A new survey shows that many Americans misunderstand how much college really costs, contributing to enrollment hesitancy. The perception is largely shaped by misinformation about actual tuition, according to the Strada Education Foundation.
The report, Cost Confusion: Americans’ Misperceptions of College Costs, draws from a nationally representative survey of 2,004 adults conducted in November 2024. It shows how many people—especially those with limited formal education—misjudge the price of college and may not apply as a result.
“Many individuals struggle to pay for college and the accompanying expenses necessary to enroll,” the report notes. “But many also have inflated estimates of the cost… and these beliefs may discourage them from exploring their opportunities.” As a result, many may avoid applying to college altogether.
Widespread misunderstanding about college costs
- 77% of adults said college is unaffordable
- 85% believe public, four-year colleges cost too much
- 66% said even community college was too expensive
Most Americans overestimate the annual cost of both two- and four-year colleges.
On average, a year at community college costs about $6,000. Yet only 26% of survey respondents correctly estimated that amount—20% of respondents believed community college would run them more than $20,000 annually.
For public, four-year schools, the total—tuition, fees, housing and food—is closer to $21,000. Just 22% knew the correct range for these institutions; one in five respondents thought a four-year college education exceeded $50,000—underscoring how widespread the confusion is.
Transparency matters
The problem worsens with confusion about “sticker price” versus “net price,” as well as unclear communication about financial aid. Most institutions offer institutional aid or federal grants but they fail to make those discounts clear up front, the report notes.
In response, Strada and more than 650 institutions have joined the College Cost Transparency Initiative, which calls for standardized and understandable financial aid offer letters.
Who is most impacted by misinterpreting college cost?
People with lower incomes and less education were more likely to misjudge the cost of college—either too high or too low. For example, those with only a high school diploma were twice as likely to think community college runs over $25,000 per year compared to those with bachelor’s or graduate degrees.
Meanwhile, Black (38%) and Hispanic (30%) respondents were more likely to say college is affordable compared to 23% overall. Age also influenced perceptions, with older Americans most likely to believe college is unaffordable.
A call to campus leaders
The report urges policymakers and institutions to prioritize affordability and transparency. The survey found that 57% of Americans support increasing public funding for need-based financial aid, for example.
Suggested strategies include expanding financial aid, notifying students earlier about aid awards and improving tuition-setting practices.
