College remains the dominant postsecondary pathway, despite growing concerns about declining interest in higher education.
Only 5% of families with a high school student say their child is unlikely to attend college, according to a new report from Sallie Mae, a college-planning company. The finding comes at a time when a quarter of Americans say they have “very little” to zero confidence in higher education, a July Gallup poll suggests.
High schoolers aren’t only interested in college, but they’re actively preparing for it. Roughly 85% of families have researched colleges, met with counselors or visited campuses.
More than three-quarters of families with a high school senior have a plan to pay for college. However, paying tuition remains the most complex factor for interested families. There are several ways parents are managing costs:
A savings plan: Six in 10 families have set aside money for college, with an average savings totaling $42,307 (up from $26,266 in 2020).
529 college savings: Nearly 40% of families rely on a 529 college savings plan for education expenses.
Student loans: Interest in borrowing has declined by nearly 10% since 2020. Still, nearly three-quarters of families would rather take out student loans than not send their kid to college.
Reasons not to attend college
Meanwhile, there are at least a dozen reasons cited in the research why high schoolers aren’t considering college. Avoiding student debt, career uncertainty and the belief that college isn’t worth the cost remain the top concerns among families.
Colleges that communicate ROI and affordability will have an easier time attracting undecided families, according to reporting by University Business’ Alcino Donadel. High school graduates are far more interested in how colleges can help them succeed than previous generations.
“I think the current group of students is way more outcome-focused than at any time that I’ve been in this industry for almost three decades,” Kevin Krebs, founder and managing director at HelloCollege, told UB. “Parents and students are nervous about a large investment not paying off.”
Krebs outlined three ways colleges can stay competitive:
ROI is key: Institutions must convey their programs are affordable and result in gainful employment.
Promote AI readiness: Leaders should promote AI upskilling to potential applicants, many of whom have mixed feelings about the technology.
Prioritize specialization: Specialization can help institutions strengthen program quality, expertise and industry connections. Institutions should redirect resources toward programs with stronger enrollment potential and workforce alignment.
“I think you have all these colleges that want to offer programs to be appealing to everybody, but the pie is a lot smaller,” Krebs warned. “If you don’t change with the times, the times are going to leave you behind.”
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