Amid the federal government’s plans to minimize the federal role in education, new research confirms that student aid from the top is more important than ever in improving college affordability.
What students actually pay for college
In the last 10 years, average tuition costs have increased less than inflation, according to new data published by College Board. Since last school year, the average published in-district and in-state tuition and fees have increased by less than 3% at public two- and four-year colleges.
After adjusting for 2.6% inflation between the first eight months of 2024 and 2025, average tuition and fees increased by less than 1% in the public sector.
Annual loan borrowing rose slightly since last year, while students received, $173.7 billion in grant aid, representing a 5.4% one-year increase, adjusted for inflation.
The growth was driven by a staggering 19% increase in Pell Grant aid, according to the research. The number of recipients jumped from 6.4 million to 7.3 million this year.
Expanding Pell Grants proves progress toward affordability, College Board Vice President of Research Jessica Howell said.
Notably, over the past decade, the average net tuition and fees paid by first-time, full-time in-state students enrolled in public four-year institutions has nearly been cut in half. These costs peaked in 2012-13 at $4,450 (in 2025 dollars) and have since declined to an estimated $2,300 in 2025-26.
Meanwhile, a growing number of students—particularly graduate students—are taking out loans. In 2024-25, $88.7 billion was disbursed, an increase of $500 million from 2023-24, adjusted for inflation. This marks the first year-over-year growth in annual borrowing in the last 14 years, according to Matea Pender, coauthor and senior policy research scientist at the College Board.
Among the growing number of borrowers, nearly a quarter of them owed between $10,000 and $20,000 in loan debt as of June 2025. About a third owed less than $10,000.
Read the full report here.
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