College costs for families averaged $34,019 during the 2025-26 academic year, up 10% from the previous year, according to an annual report from financial services company Sallie Mae. Families paid out of pocket for 49% of those costs — which include tuition, fees, housing and other expenses — drawing from student and parent income and savings, according to a poll for Sallie Mae conducted by Ipsos. They covered another 27% through scholarships and grants and 22% through borrowing. A much smaller amount, 2%, came from gifts from friends and family. How families pay for college could change in the coming years with the implementation of new federal student lending caps. Even so, two-thirds of surveyed families said they support federal lending limits, and 53% said colleges should respond by lowering tuition rates.
