08/25/2026
Just the Facts: Sallie and Ipsos’s How America Pays for College 2026 examines how undergraduate students and families are financing higher education.
Based on online interviews with 1,000 undergraduate students and 1,000 parents of undergraduate students, the report shows a familiar tension. Families continue to see higher education as valuable, but cost is shaping where students apply, where they enroll, and how families assemble the funds to pay. Additional insights include:
🔶 Families reported spending an average of $34,019 on college during the 2025-26 academic year, up from $30,837 the previous year. At the same time, 52% of families said they paid less than the full advertised sticker price.
🔶 Families are using a mix of resources to cover costs. Income and savings covered 49% of college costs, followed by scholarships and grants at 27%, parent and student borrowing at 22%, and contributions or gifts from family and friends at 2%.
🔶 College value remains strong in family decision-making. Ninety-one percent of families view higher education as a valuable investment, 84% are confident they made the right financial decisions to pay for it, and 89% reported confidence in their school choice.
🔶 Cost is still narrowing the choice set. Nearly eight in 10 families, 79%, said they eliminated a school based on cost during the decision-making process. Families weighed price, proximity to home, and academics almost evenly when choosing a school.
🔶 Planning and aid awareness remain uneven. Fifty-eight percent of families created a plan to pay for all years of college before enrolling. While 74% completed the FAFSA and 81% of those families found the process easy, only 25% knew the FAFSA opens in October. Among families who did not use scholarships, nearly three out of four did not apply at all.
The data points to a practical enrollment challenge. Families are not walking away from the idea of college, but they are making sharper financial decisions earlier in the process.