“How America Pays for College 2026” Finds Overwhelming Majority of Families Continue to View College as a Valuable Investment and More Than 8 in 10 Are Confident in How They Paid for It

Families Reported Spending More on Higher Education Last Year Relying on a Mix of Income and Savings, Scholarships and Grants, and Borrowing

Nearly Six in 10 Families Say They Have a Plan to Pay for All Years of College; Misconceptions Around Scholarships and the FAFSA Lead to Missed Opportunities to Make Higher Education More Affordable

NEWARK, Del.--(BUSINESS WIRE)--Nine in 10 families (91%) view higher education as a valuable investment and 84% are confident they made the right financial decisions to pay for it, according to “How America Pays for College 2026,” the annual national study by Sallie and Ipsos.

How Do Families Pay for College?
Families reported spending an average of $34,019 on college during the 2025-26 academic year, up from $30,837 the prior year. Most families (52%), however, said they paid less than the full advertised sticker price for school. Family income and savings covered nearly half of costs (49%), followed by scholarships and grants (27%), parent and student borrowing (22%), and contributions or gifts from family or friends (2%).

“While household budgets may be feeling some pressure, families are still choosing to invest in higher education,” said Dan O’Leary, Senior Research Manager, Ipsos. “They continue to see college as worth the cost and remain confident in how they are paying for it, even if that means stretching financially to make ends meet.”

How Do Families Plan for College and Choose Where to Attend?
Nearly nine in 10 families (89%) reported confidence in their school choice, with two-thirds of students (66%) confirming they were the primary decision-maker on where to attend. Fifty-eight percent of families created a plan to pay for all years of college before enrolling. Families prioritized price (40%), proximity to home (39%), and academics (38%) nearly equally when choosing a school. Nearly eight in 10 families (79%) said they eliminated a school based on cost during their decision-making process.

How Many Families Borrow for College?
Slightly less than half of families (47%) reported borrowing to pay for college, with 68% of borrowers saying it was always part of their paying-for-college plan. Nearly four in 10 families who paid for college with borrowed money (38%) said it enabled them to consider a higher-cost school. Regarding recent changes to federal student loan programs, two-thirds of families (66%) support limits on federal student borrowing, and 58% believe unlimited federal lending has contributed to rising college costs. Among parents, just 13% said they were concerned about navigating new limits on federal student loans.

Are Families Completing the FAFSA and Applying for Scholarships?
Roughly three-quarters of families (74%) reported completing the Free Application for Federal Student Aid (FAFSA®) up from 71% last year, and 81% of families who filled out the FAFSA found the process easy, representing an improvement from 72% last year. Just 25% of families, however, know the FAFSA® opens in October, which could result in those with demonstrated need missing out on first-come, first-served aid. Six in 10 families (61%) used scholarships to pay for school. Among those who didn’t, nearly three out of four (74%) did not apply at all. Nearly half of families (48%) believe scholarships are only available for students with exceptional grades or abilities, and 41% think scholarships are only available for incoming freshmen.

“Families are planning ahead and continue to value college, but the most informed decisions start with outcomes in mind,” said Rick Castellano, Vice President, Sallie. “Talking early and often about the full cost of a degree, career paths, and life after graduation can help families compare options, avoid missing out on aid and scholarships, and ultimately choose a path that fits their goals and budget.”

Explore the full report and discover insights, trends, and free paying-for-college resources from Sallie. Sallie represents the broader brand that brings Sallie Mae financial products together with a growing set of resources to support students and families at every step, from planning and saving to paying for school, including Sallie’s free FAFSA® Guide, Scholarship Guide, and Student Loan Guide.

"How America Pays for College 2026" reports the results of Ipsos' online interviews of 1,000 undergraduate students and 1,000 parents of undergraduate students conducted between April 22, 2026, and May 26, 2026.

Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.

Ipsos is a global independent market research company ranking third worldwide among research firms. At Ipsos, we are passionately curious about people, markets, brands, and society. We make our changing world easier and faster to navigate and inspire clients to make smarter decisions. We deliver research with security, speed, simplicity, and substance. We believe it’s time to change the game — it’s time for Game Changers! Visit https://www.ipsos.com/en-us to learn more.

Category: Consumer and Advocacy