2025 trends in college costs & aid

Each year, the College Board releases a comprehensive report on university enrollment numbers, tuition costs, student borrowing, and financial aid programs. The 2025 report delivers a unique perspective on higher education’s post-pandemic recovery, examining trends in overall tuition rates, related expenses, and students’ changing reliance on aid.

Below are the main highlights from the report, featuring original, easy-to-read graphs to help you track all emerging trends in college pricing and student debt. In our summary, as in the official report, we primarily focus on undergraduate students, but include graduate student data for meaningful comparison where relevant.

Takeaway #1: Student enrollment is rebounding

From virtual learning shifts to the introduction of test-optional policies, the COVID-19 pandemic fundamentally reshaped higher education trends. The decline in college enrollment became an urgent concern, as full-time undergraduate enrollment dropped by nearly 7.6% between 2019 and 2022, and part-time enrollment declined approximately 6%, as reported by the College Board. This college enrollment decline built upon existing downward trends in post-secondary attendance that began back in the early 2010s. The percentage of students enrolling in higher education within a year of graduating high school fell by 6 percentage points between 2019 and 2020, and similar disruptions emerged in graduate student enrollment patterns.

Recent data, however, indicate a modest reversal of the overall decline in college enrollment. Reported enrollment rates from 2023 show the first signs of renewed growth: in Fall 2023, American colleges enrolled 9.6 million full-time and 6.1 million part-time undergraduate students (totaling 15.7 million), compared to 9.3 and 5.9 million the previous year. The latest estimates are that over 16.2 million undergraduates were enrolled in college for Fall 2025, with total post-secondary enrollment at about 19 million. Meanwhile, graduate enrollment held steady with only slight increases since the pandemic onset. Since 2023, enrollment at community colleges and four-year public institutions has increased the most, while attendance at private nonprofit and for-profit schools has declined.

The college enrollment decline impacted institutions unevenly across sectors. Between 2019 and 2023, public two-year colleges experienced a significant reduction in full-time enrollment (nearly 15%), underscoring a pronounced decline in community college enrollment. Interestingly, private non-profit institutions bucked this trend, with a 6.3% increase in part-time enrollment during the same period, perhaps reflecting long-term college enrollment patterns rather than short-term shifts. The main drivers of the college enrollment decline likely included health concerns, family responsibilities, technological barriers to remote learning, and a volatile job market that drew some potential students directly into the workforce, especially from public programs.

Part-time programs weathered the storm of college enrollment decline more effectively than their full-time counterparts. The steepest dip in part-time enrollment occurred between 2019 and 2020 (6.1 million versus 5.7 million), after which these numbers steadied. Meanwhile, full-time undergraduate headcount shrank by nearly 1 million students from 2019 to 2022, before rebounding slightly in 2023. Comparing percent changes from both 2019-2023 and 2022-2023 reveals improving college enrollment across public two-year and public four-year colleges, as well as private four-year institutions, except for a slight drop in four-year, part-time programs.

Importantly, the pandemic-driven decline in college enrollment did not slow the growth of diversity in student populations. From 2015 to 2023, the proportion of non-White students at four-year private institutions rose from 41.5% to 48.5%; at four-year public colleges, the share of Black, Hispanic, and other student groups grew from 44% to just over 50%. As overall higher education enrollment rebounds, so too does the participation of students from diverse racial and ethnic backgrounds, reaffirming that, while recent years brought significant disruptions, they did not halt overall progress toward representation and opportunity in U.S. colleges and universities.

While international student enrollment remained steady over the years examined by the College Board, recent data show that the number of international students attending U.S. universities is decreasing. An overall decrease in graduate student enrollment in 2025 was largely due to fewer international applicants amid immigration concerns.

Takeaway #2: College costs have largely stabilized in the past decade

College expenses remain a major point of discussion in the U.S., and for good reason. The sticker price of college, which refers to the published tuition and fees before any financial aid is applied, has more than doubled throughout the 21st century. Meanwhile, the average federal student loan debt per borrower is around $40,000, highlighting the financial challenges many students face. However, a closer examination of recent tuition rates and college expenses reveals emerging trends worth noting.

Between the 2024 and 2025 academic years, the sticker price of tuition increased modestly across all types of higher education institutions, unadjusted for inflation. Private, four-year universities continue to top the list when it comes to college expenses, with an average published tuition, also known as the “sticker price,” of $45,000 for 2025 (a 4% increase from 2024), not including an additional $20,000 or more for room and board. It’s important to distinguish between the sticker price colleges report and the actual net cost students pay after factoring in grants, scholarships, financial aid, and loans. Approximately 25% of students use federal student loans, and 83% of students attending private, four-year schools receive some form of institutional grant aid and/or use other financial aid sources. These forms of assistance can substantially reduce overall college expenses, even as sticker prices rise (in real terms).

Taking a step back to review broader trends in tuition and college expenses, however, we find that over the past five years, average tuition and associated fees have remained fairly steady, even showing slight drops in some cases. Adjusting for inflation, college expenses such as tuition and fees at many institutions have actually decreased by thousands of dollars since 2020. For example, public four-year colleges charged more than $13,000 in tuition during the 2020 academic year, while in 2025, the mean fell below $12,000 annually, an approximately 7% decrease. The steady climb in college-related expenses that marked the early 2000s appears to have slowed, with the pandemic likely contributing to this shift.

Distinguishing between published sticker prices and actual net costs offers further insight into the realities of college expenses. While the sticker price for tuition, housing, and meals has remained relatively stagnant at many institutions, net costs, the real out-of-pocket expense for students, have been dropping at both private and public four-year universities. Average grant aid awarded to students (both merit- and needs-based) has also grown consistently, rising from $25,000 to $28,000 at private universities since 2016. Understanding net costs vs. published prices is crucial in evaluating the true financial commitment of attending college and planning for future college expenses.

Takeaway #3: “Sticker prices” don’t tell the whole story

As mentioned in the previous section, sticker price refers to the published estimate of total college expenses that institutions provide to help prospective students and families begin their financial planning. However, a college’s sticker price rarely matches the actual cost of attendance (COA), as real college expenses are influenced by factors such as financial aid, housing, and local cost of living. Fluctuating inflation rates add additional pressure to individuals and families working to afford schooling. Persistent high inflation continues to increase everyday living costs, highlighting how the sticker price for tuition may lag behind other rising college expenses.

Stable tuition rates don’t mean college has suddenly become affordable: annual college expenses can quickly accumulate and place a considerable financial burden on families. When you compare the average COA with the sticker price at private colleges, you’ll notice that most students end up paying roughly half of the published figure ($37,000 versus over $60,000), which is still a considerable amount. Although financial aid packages at public colleges may be less generous (the median endowment at private four-year schools is $47,900 per undergraduate student, versus $5,700 at public schools), their overall sticker price and associated college expenses are significantly lower for in-state students. For the 2025 academic year, the typical net price at public four-year colleges was just over $20,000 per year, along with lower related college expenses at in-state schools.

In terms of tuition costs alone, first-time (no previous post-secondary schooling), full-time college students at public universities paid an average of $2,300 in tuition and fees, compared to nearly $17,000 at bachelor-conferring private schools during the 2025-26 school year. At public, two-year colleges, most student received enough aid and financial support to nearly or fully cover their tuition costs. However, as students progress through their college education, tuition costs typically rise each year due to lower aid amounts, higher premiums and charges for advanced students, and other factors. Other costs, like housing, food, and supplies, may also increase, and are important to consider when managing expenses.

A realistic student budget, therefore, encompasses more than just tuition and required fees: students and families must also plan for additional college expenses, such as housing, academic supplies, transportation, and day-to-day living costs. When assessing student budgets across the higher education landscape, it’s clear that a student could face over $60,000 in college expenses per year when attending a four-year private institution (twice as much as the average student attending a public, four-year school in-state). For public out-of-state and private non-profit colleges, tuition accounts for the largest portion of college expenses, while housing and food make up a greater share of the student budget at public in-district and in-state schools.

Takeaway #4: Public education costs vary widely across the country

Though the average cost per student is generally lower for public institutions than for four-year private colleges, tuition costs can vary dramatically by state. For example, students enrolled in two-year public programs may attend a significantly discounted program for $1,500 annually in California or have to pay nearly $9,000 if they’re based in Vermont.

This disparity is also evident at bachelor’s degree-granting institutions. Four-year public universities in Florida, where in-state tuition is less than $7,000 a year, offer a significant cost advantage compared to schools in New England, where the average public-to-private cost per student can approach $20,000 for in-state tuition. These differences are shaped by several factors, including local cost of living, school selectivity, and the level of government subsidies that help reduce per-student costs and ease the financial burden on families.

A key benefit of attending a public university as an in-state student is the direct financial support from local and state governments, which helps lower the per-student cost between public and private schools. States and municipalities across the U.S. allocate varying amounts of funding to support residents earning degrees in their home state, with Alaska and Illinois leading with over $20,000 per capita. During the pandemic, stimulus programs increased this support, leading to increases in federal appropriations, government grants, and contracts ot students. Historically, increases in state funding are linked to higher enrollment at public institutions. As recent data highlight, most U.S. students choose public four-year universities, likely motivated in part by lower public vs. private school costs per student.

Takeaway #5: Financial aid is shifting

Another noticeable trend in the College Board’s analysis is the evolving landscape of college financing over the last decade. The average full-time undergraduate student now receives $16,810 in financial aid, including $12,080 in grants, $3,790 in federal loans, $850 in education tax benefits, and $90 from federal work-study (FWS). While millions of students rely on federal loans each year, these programs are just one of several options for paying for college. In aggregate, total aid awarded to students decreased from $235 billion in 2016 to just over $200 billion in 2025. Notably, the share of student expenses covered by federal loans has dropped from 32.1% to 22.5%, reflecting a shift toward alternative forms of financial aid. Institutional grants have now become the largest source of financial aid for college students.

Focusing on the 2024 academic year, only 23% of college funding came from federal loans ($46.3 billion), highlighting growing interest in learning how to pay for college without worrying about keeping up with loan payments down the line. The average federal loan per full-time, undergraduate student peaked during the 2010 academic year at about $7,500 (in 2024 dollars), then dropped to $3,800 in 2024, an almost 50% decrease. The amount of nonfederal, private education loans decreased from $29.1 billion to $12 billion between 2007 and 2023, though this number increased to about $12.5 billion in 2024.

Pell Grants, awarded to students who demonstrate considerable financial need, contributed a significant share of support at 19%. However, the total amount distributed through Pell Grants and similar federal programs has declined over the past decade. While individual Pell Grant award amounts have remained steady, total federal spending has been reduced by nearly half since 2010, from approximately $51 billion to $30 billion, resulting in fewer recipients. For veterans and recipients of GI Bill benefits, who numbered about half a million compared to 7.3 million Pell Grant recipients, the average award exceeded $18,000 per person, whereas Pell Grant recipients received roughly $5,000 on average.

On their own, Pell Grants cover approximately these percentages of typical costs associated with college attendance, and can carry a great deal of weight at public four-year schools in particular:

Examining where and how financial aid is allocated, needs-based programs like the Federal Supplemental Educational Opportunity Grant (FSEOG) are especially impactful for students attending public two-year colleges. In contrast, most direct subsidized and unsubsidized federal loans help fund attendance at public four-year institutions. While fewer students attend for-profit colleges than other institutions, 36% of federal loans went to students attending schools in this category. For those seeking financial aid for graduate school, Grad PLUS loans, which previously allowed borrowing up to the full cost of attendance, are primarily used by graduate students enrolled at private universities (67%) rather than at public universities (27%).

Overall, there is a clear trend toward reducing reliance on student loans to pay for higher education, particularly at the undergraduate level. However, for certain loan types such as Parent PLUS and Grad PLUS loans, borrowing levels have continued to rise in recent years, especially among those seeking financial aid for graduate school. Updates to these programs underscore the importance of exploring diverse options for paying for college without loans and of maximizing grant and scholarship opportunities.

Updates in the OBBBA

Over the last decade, average loan amounts per borrower have steadily increased for both Parent PLUS and Grad PLUS loans, two key forms of financial aid for families supporting their students and for graduate school. On average, students took out $22,600 in Parent PLUS loans and $34,200 in Grad PLUS loans during the 2024 academic year.

Recent legislative updates through the One Big Beautiful Bill Act (OBBBA) have introduced significant changes to these student loan programs. Previously, Parent PLUS and Grad PLUS allowed families and graduate students to borrow up to the full cost of attendance. The new borrowing limits are as follows:

• $20,000 per year for Parent PLUS loans ($65,000 lifetime)
• $20,500 per year for graduate students in “non-professional” programs using Grad PLUS ($100,000 lifetime)
• $50,000 per year for borrowers in professionally designed graduate programs (such as medicine, law, dentistry, and related fields) ($200,000 lifetime)

These new caps will directly impact financial aid for higher education, especially since the typical graduate student borrower often takes out well above the newly set limit for non-professional degrees. As a result, students and their families who use Parent PLUS or Grad PLUS loans now need to consider new strategies to cover remaining expenses, including setting up additional payment plans or seeking alternative financial aid. (Please note, however, that students already enrolled in school will be given a grace period of a few years before these changes will affect them).

Additional reforms include changes to student loan repayment options (such as consolidating multiple income-driven repayment plans into a single plan) and enhancements to Pell Grants, including the addition of a job-training component.

Takeaway #6: Undergraduate and graduate students use federal aid differently

As we saw with federal Grad PLUS and Parent PLUS loans, graduate students consistently tend to be heavier borrowers than undergraduate students. Even as the number of students using federal financial aid for graduate school and overall loan volumes appear to be moderating, most graduate students still depend heavily on federal loans and other forms of financial aid to cover schooling costs.

The graph above highlights a critical gap in financial aid for graduate school: few federal grants are intended for or reach graduate-level students. In the 2024 academic year, college students overall received over $51 billion in federal grants, whereas graduate students were awarded only $3 billion. Although undergraduate loan amounts are higher overall, the rate of decline in borrowing is not as pronounced among graduate students.

It’s also important to consider scale: far fewer students attend graduate school than undergraduates (about 3 million vs. 16 million), so it’s valuable to view financial assistance by recipient type. While the per-person share of federal grant aid is more evenly distributed, full-time graduate students typically borrow much larger sums than their undergraduate peers. With limited access to institutional grants and fewer federal aid options beyond loans, graduate students are significantly more reliant on federal loan programs and related forms of financial aid to shoulder the costs associated with tuition and living expenses.

Takeaway #7: Most student debt is held by “mega” borrowers

Declining borrowing rates point to more than just lower enrollment: they seem to reflect a societal shift driven by fear of accumulating massive student debt.

The total amount of federal student debt in the U.S. for all post-secondary students was $1.66 trillion in 2025 (total overall debt surpassed $1.8 trillion). Among those with outstanding balances, about one-half owe $20,000 or more. Borrowers with high debt amounts account for a disproportionate share of total student debt as well. For example, although only 2% of borrowers owe more than $200,000, this segment possesses 20% of total U.S. debt. Graduate students enrolled in multi-year, specialized programs are especially reliant on federal loans, as discussed above.

About 47% of bachelor’s degree recipients from private and public four-year schools graduated with debt in 2024, and the average cumulative debt per borrower was $29,560. This is an observable decrease from 2019, when 56% of students graduated with an average debt of $35,310. Public graduates finished school with less debt on average in 2024 than those who attended private universities ($27,420 vs. $34,420), though both numbers are down considerably from the past five years.

With greater awareness of the student debt crisis and fewer available relief programs, it seems that many students and families have taken it upon themselves to reduce their debt on an individual basis, taking advantage of aid from private schools and funding sources that support local and state school attendance. Rising institutional grants are also helping make education more accessible, especially at a time when colleges and universities are just beginning to recover from lower attendance during COVID.

How to reduce your college costs

After exploring nationwide trends on the price of education and available financial resources, you’re now better equipped to approach your college search and develop strategies to manage expenses and lower net costs:

1. Complete your Free Application for Federal Student Aid (FAFSA) and CSS profile (used mainly by private institutions for grant amounts) by the deadlines listed to be considered for federal and institutional aid.
2. Check your eligibility for programs like Pell Grants or other income-based federal financial aid.
3. Set a maximum amount you and your family can pay each year out-of-pocket, and the maximum amount you’re willing to take out in loans. When you receive your decision and financial aid letters, use these guidelines to inform your final choice.
4. Consider all possible expenses, not just tuition, and budget accordingly.
5. Explore in-state public schools. Large, public universities offer world-class education and research opportunities.
6. Research private schools that offer generous financial aid packages.
7. Two-year colleges allow you to begin your college education with minimal expenses, giving you the flexibility to obtain an associate’s degree or transfer to a four-year institution.
   1. Some schools offer dual enrollment courses, allowing high school upperclassmen to take college-level classes through public schools and earn credit.
8. Register for AP classes: strong exam performance can lead to college credit or advanced placement, potentially enabling students to graduate earlier.
9. Aim for a high score on the ACT, SAT, or CLT, as this can help open up merit scholarship opportunities.
10. Apply for external scholarships offered by non-profits, or look up publicly funded opportunities in your state or local area.
11. Avoid taking out private loans, as these can come with high interest rates and fewer protections.

With the right mindset and thorough research, paying for college becomes manageable and less of a financial burden.

Final thoughts

The College Board’s annual report provides a deep look at crucial trends, including the decline in college enrollment and shifting patterns in higher education. The COVID-19 pandemic led to a marked decrease in college attendance, leading both post-secondary institutions and students to reassess long-term goals and commitments. Recent data show a gradual rebound, with more students returning with a heightened awareness of education costs and borrowing risks. The decline in college enrollment has also prompted families to weigh financial choices more carefully, with most students turning to financial aid to offset rising costs.

Notably, students attending public two-year and four-year in-state colleges benefit from the largest institutional discounts, helping to counteract the effects of the ongoing college enrollment decline. This annual report aims to deepen your understanding of the higher education financial landscape, equipping you or your child to navigate upcoming decisions effectively.