# Family College Spending Rose 10% to $34,019 Last Year Average spending reached $34,019 in the 2025-26 academic year, with scholarships and grants covering 27% of costs. - **Source:** [The College Investor](https://brifing.si/source/d431d77d-492e-4105-be7c-2525bbb643ab) - **Published:** 2026-08-12 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/9d84893c-9ad4-4bb8-80a9-12678cba572f ## Sharp Increase in College Spending In the 2025-26 academic year, average college spending by American families jumped 10% to $34,019, outpacing published tuition increases. While 91% of families view college as a valuable investment, 84% feel confident about their financial decisions. The annual Sallie Mae and Ipsos study surveyed 1,000 undergraduates and 1,000 parents, revealing this spending surge amid new federal borrowing caps. ## Funding Sources and Allocation Parent and student income/savings covered 49% of costs ($16,624 out-of-pocket), remaining the primary funding source. Scholarships/grants contributed 27%, borrowing 22%, and gifts 2%—aligning with recommended payment priorities. 529 plan usage grew to 34%, with average distributions of $9,506. Only 39% paid full sticker price, reflecting record tuition discounting across higher education institutions. ## Cost Variations by Institution Type Spending differed dramatically by school: $21,388 at two-year public colleges, $31,886 at four-year public schools, and $47,032 at four-year private colleges. These figures represent actual out-of-pocket payments, not published prices. Families at private institutions paid nearly double public college costs, yet 91% maintained college was worth the investment despite financial strain. ## Scholarship Utilization and Misconceptions 61% of families used scholarships (averaging $8,291), while grant usage rose to 59%. Shockingly, 74% of non-users never applied due to pervasive myths: 48% believed scholarships required exceptional grades, 41% thought they were freshman-only, and 35% assumed income disqualification. These misconceptions cost families thousands in unused aid annually despite universal eligibility. ## FAFSA Completion and Awareness Gaps FAFSA completion improved to 74% (from 71%), with 81% finding the process easy—a significant usability jump. However, only 25% knew applications open in October, missing early-aid opportunities. Among non-filers, 26% overestimated income limits while 19% were completely unaware of FAFSA. Timing awareness remains critical as some aid follows first-come, first-served allocation. ## Financial Aid Appeals and Institutional Responsibility 33% of aid recipients successfully appealed for more funds, with 70% securing additional money. Families overwhelmingly (74%) believe affordability responsibility lies with colleges—53% demand tuition cuts, 38% want expanded scholarships, and 36% seek more generous aid packages. This reflects growing pressure on institutions to address cost barriers as household budgets tighten. ## Borrowing Trends Under New Loan Caps 47% of families borrowed for college, with 68% planning loans in advance. Federal loan usage dipped to 25% (averaging $9,186), while Parent PLUS loans rose to 13% but averages plunged from $10,286 to $7,735 due to new caps. Starting July 2026, Parent PLUS loans are capped at $20,000 annually/$65,000 lifetime per student—yet only 47% of families were aware of these limits. ## Family Sentiment on Policy Changes 66% support federal borrowing limits, with 58% believing unlimited loans fueled tuition inflation. Just 13% of parents expressed concern over new caps. Ipsos's Dan O'Leary notes families continue prioritizing education despite financial pressures, viewing it as non-negotiable for upward mobility. This persistence suggests demand will endure even as financing mechanisms evolve. ## Sources covering this story - https://thecollegeinvestor.com/86178/families-spent-34019-on-college-last-year-up-10/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._