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.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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SoFi’s “The Cost of Admission 2025” finds a college degree remains a top ambition, after buying a home and tied with parenthood, even as student debt continues to delay major life milestones for the majority of Americans

SoFi Technologies, Inc. (NASDAQ: SOFI) unveiled “The Cost of Admission 2025” report, a national survey of 3,500 students, graduates, and parents examining how Americans are navigating the cost, value, and shifting perceptions of higher education. Amid changing economic conditions and new federal student loan policies, the report offers a cultural snapshot of how families are paying for college and evaluating its return on investment. As a leader in student lending, SoFi pairs these insights with expert advice and practical solutions—reinforcing its commitment to education as a key step on the path to financial independence.

The study found that the biggest challenge Americans face in financing education is understanding the true cost, with 95.5% of students and parents reporting at least one pain point, especially around navigating FAFSA®, scholarships, and grants. Inflation, rising prices, and volatile markets have caused 97% of respondents to rethink or adjust major financial decisions, including whether or how to attend college, while 88% say student debt has forced them to delay important life plans. Reflecting a focus on financial pragmatism, 63% of students prioritize affordability over a college’s reputation when making their choice.

“At SoFi, understanding our members and their ambitions is the foundation for building products that help people get their money right,” said Brian Walsh, PhD, CFP®, and Head of Financial Advice and Planning at SoFi. “When it comes to college, everyone deserves a path that fits their goals and their financial reality. That’s why we’re listening closely so we can deliver the right tools, guidance, and resources from school to career and beyond.”

The report features insights from leading financial experts across SoFi, Wall Street, and higher education, including Brian Walsh, SoFi’s Head of Financial Planning and Advice; Vivian Tu, host of SoFi’s Richer Lives, New York Times best-selling author and founder of Your Rich BFF; Beth Armstrong from Virginia Tech; and entrepreneur and creator Vin Matano. Alongside these expert perspectives, the study also shares stories from members who have successfully paid down or paid off their student loans using SoFi’s student lending products, financial advisors, and educational resources.

“When you truly understand your financial picture and strategically take advantage of tools like loans, you empower yourself to make decisions from a place of abundance—not fear,” said Tu, host of SoFi’s Richer Lives and Founder & CEO of Your Rich BFF. “It’s not just about affording college—it’s about having the confidence to invest in yourself, make informed choices, and build the future you want. Far too often, people feel boxed in by what they think they can’t afford. With the right resources, like those SoFi provides, you can shift that mindset and take control of your financial journey.”

“Today’s students come from a wide range of family structures—legal guardianships, shared custody, blended households—which makes navigating financial aid more complex than ever,” said Armstrong, Associate Vice Provost of Enrollment Management and Director of University Scholarships and Financial Aid at Virginia Tech. “The SoFi report brings these shifting realities to light and challenges us to rethink how we support students. We also need to spotlight more success stories—because across all types of institutions, students are managing debt, building careers, and proving that a degree can still be a smart investment.”

As the first company to introduce refinancing for federal and private student loans in 2012, SoFi builds financial solutions that help people achieve their ambitions. The company recently launched SmartStart, a program that allows members to refinance student loans and pay only interest for the first nine months, and SoFi’s Student Loan Debt Guide, a comprehensive resource designed to help borrowers confidently manage federal loan changes and repayment options. With over 10.9 million members, SoFi has refinanced over $46 billion in student loans since May, 2025.

To read the full report, visit https://www.sofi.com/student-debt-guide/, and to explore SoFi’s complete student lending options and other tools to help you get your money right, visit https://www.sofi.com.

Methodology

This study was conducted by the independent research firm Culture Co-op from April 27 to May 8, 2025, and is based on a nationally representative online survey of 3,500 people, including high school, college, and graduate school students, graduates with and without debt, and parents of Gen Z students. All student and graduate respondents had either taken out student loans or used some form of educational financing to fund a portion of their education. The sample was balanced across key demographics and analyzed across 50 data dimensions. Insights were further enriched through expert interviews and written reflections from SoFi members.

Vivian Tu is a promoter who receives compensation for their promotion across social media, email, and other channels.

About SoFi

SoFi Technologies (NASDAQ: SOFI) is a one-stop shop for digital financial services on a mission to help people achieve financial independence to realize their ambitions. Over 10.9 million members trust SoFi to borrow, save, spend, invest, and protect their money – all in one app – and get access to financial planners, exclusive experiences, and a thriving community. Fintechs, financial institutions, and brands use SoFi’s technology platform Galileo to build and manage innovative financial solutions across 158.4 million global accounts. For more information, visit www.sofi.com or download our iOS and Android apps.

Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SmartStart Loan: Eligible only for 7, 10, 15, and 20 year loan terms and fixed rate. Not available to borrowers in the Medical Residency ReFi program. Must meet creditworthiness requirements. Learn more at sofi.com/eligibility. During the interest-only period, your minimum monthly payments only pay accrued interest and do not reduce the loan principal balance on the SmartStart loan. After the interest-only period, your minimum monthly payments will increase for the remainder of the loan term to pay principal and interest on a conventional amortization schedule. You are only eligible to take a SoFi SmartStart loan one time as a primary borrower.

Interest-only for First 9 Months Repayment Plan: Repayment plan is available for fixed-rate loans only. For the initial 9-month period, monthly payments will be interest-only, with no reduction in the principal balance. Following the 9-month interest-only period, monthly payments will consist of both principal and interest for the remainder of the loan term. A 5-year term is not available for this offer. Choosing this option may result in a higher total loan cost compared to making full principal and interest payments from the start.

©2025 SoFi Technologies, Inc. All rights reserved.

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