Rising College Costs in the U.S.

According to a report released by Sallie Mae/Ipsos, higher education expenses in the United States have surged significantly over the past year.

Families are projected to spend around $34,019 on overall college costs for the 2025-26 academic year, which marks a 10% increase compared to the previous year. Interestingly, families are covering nearly 49% of these expenses out of their own pockets. Higher Ed Dive has further explored this topic.

A representative from Sallie Mae shared with the Daily Caller News Foundation that the increase in college spending doesn’t solely stem from tuition hikes. The $34,019 total for the 2025-26 year encompasses all expenses tied to higher education—including tuition, fees, books, technology, meals, housing, travel, and other related costs.

The survey also indicates that cost plays a crucial role in students’ college selection process. A substantial 79% of the families that participated in the survey eliminated colleges from consideration at various points due to costs involved.

“Families indicate they are spending more on higher education. Eight out of ten express confidence in their ability to finance it, though it might stretch their budgets,” remarked Sallie Mae spokesperson Rick Castellano. Yet, more than half (52%) stated they pay less than the full, advertised tuition price. On the flip side, misunderstandings surrounding scholarships and FAFSA might lead some families to overlook opportunities for reducing college expenses.

This report comes amid recent surveys suggesting that many Americans feel U.S. universities are inadequately preparing students for employment, thus making higher education less attainable.

Senator Tim Scott from South Carolina expressed concerns on June 12, 2025, tweeting that the higher education system is flawed. He emphasized that while costs are rising, the value of degrees seems to be diminishing.

Several factors are believed to contribute to the hikes in college pricing, including expanded administrative roles, higher staffing numbers, increased non-educational expenditures, campus facility expansions, and a burgeoning demand for higher education, as noted by the American College of Education.

Founded as SLM Corporation, Sallie Mae serves as the largest private student loan lender in the U.S. An online survey conducted by Ipsos from late April to late May engaged 1,000 undergraduate students aged 18 to 24, as well as 1,000 parents of traditional-age students.