Rising tuition costs have made higher education increasingly unattainable for many American families, with colleges and universities now charging more than $100,000 per year at the high end. A recent Lumina Foundation and Gallup poll found that just 12% of surveyed adults without degrees or pursuing degrees view four-year colleges as affordable. The survey, conducted in June, included responses from 14,000 adults, nearly 6,000 college graduates, and 2,000 employers. Cost remains the primary obstacle preventing prospective students from pursuing degrees, according to the research.
In response to affordability challenges, families have increasingly turned to a combination of funding sources to pay for education. According to Sallie Mae’s latest survey of 1,000 parents and 1,000 undergraduate students conducted in April and May, nearly half of families borrowed money during the 2025-26 academic year, with 68% indicating borrowing was always part of their financial strategy. Parent income and savings typically cover less than half of total college expenses, while scholarships and grants account for more than a quarter of costs, leaving student loans to cover the remainder.
Family savings set aside for college have declined significantly in recent years. College Ave’s survey of 1,000 parents with current college students found that parents reported saving $37,897 in 2026, down substantially from $51,310 in 2025. As a result, only 16% of families who saved felt adequately prepared to cover degree costs through savings alone, compared to 27% the previous year.
Tuition increases have far outpaced other economic indicators in recent decades. The shift resulted from declining state funding, which transferred more educational costs to students and families. From 2008 to 2018, private university tuition and fees rose 26%, while public university costs increased 35% over the same period. Today, tuition provides approximately half of college revenue, compared to just a quarter historically. Tuition continues rising at approximately 5.5% annually, significantly exceeding inflation and wage growth rates.
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