Families Keep Paying More for College as Costs Climb

Stephanie Thomas, now 49, is a certified financial planner in Raleigh, North Carolina. More than 25 years ago, she went to college with help from her parents, student loans and a part-time job as a gymnastics coach. By graduation, she had about $20,000 in student loans.

Today, college costs are much higher. According to CNBC, average tuition and fees rose 74% at private four-year institutions between 1995 and 2025, after adjusting for inflation (the general rise in prices over time). At four-year public colleges, they rose 101% over the same period.

The price gap is also wide. By the 2025-26 academic year, room, board, tuition and fees averaged $25,850 at four-year in-state public colleges. For out-of-state students at those schools, the average was $45,780. At four-year private colleges, costs average $60,920 a year.

Many families borrow money to pay for school. Nearly half do, according to Sallie's How America Pays for College report. Outstanding student debt totals $1.85 trillion, including both federal and private loans.

Some borrowers are struggling to repay. About 9.3 million federal student loan borrowers were in default as of June 30, up from about 6.2 million in 2016. Default means a borrower has failed to repay a loan as agreed.

The Trump administration has moved to limit access to federal loans, including a total lifetime borrowing limit. At the same time, postings for entry-level positions in the U.S. fell 35% since January 2023, according to Revelio Labs.

Students are choosing different paths. Enrollment in undergraduate certificate and associate degree programs each grew about 2% last year, while enrollment in bachelor's degree programs rose by less than 1%. Community colleges enroll 752,000 students in undergraduate certificate programs, a 28% jump from four years ago.

Dual enrollment, where high school students take college-level classes, is also growing. The National Student Clearinghouse Research Center's spring 2026 report showed a 9.6% jump in dual enrollment from the previous year. Thomas' youngest daughter, Ainsley, is 16 and takes this kind of coursework in high school.

Thomas and her husband saved for their children's education in 529 college savings plans. Ainsley plans to earn an associate's degree, then attend North Carolina State University for two years. She expects to receive her bachelor's degree in 2030.