According to The State of Higher Education 2025, published by the Lumina Foundation and Gallup, despite continued concern over cost, demand for education remains strong.
57% of unenrolled adults have considered enrolling in the past two years. However, finances coupled with stress remain some of the top reasons that force adults to drop out of college or delay enrollment.
Families reported spending an average of $30,837 on college during the 2024–25 academic year—up 9% from $28,409 last year and a return to pre-pandemic spending levels, according to “How America Pays for College 2025,” the annual study by Sallie Mae and Ipsos.
Family income and savings covered nearly half of the costs (48%), followed by scholarships and grants (27%), borrowing (23%), and contributions from family or friends (2%).
Nearly nine in 10 (89%) families said college is a worthwhile investment, and 82% are willing to stretch their finances to ensure the best opportunities for their students.
Eight in 10 families (79%) reported eliminating a school based on cost, but nearly half (47%) of all families also reported paying less than the sticker price for college.
Families most often cited proximity to home (40%), affordability (39%), and specific academic program (39%) as reasons for choosing a school.
While 59% of families created a plan to pay for college before enrolling, just 38% considered starting salaries after graduation.
Nearly half of families (48%) borrowed to help pay for college, consistent with prior years, and 72% of all families said they would rather borrow than miss out on attending.
Roughly six in 10 families (59%) said the availability of federal student loans has driven up college costs, and 35% of those who borrowed said access to loans led them to consider more expensive schools.
In addition, 42% of families with federal student loans expect their loans to be forgiven.
Inside Higher Education recently reported on a panel it hosted at the National Association of College and University Business Officers' annual conference.
The panel discussed findings from the 15th annual Survey of College and University Chief Business Officers, which gathered insights from financial leaders at over 160 public and private nonprofit institutions in 2025.
In the 2024 survey, 56 percent of chief business officers (CBOs) anticipated that their institutions would be in better financial shape one year later.
However, this expectation dropped to 43 percent in the 2025 survey. Additionally, at least 16 percent of CBOs are engaged in serious internal discussions about potentially consolidating some programs or operations with other colleges or universities.
There is widespread uncertainty within the higher education sector regarding financial planning, particularly in light of diminished federal funding and the challenges students face in paying for college.
Representatives from various institutions expressed concerns about recent legislation that caps certain student loans, eliminates other programs, limits repayment options, and requires programs to meet an earnings test for attendees to access federal student loans.
More than 54 percent of CBOs voiced worries about the sustainability of their institutions' increases in tuition sticker prices.
According to the Student Connection Association of the National Student Employment Association, The Library Journal has recently given a starred review to the upcoming book "The Student Debt Crisis: America's Moral Urgency" by Jamal Watson.
The Library Journal, in a review by Bart Everts published in June 2025, describes the book as a "profoundly moving, well-researched examination" of why 42 million Americans are burdened with student debt.
Watson's research demonstrates that for many poor and middle-class students, attending college without incurring debt has become nearly impossible due to predatory loan management practices and substantial increases in college costs.
The book's synopsis argues that student debt represents one of the most pressing civil rights issues today.
While emphasizing the moral imperative to ensure equal access to higher education, the book also offers practical solutions for debtors, borrowers, and policymakers. The Student Debt Crisis is set to be released on September 16, 2025.
Watson is an award-winning higher education reporter and serves as the executive editor of Diverse Issues in Higher Education. He is also a professor and associate dean at Trinity Washington University.
In a recent publication, Cory V. McCray's memoir, The Apprenticeship that Saved My Life, candidly addresses the obstacles he faced.
The USBE Online book review finds that McCray is equally open about the transformative power of mentorship, structured learning, and the dignity of work.
His apprenticeship not only propelled his career but also contributed to his personal growth, family stability, and eventual public service as a Maryland State Senator.
McCray emphasizes how "earn-while-you-learn" programs create opportunities for those overlooked by traditional educational models, particularly Black and Brown youth or anyone facing challenging circumstances.
Alongside his personal story, McCray provides practical guidance and inspiration for young people and families considering vocational pathways, as well as for policymakers and educators seeking scalable solutions for workforce equity.
