How America Pays for College 2026
Sallie’s national study of college students and parents — a comprehensive annual look at how the typical American family funds higher education.
What the 2026 data tells us about how students and families pay for college
Families primarily depended on savings and income to cover college costs
- College families spent an average of $34,019 on college for the 2025-2026 academic year, up 10% from $30,837 last year
- College families contributed $16,624 out of pocket in 2025-2026, accounting for 49% of total college spending
- Grants and scholarships covered 27% of college spending, offering an average of $9,263 in financial support to college families
Borrowing made college possible for many families
- 47% of college families borrowed money to pay for college in the 2025-2026 academic year
- 38% of college families considered attending more expensive schools than they otherwise would have considered because of access to borrowed money
- 75% of college families would rather borrow to pay for college than have the student not be able to attend at all
Financial aid offices are a trusted information source for college families
- 50% of college families used the college’s financial aid office or financial aid counselor as a source of information for paying for college
- 21% of college families used the school’s financial aid office to help with the FAFSA®
- 81% of college families trust college’s financial aid office or financial aid counselor
How much did families spend on college during the 2025-2026 academic year?
During the 2025-2026 academic year (AY), undergraduate families spent an average of $34,019 on college, representing a 10% increase from $30,837 in AY 2024-2025. This amount includes not only tuition, room and board, and fees, but also other costs that students and parents associate with their education, like books and course materials, technology, food (both inside and outside meal plans), apartment or dorm costs, and other related costs.
Chart base: Parents and students
Spending varies significantly by school type: families with a student attending a 2-year public school paid an average of $21,388, compared to $31,886 for 4-year public school, and $47,032 for 4-year private school. Similarly, education spending varies by household income level: college families with an income of $150,000 or more spent an average of $42,200 on college expenses, those earning between $100,000 and $149,999 spent $35,505, families with an income of $50,000 to $99,999 spent $33,288, and those earning less than $50,000 spent $31,259.
Most families paid less than the full advertised price for college
Although college costs continue to be a significant financial investment for many, only 39% of college families said they paid the full advertised price. Half of families paid less than the listed price, while 9% were unsure. This varies by income: college families earning $150,000 or more are more likely to have paid the full advertised price (51%), compared to 35% of families earning under $50,000.
Chart base: Parents and students
Chart base: Parents and students
Families see their students’ college education and experience as worth the cost
Seven in 10 college families (71%) view their student’s college education as appropriately priced or even a bargain, with 29% saying it’s overpriced. This sentiment holds true beyond just academics: 72% of college families believe their student’s overall college experience—including facilities, campus life, housing, and meal plans—is appropriately priced or even a bargain, while 28% consider it overpriced.
How did families pay for college?
College families used a variety of funding sources to pay for college expenses for the 2025-2026 academic year. The largest share came from parent income and savings, which covered 39% of costs, or $13,087 on average. Scholarships covered 15% ($5,077), while grants made up 12% ($4,186). Student borrowing accounted for 11% ($3,793), and parent borrowing covered 11% ($3,734). Additionally, student income and savings covered 10% of total college funding, approximately $3,536, and gifts from friends or family added another 2%, or $604.
Chart base: Parents and students
The share of families using each funding source remains steady since AY 2024-2025
- 73% draw from parent income and savings
- 61% benefit from scholarships
- 59% benefit from grants
- 56% use student income and savings
- 29% rely on student borrowing
- 22% rely on parent borrowing
- 13% receive support from friends and relatives
Chart base: Parents and students
Chart base: Students and parents of students working towards Bachelor’s degree
Most families created a plan to pay for all years of college
Prior to enrollment, 58% of college families created a plan to cover the costs for all years of college, and 84% expressed confidence that their student would earn a Bachelor’s degree within four years. However, this optimism highlights a clear gap, as only 61% of students complete their Bachelor’s degree within six years.footnote 1 Graduation outcomes are shaped by a variety of factors, including financial barriers, academic hurdles, and changing life circumstances that can impact students' path to graduation.footnote 2 Among families who lack complete confidence in a 4-year graduation timeline, just 42% have had conversations about managing the financial implications of extended enrollment, a topic that is underdiscussed given actual graduation rates.
Trusted sources are most often used for college payment information
College financial aid offices or counselors are the most used and trusted source of information for paying for college, followed closely behind by the federal or state government, friends or family members, and high school counselors. While AI tools are a growing source of information, with 18% of families using it, it remains among the least trusted options with 43% of students and parents rating AI as very or somewhat trustworthy. There are also differences by family role: parents are more likely to have used formal sources like financial aid offices and government sources, while students leaned more on family, friends, and social media.
Chart base: Parents and students
How much did scholarships really help families with college costs?
Scholarships significantly impacted how most college families managed college expenses. In the 2025-2026 academic year, 61% of students received a scholarship, with an average award of $8,291. Scholarships covered 15% of reported college spending for the 2025-2026 academic year. Among scholarship users, 59% reported receiving a scholarship from their college, 35% from the state or local government, and 33% from a community organization, nonprofit, or company.
Scholarship searches are often a family effort
When it came to the scholarship process, students took the lead in researching and applying for scholarships in 42% of college households. In 34% of college families, responsibilities were shared between students and parents, while in 24% of cases, parents handled the entire process themselves. Throughout this process, high schools and colleges played a crucial role by providing families with information about available scholarships and motivating students to take that important first step.
Chart base: Families in which the student did apply for scholarships
Chart base: Parents and students
Misconceptions discourage families from accessing scholarships
While scholarships are a source of pride for 87% of college families and have enabled 76% of students to attend college, misconceptions persist and discourage families from applying:
- 48% think scholarships are reserved for those with exceptional grades or abilities
- 41% believe students can only apply for scholarships before their freshman year
- 35% feel it’s not worth applying if parents earn too much money
Remarkably, three out of four college students who did not use a scholarship simply never applied.
What percent of families completed the FAFSA®?
74% of college families completed the FAFSA® for the 2025-2026 academic year, returning to submission levels observed two years ago and up 3pp from last year. Most families found the FAFSA® process easy (81%), which represents an improvement from 72% in 2025.
Most families needed help completing the FAFSA®
Although most families who completed the FAFSA® found the process easy, 56% still needed help with the application, most often relying on friends or family (22%), the school’s financial aid office (21%), or the FAFSA® Help Page (17%). Students were more likely to report needing help with the FAFSA® (62%) compared to parents (49%).
Chart base: Parents and students who submitted or filled out the FAFSA® for this and next academic year
Chart base: Parents and students who did not complete FAFSA®
A knowledge gap hindered access to federal financial aid
Among the 26% of college families who did not submit the FAFSA®, the primary reasons for skipping it included believing their family income was too high (26%), down 8pp from 34% in 2025, not knowing about the FAFSA® (19%), up 7pp from 12% in 2025, or thinking they didn’t qualify for non-financial reasons (16%). Additionally, awareness about the FAFSA® opening date remains low. Only 25% of families know that the FAFSA® opens in October.
Financial aid expectations were largely fulfilled
When it comes to the financial aid received, 57% of college families got the amount they expected, 19% received less, 7% received more, and 17% had no expectations. College families with an income of $150,000 or more were less likely to report receiving what they expected (46%), compared to families with an income under $50,000 (63%).
Chart base: Parents and students who submitted the FAFSA® for 2025-2026 academic year
How many families borrowed to pay for college?
47% of college families borrowed money to pay for college for the 2025-2026 academic year. Borrowing rates vary by school type: 38% of college families with a student attending a 2-year public school borrowed, compared to 55% for a 4-year private school.
For nearly 7 in 10 borrowing families (68%), borrowing was a planned part of the college financing strategy. Borrowing expanded college options for many students, with 38% considering schools they otherwise may not have afforded.
Financial topics, including borrowing, remain underdiscussed among families
Despite the importance of planning and family communication, fewer than half of students and parents have discussed the following financial topics:
- What all years of college will cost (44%)
- The starting salary for jobs in the student’s field of study (38%)
- Payment options that do not need to be paid back (37%)
Chart base: Parents and students
Chart base: Parents and students in families where parent/student borrowed from any source
Students are expected to help pay back both student and parent loans
Most families expect students to help repay the education loans used to fund their schooling. Nearly all borrowing families (97%) expect students to contribute to repaying their own student loans, and nearly two-thirds (64%) expect them to help repay loans borrowed by their parents.
Two-thirds of families support federal loan limits
58% of college families believe the price of college has increased, at least in part, because students can borrow as much as colleges charge through federal loan programs. Additionally, 2 in 3 (66%) support setting limits on the amount of federal student loan debt borrowers can take on.
Given these views, nearly all students and parents (99%) expect schools to play an active role in addressing the impact of new borrowing limits. The most selected steps include lowering tuition and fees (53%), offering more scholarships (38%), and offering more generous financial aid (36%).
Chart base: Parents and students
What factors matter most when choosing a college and who decides?
Cost, location, and the academic program remain the key drivers of college choice. More specifically, the top factors college families used to choose what school to attend were the price (40%), proximity to home (39%), whether the school was in-state (39%), and the academic program or degree offered (38%). Other important considerations included the scholarships or financial aid received from the school (36%) and the campus environment (33%).
Chart base: Parents and students
Ultimately, school choice is a highly personal decision, with no single factor dominating. Families were nearly equally split between financial (35%) and academic (36%) considerations as the final deciding factor, while 27% cited personal factors such as location or social life at the school.
Cost consistently plays a role throughout the decision-making process
College families used cost to narrow down choices at every stage:
- Before researching colleges (58%)
- Before applying (60%)
- After admissions but before reviewing financial aid offers (53%)
- After seeing the financial aid offers (63%)
In all, 79% of families eliminated a school from consideration based on cost alone. Families who borrowed money to help pay for school were more likely to have eliminated a school based on cost at each of the above steps in the college application process.
Chart base: Parents and students
Chart base: Parents and students
The final decision-maker shifts between school choice and how to pay
In most families (66%), students made the final decision about which school to attend, while in 29% of families, it was a joint decision with their parents. However, when it comes to making decisions about how to pay for college, responsibility is more evenly divided: 39% of college families made these decisions together, 35% left it to the student, and 26% to the parent. Regardless of who the final decision-maker was, most families felt confident they made the right choice regarding the student’s current school (89%) and how to pay for school (84%).
How do families feel about higher education and what drives that perception?
College families see higher education as a worthy investment
- 91% believe higher education is an investment in the student’s future
- 88% say earning a college degree will provide opportunities that wouldn’t otherwise be available
Strong motivations and beliefs underpin college families’ views on higher education
- 82% of families want their student to attend college so they can earn higher incomes
- 69% believe a college degree is essential for career success today
College families’ commitment to higher education is evident
- 80% are willing to stretch financially to secure the best opportunities for the student
- 75% would rather borrow to pay for college than have their child miss the chance to attend
About the research
Sallie’s How America Pays for College 2026 research report is based on an online survey of 1,000 undergraduate college students and 1,000 parents of undergraduates. The study was conducted between April 22 and May 26, 2026, in partnership with Ipsos, a global data and insights company. The survey responses were weighted to properly represent American undergraduate families as reflected in the 2023 Current Population Survey (CPS).
The 19th edition provides an in-depth look at how college families manage the costs of higher education and the strategies they use to pay for it. The report covers the roles of family contributions, scholarships, financial aid, and borrowing in funding a college education. It also dives into FAFSA® completion and barriers, examines how families make decisions about college enrollment and financing, and their perspectives on higher education. Additionally, the study explores where families get their information, which sources they trust, and highlights how this year’s findings compare to those of the previous year.
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