College Costs Are Rising: Here’s What the Average Family Pays
College expenses are rising faster than inflation, according to a new report drawn from surveys of students and parents.
The typical student’s family spent $34,019 on college in the 2025-26 academic year, according to the report How America Pays for College 2026. That’s a 10% increase from the average family’s college spending a year earlier, $30,837.
The new report, from the higher education firm Sallie Mae and the market research company Ipsos, draws from surveys of 1,000 undergraduate students and 1,000 parents conducted this spring. The findings add to a confusing and sometimes contradictory dossier of data on college affordability.
College Costs Continue to Climb
Average tuition and fees rose 4% to $45,000 at private, nonprofit colleges in 2025-26, according to the College Board. Average costs rose 2.9% to $11,950 for in-state students at public four-year colleges.
And costs continue to rise. Fifteen colleges will charge more than $100,000 in published tuition, fees and living expenses in fall 2026, according to The Princeton Review.
“The fact that we’re now seeing colleges cross the $100,000 threshold is a pretty telling indicator of just how dramatically the cost of college has risen,” said Rob Franek, editor in chief of The Princeton Review. “And students and families are feeling it.”
But most students don’t pay sticker price. After grants, discounts and other aid, the net cost of college attendance is much lower. And after inflation, the College Board reports, college costs have remained relatively flat over the past two decades.
Is College Worth the Price?
The new report finds families paying more for college in 2026 but largely satisfied that they are getting a fair deal.
Roughly half of families said they paid less than sticker price. More than 70% said they felt the student’s education and overall experience was appropriately priced, “or even a bargain,” the report said.
“The majority of families continue to believe that college is a valuable investment,” said Rick Castellano, vice president of corporate communications at Sallie Mae.
Many students dream of attending the most prestigious college that admits them, no matter the cost. In the end, though, most families prioritize price and proximity over pedigree.
“There are a good number of families who at one point in the process are going to eliminate a school based on cost,” Castellano said.
What Families Consider When Choosing a School
Here are the top 10 reasons cited by students and parents for selecting the college they chose to attend. Respondents could choose more than one.
- Affordability, 40%
- Near home, 39%
- In-state school, 39%
- Specific program or degree, 38%
- Scholarships and other aid, 36%
- Campus environment, 33%
- Friends at the same college, 22%
- Social life, 20%
- Online or hybrid classes, 16%
- Prestige, 13%
Student Loan Caps and College Debt
Nearly half of families surveyed reported borrowing money to finance college.
Student debt has been rising nationwide, and both colleges and policymakers have looked for ways to stem the increase.
Outstanding federal student debt more than doubled between 2007 and 2020, after inflation, rising from $0.8 trillion to $1.9 trillion. Debt trended downward between 2020 and 2025, declining from $1.9 trillion to $1.7 trillion in inflation-adjusted dollars, the College Board reports.
The average balance of outstanding loans rose from $28,300 in 2007 to $45,100 in 2020, in inflation-adjusted dollars, then dwindled to $39,100 in 2025.
Student loan debt has eased in recent years because undergraduate students are borrowing less, in inflation-adjusted terms, said Jennifer Ma, executive director of policy research at the College Board. Students are borrowing less because of longstanding caps on federal student loans for undergraduates, limits that haven’t risen in many years. Colleges, in turn, are dispensing more grant aid.
The Trump administration has capped what it calls “excessive” student borrowing on graduate programs for many students. The policy goal is to compel colleges to curb tuition, although critics warn the caps might send borrowers to the private loan market.
In the Sallie Mae and Ipsos report, two-thirds of families said they support limits on federal student borrowing. More than half said they believe unlimited student lending has fed rising college costs.
In The Princeton Review’s 2026 College Hopes & Worries Survey, students and parents cited “sticker shock” as the top source of stress in applying to college. They said their biggest worry was taking on debt to pay for education, cited by 35% of respondents.
“When we first asked that question, 23 years ago, just 6% cited debt as their biggest worry,” Franek said. “That rise from 6% to 35% tells us just how central affordability has become to the college conversation.”
