Despite mounting questions about value and escalating costs, most families with high school students still expect their children to attend college — and many are already reshaping how they plan to pay for it. New polling and recent policy shifts are forcing families to weigh trade-offs between tuition, aid and borrowing more closely than before.
College remains the expectation, but confidence is strained
A recent Sallie Mae survey finds that roughly 95% of households with high schoolers anticipate their children will pursue higher education after graduation. At the same time, the same research shows growing skepticism about whether the sticker price will deliver commensurate lifetime gains.
About 82% of families who are considering two- or four-year programs still believe college is worth the cost, with most citing improved job prospects, occupational skills and higher earnings as the motivating factors. The survey polled more than 2,000 adults and teens in January.
What determines whether college pays off
Multiple studies point to the same calculus: financial aid levels, out-of-pocket costs, choice of major, time-to-degree and expected earnings all shape whether a degree is a sound investment. A 2025 analysis from the Federal Reserve Bank of New York highlighted how these variables interact to influence long-term outcomes for students.
Complicating the picture, tuition has frequently risen faster than grant aid in recent years, shifting a larger share of college costs onto students and families.
How families make the numbers add up
Sallie Mae’s companion report on how families pay for school shows a mixed funding model: personal income and savings shoulder a significant portion, scholarships and grants cover a chunk, and loans fill in the remainder. Patterns vary widely by household.
- Family income and savings: Typically cover about half of college expenses.
- Scholarships and grants: Provide more than a quarter of funding on average.
- Student and parent loans: Make up most of what’s left.
Six in ten families report having education savings, with an average balance near $42,307. Despite clear tax benefits, only about 39% of families use 529 plans; Sallie Mae officials say limited awareness and understanding help explain the low uptake.
Overall, roughly half of families still expect to rely on borrowing to cover at least some college costs.
The student loan landscape is changing
Families and advisors are confronting two concurrent shifts: rising reliance on private borrowing and recent federal changes that alter access to certain loan types. A NerdWallet analysis of National Center for Education Statistics data estimates that students who borrow on the path to a bachelor’s degree could face around $43,000 in total education debt on average.
Financial aid specialists warn that limits on federal loan availability, enacted in recent policy updates, mean families may not be able to depend on federal loans as a safety net in the coming years. Kalman Chany, a financial-aid consultant, says parents and students should expect federal support to be more constrained and plan accordingly.
When federal options are exhausted, private loans are an alternative, but they often come with higher rates and stricter credit requirements. Financial aid advisers urge prudent borrowing and recommend taking only what is necessary to cover education costs.
Practical choices families are making now
Faced with higher costs and tighter federal rules, families are pursuing several different strategies: prioritizing community colleges or certificate programs, leaning on scholarships earlier in the process, shifting savings into education accounts, and considering work-study or part-time enrollment to limit debt growth.
- Start with community college or transfer plans to reduce tuition outlays.
- Apply widely for scholarships and grant opportunities before borrowing.
- Compare total cost of attendance by major and graduation timelines.
- Use education-specific savings vehicles when possible and review tax benefits.
These practical adjustments reflect a broader reassessment: families still value higher education’s benefits, but they are increasingly tactical about how to secure them.
With tuition trends, evolving federal rules and private lending costs all in flux, households navigating college planning in the coming year will need to balance short-term affordability with longer-term career prospects — and be prepared to adjust as policy and market conditions change.
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Jordan Keller specializes in analyzing the US financial markets. With concrete recommendations, he helps you secure and boost your investments by providing strategies that adapt to market fluctuations.