Multiple reports show that as more and more colleges have tuition exceeding $100,000 per year, nearly 70% of American families are planning to take out loans to send their children to university.
According to the latest report “How America Pays for College” released by Sallie Mae, in the 2025-2026 academic year, almost half of American families are using loans to cover university costs, with 68% of respondents stating that loans have always been part of their tuition payment plans. The survey was conducted in April and May, with the participation of 1,000 parents of undergraduate students aged 18 to 24, and 1,000 undergraduate students.
The education loan institution found that in most cases, parents’ income and savings can only cover less than half of the college expenses. Scholarships and grants make up more than a quarter of the total costs, with the remaining expenses relying on student loans.
The report also revealed that interestingly, two-thirds (66%) of the surveyed families support limiting federal student loans.
Rick Castellano, a spokesperson for Sallie Mae, stated that they will continue to observe whether the decision-making process for students and families regarding college choices will change in the coming year.
Despite the increasing burden of debt, the proportion of family loans remains relatively stable. Castellano cautioned families against borrowing excessively, emphasizing that all money borrowed will ultimately need to be repaid.
In a recent joint survey conducted by the Lumina Foundation and Gallup, only 12% of surveyed Americans believe that a four-year college education is affordable.
The survey, conducted from June 1 to 15, targeted 14,000 adults without degrees or currently pursuing degrees, nearly 6,000 college graduates, and 2,000 employers. The research report by the Lumina Foundation and Gallup noted that tuition fees pose a significant barrier to potential students’ enrollment.
Due to many families struggling to afford high tuition fees, they are increasingly relying on federal and private funding to cover these expenses.
An independent study conducted by private student loan company College Ave revealed that savings are increasingly playing a smaller role in education expenses, forcing families to depend on a wider range of funding sources to pay for university costs. Apart from savings, students are working part-time, applying for federal and private student loans, and even resorting to credit card loans. College Ave surveyed 1,000 parents with college students attending four-year institutions in June.
Survey data indicated that by 2026, parents saving for their children’s college education had an average savings of $37,897, a significant decrease from $51,310 in 2025.
As a result, only 16% of families stated that they had the ability to pay for the entire college tuition through savings, a drop from 27% a year earlier.
According to data from the College Board, tuition fees historically increase by about 3% annually, but from 2008 to 2018, tuition and fees at private four-year colleges surged by 26%. Public four-year institutions faced an even larger impact with a 35% increase during the same period.
Tuition fees are rising at a much faster pace than any other household expenditure. A report released in 2026 by J.P. Morgan Asset Management revealed that as of the end of 2025, with schools increasing investments in faculty recruitment, infrastructure development, and enrollment, tuition fees are rising by about 5.5% annually, surpassing inflation and wage growth rates.
Analysis by the nonpartisan research organization Center on Budget and Policy Priorities based in Washington, D.C., shows that currently half of the school’s income comes from tuition, with the remaining half provided by state and local governments. This is a stark contrast to the past when tuition fees accounted for only about a quarter of the school’s income, with the rest covered by state and local governments.
Castellano suggested that with the current rate of tuition fee growth, more students and families may begin to compare tuition costs with the return on investment of obtaining a degree.
“After all, this is a substantial expense, and everyone wants to receive the greatest return,” he said.