Even as concerns about return on investment rise, a college degree remains the goal for the vast majority of high school students, new data shows.
Ninety-five percent of families with high schoolers said their students will go on to college, according to Sallie’s new How America Plans for College report. Just 5% said that was an unlikely path after graduation.
For those interested in two- or four-year schools, most said it was for the skills training, career opportunities and higher earning potential, the education lender found. Roughly 82% of families with high school students considering college said they believe it will be worth the high cost. Sallie polled more than 2,000 adults and teens in January.
The rising price tag and growing student loan burden have played a large role in changing views about the higher education system, with students increasingly questioning the return on investment.
Many factors, including how much financial aid is offered and how much students have to pay out of pocket, as well as the choice of major, future earnings potential and how long it takes to graduate, help determine whether college pays off, according to a 2025 study by the Federal Reserve Bank of New York.
Meanwhile, reports often show that tuition is rising faster than financial aid. This means students and families are shouldering a greater share of the economic burden of paying for school.
How families make the numbers work
In most cases, families cover about half of college costs with income and savings, Sallie’s How America Pays for College report found. Free money from scholarships and grants accounts for more than a quarter of the costs, and student loans make up most of the rest.
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Six in 10 families have savings set aside for higher education, Sallie found, with an average balance of $42,307. These funds are often in a savings account, even over a 529 college savings plan, which is specifically for education expenses.
Despite the “significant advantages, tax-wise,” only 39% of families use 529 plans, according to Sallie spokesman Rick Castellano, “largely due to a lack of awareness and understanding about 529 plans.” Trump Accounts, which launch this July, will offer an additional tax-deferred savings option for families.
In the end, about half of families will borrow to pay for college, Sallie also found.
The student loan dilemma
For this year’s incoming freshmen, those who take out loans could rack up about $43,000 in education debt, on average, by the time they earn their bachelor’s degree, according to a separate NerdWallet analysis of National Center for Education Statistics data.
However, following the passage of President Donald Trump‘s “big beautiful bill” last July, there are new limitations on the amount of federal loans students and parents can access.
“For students starting college in the Fall 2026 or thereafter, parents no longer have a line of credit from Uncle Sam to finance the full cost of college,” Kalman Chany, a financial aid consultant and author of The Princeton Review’s “Paying for College,” said in an email.
Private student loans can fill the gap once federal aid and scholarships have been exhausted, but the rates on those loans tend to be higher and may have stricter credit standards, Chany said.
Castellano advises students and their families to “borrow responsibly — and don’t borrow more than you need to afford your education.”
