- 95% of America’s high school students plan to continue their education after graduation, and 82% of families say it will be worth the cost.
- The average household savings earmarked for higher education has increased to $42,307 and 64% of households now have a plan to pay for college.
- The knowledge gap remains wide: only 22% of families know when interest on student loans typically begins to accrue, only 37% know that families often pay less than the published sticker price, and 48% incorrectly believe that scholarships are only available to top students.
College enrollment among American families is doubling, while sticker prices are rising and policymakers continue to debate the future of federal student aid. latest How America plans for college 2026 Reports from Sallie Mae and Ipsos show that 95% of high school students plan to continue their education after graduation, 90% of families see it as an investment in the student’s future, and 82% say it will be worth the cost.
The report is based on an online survey of 1,005 high school students aged 14-18 and 1,005 parents of high school students. This is the first update of the study since 2020, and the findings paint a picture of families that are more financially engaged than they were five years ago — saving earlier, planning early and bringing teens into the conversation about how to make payments.
But the same data also highlight uncomfortable gaps: Many families still don’t know how scholarships work, when interest on student loans starts accruing, or what graduates in their child’s intended field actually earn.
Commitment to saving for college is increasing
Six in 10 families considering higher education now have money set aside for it, and the average amount saved is $42,307 — up 61% from $26,266 in 2020. Sallie Mae and Ipsos note that the increase was driven primarily by higher-income households.
Most families still keep that money in simple general savings accounts (53%), while 39% use 529 college savings plans, which offer federal tax-free growth and tax-free withdrawals for qualified education expenses.
64% of households say they have plans to pay for higher education, up from 54% in 2020. Among families of high school seniors, that figure rises to 77%. Students themselves are part of the conversation more frequently than five years ago: 78% of high school students report being involved in discussions about how college will be financed.
However, the desire to get ahead economically is worrying. 83% of families considering higher education say they would stretch their budget to access the best educational opportunity, and 73% say they would rather borrow student loans than have their students drop out of college. Yet families also want guardrails: 68% agree there should be limits on student loan borrowing, while only 10% disagree.
Family influence: what it means for the budget
These numbers have a big impact on college budgets. Even $42,307 in savings for college covers less than two years of in-state tuition, room and board at most public four-year schools and a fraction of a year at private colleges. This helps explain why 46% of households still expect to borrow for higher education – down from 54% in 2020, but still close to half.
The type of accounts households save in also makes a big difference. 529 plans are tax-exempt at the federal level and can be withdrawn tax-free for qualified expenses such as tuition, fees, books, room and board, many states offer a state income tax deduction or credit for contributions.
The fact that 53% of households still rely on ordinary savings (which are taxed as ordinary income and have a negative impact on the FAFSA) shows that many are leaving meaningful gains on the table. For a family contributing $300 per month over 15 years, the difference between a 529 plan and a taxable account could amount to thousands of dollars, depending on state tax treatment and investment returns.
Lack of knowledge weakens planning
Despite greater interest in college, surveys show that many families still do not understand the financial aspects of it.
Less than 4 in 10 families say they have discussed students’ expected starting salary in their field of interest (38%), and only a quarter have looked at potential earnings compared to the cost of education (28%) or a school’s career placement rate (28%). Only 21% discussed the average student debt that graduates hold in their chosen field.
Misconceptions about basic financial aid concepts are prevalent. 48% of families believe scholarships are only available to students with good grades, even though many awards are based on financial need, demographics, desired major, athletics or community involvement.
Only 37% know that families often pay less than the advertised sticker price due to grants, institutional aid, and merit scholarships.
Only 22% correctly identify when interest on most student loans typically begins to accrue after graduation (hint: when the loan money is sent to school).
And while 64% can correctly identify the FAFSA as the application that qualifies students for federal grants, loans, and work-study, more than a third still cannot.
40% of families considering higher education say they feel they are alone when it comes to planning and paying for college.
AI is changing career plans, but not college plans
New questions about artificial intelligence were added in the 2026 edition. 79% of parents and students agree that AI skills will be essential in many future careers, and 69% believe AI will create new jobs and career opportunities.
Additionally, 46% are concerned that AI could make it harder for a student to enter the workforce, and 37% say parents have advised the student to reconsider career plans due to AI developments.
About 28% report that students have already changed career goals because of AI.
So far, concerns about AI have not dampened enthusiasm for college: only 5% of families do not plan a college education as a result. But technology is dictating what students plan to study and how they think about their first job after graduation.
What should families do next?
For families making these decisions in the coming years, the data point to several practical steps:
- Create a “college payment plan” by sophomore year. Families who plan report high confidence in their ability to succeed and rough cost estimates and savings goals are sufficient to get started.
- Transfer education savings to a 529 plan where it makes sense. A 529 plan can be tax-free, used for tuition, room and board, and apprenticeship costs.
- File the FAFSA every year, even if you don’t think you qualify for aid. This form unlocks federal grants, work study, state aid, and many institutional scholarships, and many states now require it for high school graduation.
- Run the numbers on starting salary and career placement before choosing a school or major. US Department of Education’s College Scorecard and this Occupational Outlook Handbook of the Bureau of Labor Statistics are free.
- Understand how student loans work. For unsubsidized federal loans and private student loans, interest begins accruing as soon as the funds are disbursed, not upon graduation.
One thing becomes clear from the Sallie Mae and Ipsos data: American families still believe in college, are saving more for it, and are bringing teens into the conversation more than ever. The next step is to close the information gap before signing the dotted line.
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