A college degree has been a keystone of the American Dream for decades.
But the value proposition is changing. Between ever-increasing tuition costs, a high-profile political debate on student loans, and
fewer employers requiring formal degrees,
many are calling into question the basic economics of higher education.
To learn more about how Americans’ perceptions are shifting, SoFi fielded a survey of 3,500 prospective and current students, graduates, and parents.
The takeaway: College is still the goal, but affordability is now top of mind. And unfortunately, the cost of college — and the options for paying for it — are often a big black box.
Here are some of the most interesting highlights from the “
The Cost of Admission 2025” study:
Price is a mystery. Simply figuring out how much college actually costs is a top pain point in funding higher education, tied with understanding the financing options. Twenty-eight percent of respondents say they have “absolutely no idea” how much a four-year college experience costs, and when they wagered a guess, their estimates fell 30% to 65% short of
actual costs.
Without a clear understanding of the numbers they’re dealing with, prospective borrowers can feel paralyzed — and unable to make decisions. In fact, fewer than half of all students and parents of students (44%) say they feel well informed — or informed at all — about student loans.
They’re down on debt. The stigma around debt is high for Gen Z, which has seen the impact that student loans have taken on older generations. And it’s not only borrowing, it’s simply
discussing debt: 68% of young people and their parents would rather talk about sensitive topics like their sex life than debt.
Some are ghosting their loans. Uncertainty about student loans has some ignoring their debt altogether. More than one-third of student borrowers say they have no intention of paying back their loans: 20% say they are waiting for them to be forgiven, and 15% say they plan to default.
So what? Ninety-three percent of student loan borrowers say that, given the chance, they would have approached their college financing differently. And many students and parents have either used or considered using less traditional methods, like crowdfunding platforms, home equity lines, and cash from crypto.
If you’re rethinking how to finance this important milestone, SoFi has resources to help you learn, plan, save, and pay. That includes programs like
SoFi SmartStart, which allows borrowers to pay only the interest on a refinanced student loan for the first nine months; access to
financial planners; and our comprehensive
Student Debt Guide.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
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