savings covered 49% of college expenses, while scholarships and grants accounted for 27%. Student and parent borrowing supplied 22%, with gifts or contributions from relatives and friends covering the remaining 2%.
Overall, 47% of families borrowed to help pay for college. Among those borrowers, 68% reported that loans had always been part of their financing plans, while 38% indicated borrowing allowed them to consider a more expensive school.
“While household budgets may be feeling some pressure, families are still choosing to invest in higher education,” Ipsos Senior Research Manager Dan O’Leary stated.
Nearly eight in 10 families, or 79%, ruled out at least one college because of cost. Price influenced school selection for 40% of families, followed by proximity to home at 39% and academics at 38%.
Despite the financial pressures, 91% viewed higher education as a worthwhile investment, and 84% expressed confidence in their decisions about financing it.
Another 89% expressed confidence in their choice of school, while 66% of students identified themselves as the primary decision-maker in selecting where to enroll.
Only 58% of families developed a plan covering the full cost of all college years before enrollment.
The survey also found broad support for federal borrowing restrictions, with 66% of families favoring limits on federal student loans. Another 58% agreed that unlimited federal lending has contributed to rising college costs.
Among parents, 13% reported concern about navigating new federal student loan limits.
Completion of the Free Application for Federal Student Aid increased to 74% from 71% a year earlier. Among families who completed the application, 81% described the process as easy, up from 72%.
However, only 25% knew the FAFSA opens in October, a knowledge gap that could cause eligible families to miss financial aid awarded on a first-come, first-served basis.
Scholarships helped finance college for 61% of families. Among those who did not use scholarships, 74% had not applied.
Misunderstandings about eligibility were common: 48% believed scholarships were available only to students with exceptional grades or abilities, while 41% believed they were limited to incoming freshmen.
“Talking early and often about the full cost of a degree, career paths, and life after graduation can help families compare options, avoid missing out on aid and scholarships, and ultimately choose a path that fits their goals and budget,” stated Rick Castellano, vice president at Sallie.
Ipsos surveyed 1,000 undergraduate students and 1,000 parents of undergraduate students online between April 22 and May 26, 2026.
Additional information and resources covering financial aid applications, scholarships and student loans are available at SallieMae.com.
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