American families are spending more on college than they have in recent years, even as concerns about affordability continue to influence where students enroll and how families plan.
Now in its 18th year, the annual report is based on surveys of 1,000 undergraduate students ages 18 to 24 and 1,000 parents nationwide. The findings provide a detailed look at how families pay for college, the tradeoffs they make and where gaps in financial aid awareness persist.
Despite rising costs, most families surveyed said they continue to view higher education as a worthwhile investment. Many reported a willingness to stretch financially to help students attend schools they believe offer the best long-term opportunities. At the same time, affordability increasingly shapes planning and school choice.
Rather than relying on a single source of funding, families typically use a combination of resources. The report found that income and savings covered the largest share of college costs, at 48%, followed by scholarships and grants at 27% and borrowing at 23%. The remaining expenses were covered by extended family members, friends or other sources.
Scholarships and grants remain a critical factor in reducing out-of-pocket costs, but misconceptions about eligibility continue to limit participation. About 60% of families reported using scholarships, with an average award of $8,004. Among those who received scholarship funding, 75% said it made college possible.
Still, many families never apply.
“Too many families miss out because they don’t know where to start or assume scholarships aren’t meant for them,” said Caron Jackson, a Sallie Mae representative. “That’s not true. There’s a scholarship for every interest and every kind of student.”
Most scholarships cited in the survey came directly from colleges and universities, followed by state or local governments and community-based organizations, underscoring the availability of aid beyond national merit programs.
Borrowing continues to play a significant role in college financing, though families appear increasingly cautious about taking on debt. Nearly 80% of families said they eliminated at least one college from consideration because of cost, highlighting how price and perceived return on investment now influence enrollment decisions.
Access to federal financial aid remains another challenge. Roughly 30% of families did not submit the Free Application for Federal Student Aid, or FAFSA, despite recent efforts to simplify the process.
“It’s important to file the FAFSA every year,” Jackson said. “It’s not just a form. It’s the gateway to billions of dollars in federal financial aid and grants.”
Among families who skipped the application, confusion about eligibility and the process itself was the most commonly cited reason. Even among those who completed the FAFSA, more than half reported needing help navigating it. Because FAFSA completion is often required for state and institutional aid, missed applications can have cascading financial consequences.
Knowing the process is a barrier, Sallie Mae has created resources to help families navigate the form.
“We have a free resource so families don’t have to do it alone,” Jackson said.
Planning also emerged as a differentiating factor. About six in 10 families reported creating a plan to pay for all four years of college. However, conversations about post-college outcomes were less common, a gap the report suggests could limit informed decision-making.
“The key is helping families look at the right things,” Jackson said. “Starting with outcomes in mind — the real cost instead of the sticker price, graduation rates and what a first job might look like. When families have that information, they feel much more confident planning for all four years.”
Taken together, the findings show families remain committed to higher education while navigating an increasingly complex affordability landscape. Rising costs, persistent misinformation about financial aid and ongoing challenges with federal processes continue to shape how students access college and how much they ultimately pay.
For families, proactive planning, early scholarship searches and consistent use of financial aid tools remain among the most effective ways to manage costs and limit unnecessary debt.
