How Much Are Families Spending on College in 2026?

Millions of college students are heading back to school, some of them entering college for the first time. Somewhere in the middle of preparing dorm rooms and getting meal plans situated, students and their families are figuring out how to pay for another year of education. According to multiple recent reports, college costs increased by approximately 10% for the 2025-2026 school year, as families spent an average of $34,019. That figure is expected to rise even more as the new academic year gets underway.

The figure includes more than tuition. It encompasses the broader cost of attending college, including fees, housing, meals, books, technology, travel and other education-related expenses. A Sallie Mae spokesperson emphasized that the increase "is not necessarily a function of higher tuition alone."

So how do families pay for college? The answer is a combination of savings, loans, scholarships, grants, and help from relatives. With college tuition costs at the forefront of the news once again, many experts wonder how long rising college costs will be sustainable.

The Typical Family Isn't Paying the Sticker Price

The $34,019 figure becomes even more alarming when compared to a college’s advertised cost of attendance. However, there’s an important difference between advertised college costs in 2026 and what families actually pay. According to the 2026 Sallie Mae and Ipsos study, 52% of families said they paid less than the full advertised sticker price. Financial aid, scholarships, and other forms of assistance can substantially change the final amount a family has to cover.

That’s why experts agree that it’s important to look beyond the advertised price. Two schools with similar sticker prices can produce drastically different costs for students and their families after scholarships and financial aid are factored in. For families trying to make a decision, the relevant number is ultimately the net price, which refers to the price that remains after grants, scholarships, and other assistance are deducted.

Family Income and Savings Still Cover the Biggest Share

Despite the rising costs of attending college, families are not relying on loans to pay the bulk of the bill. Instead, the largest source of funding comes from family income and savings. For the 2025-2026 school year, family savings and income covered 49% of college costs. Scholarships and grants accounted for another 27%, while parent and student borrowing covered 22%. Contributions or gifts from relatives and friends made up the remaining 2%.

The recent Sallie Mae study indicates that families are piecing together funding instead of getting the money from a single source. Most experts agree that this is because of the soaring costs associated with student loan borrowing.

For an average $34,019 annual expense, that 49% share would amount to roughly $16,700 from family income and savings. Scholarships and grants would represent about $9,200, while borrowing would account for roughly $7,500.

FAFSA Participation Has Improved, But Knowledge Gaps Remain

The Free Application for Federal Student Aid remains one of the most important tools for families trying to manage college tuition costs. About 74% of families reported completing the FAFSA, up from 71% the previous year. Among families that completed it, 81% said the process was easy, compared with 72% the year before.

Unfortunately, there appears to be a knowledge gap about the FAFSA and how it works. According to the study, only 25% of families knew that the FAFSA opens in October. That matters because some forms of financial aid can be limited, making timing an important part of the process. A family that waits too long may miss opportunities even if it ultimately qualifies for assistance.

According to Rick Castellano, a Vice President at Sallie Mae, "Talking early and often about the full cost of a degree, career paths, and life after graduation can help families compare options, avoid missing aid opportunities, and choose a path that fits their budgets.”

Families Still Believe College Is Worth the Cost

While the survey paints a mixed picture of college education and the costs associated with it, most families still believe that it’s worth the price that they pay, however they choose to pay it. 91% of families said they view higher education as a valuable investment, while 84% said they were confident they made the right financial decisions to pay for it.

Those figures don’t mean that families are comfortable with the price, but it does mean that they do believe that the potential benefits of a college education outweigh the financial sacrifices that they make.

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