NEWARK, DE — Sallie Mae reported that most U.S. families continue to view higher education as a worthwhile financial investment despite rising costs, with nearly three-quarters indicating they would rather borrow money than abandon college plans altogether.
The findings come from the company’s “How America Plans for College 2026” study, conducted with Ipsos, which surveyed more than 2,000 U.S. high school students and parents.
According to the study, 95% of high school students plan to pursue education after graduation, while 90% of families considering higher education view it as an investment in the student’s future. Another 82% said college remains worth the cost.
The report found 83% of families are willing to stretch financially for preferred educational opportunities, while 73% said they would choose borrowing over not attending college. At the same time, 68% supported limits on how much federal student loan debt borrowers can accumulate.
The study also showed an increase in financial planning activity compared with 2020. About 64% of families said they now have a plan to pay for higher education, up from 54% six years earlier.
Families reported average college savings of $42,307, compared with $26,266 in 2020, though the increase was driven largely by higher-income households. General savings accounts remained more common than 529 college savings plans, with 53% relying on traditional savings accounts versus 39% using tax-advantaged education accounts.
Researchers also identified continuing knowledge gaps around college financing and post-graduation outcomes.
Only 37% of respondents understood that families often pay less than published college tuition prices, while just 22% knew when student loan interest typically begins accruing. Nearly half of respondents incorrectly believed scholarships are reserved primarily for students with exceptional academic performance.
The survey also found many families are not discussing long-term financial outcomes tied to higher education decisions. Just 38% reported conversations about expected salaries in a student’s intended field, while only 28% discussed career placement rates or potential earnings relative to education costs.
Dan O’Leary stated the findings suggest families are becoming more engaged in preparing for higher education but are not always translating that preparation into fully informed financial decisions.
Rick Castellano indicated families are planning and saving earlier but may benefit from more direct conversations about the long-term financial return of higher education investments.
Additional information about the study is available at Sallie Mae.
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