New Data: Families Underestimate College Costs by $14,000 Annually, College Ave Survey Finds

College-bound families are underestimating the true cost of college by more than $14,000
a year, according to a new College Ave survey, exposing a growing "expectation gap" as
students head to campus. While costs are higher than anticipated, students remain
confident in the value of a degree and continue to rely heavily on their parents as their most
trusted source of financial guidance.

Students committed to their education – 85% believe a degree is crucial for their future
For personal finance information, students rank their parents as the number one influencer

WILMINGTON, Del., May 27, 2026 /PRNewswire/ -- A new survey by College Ave, a leading financial services company, reveals an "expectation gap" that is taking college-bound families by surprise. As families with high school graduates prepare for the first college tuition bill, the College Ave survey of 1,061 four-year college students conducted by Barnes & Noble College Insights finds that half of all students (51%) found the cost of college to be higher than anticipated, an average of $14,137 per year – a potential $56,000 over a four-year degree.

Despite the surprising cost of college, students are optimistic about their educational investment – 85% of students believe their degree is crucial for their future. More than two-thirds believe their school is invested in them succeeding in a career post college (68%) and are building professional connections and securing internships in school to help with their career post college (67%).

Crucial in helping students navigate financial independence and the road to college is parents – more than three-fourths of students (78%) cite their family as their primary source of financial education, ahead of high school or college classes (65%), friends and peers (41%) and far outpacing social media (9%), web sites (6%) and AI tools (4%).

"Year over year, our College Ave student survey reveals students view higher education as the key to unlocking their future," said Joe DePaulo, CEO and Co-Founder of College Ave. "Our new survey highlights the important role parents play in not only contributing to college, but also in helping students understand and master personal finance skills, including student loans." 

College Costs: Beyond Tuition, Costs That Add to the Bottom Line

Tuition and fees may be the largest college expense; however, there are several other expenses that can make the cost of college more than originally budgeted:

• Surprising Costs: Students cited books and supplies (58%), tuition and fees (57%), housing (45%), dining out/off-campus activities (29%) and extracurricular activities like clubs and organizations (15%) as the most surprising expenses.
• Housing Expenses: For the 64% of students living in on-or-off campus housing, the average monthly housing/rent is $1,501.
• Parents Supplementing the Bill: More than three-fourths of parents contribute to basic costs, including their student's phone bill (64%), health insurance (53%), and groceries or meal plan (52%). Beyond tuition costs, parents also report chipping in for housing or rent (49%), cable or internet bills (32%), transportation costs (31%) and their student's discretionary expenses like clothing and going out with friends (18%).

Student Loans, How Students are Approaching Borrowing for College

Nearly half (46%) of students plan to use federal student loans to pay for college, while 12% plan to use private student loans.

• Loan Amount: On average, students who plan to borrow expect to borrow $38,775 in total to fund their education.
• Knowledge Gap: While 85% of students want to improve their financial literacy, they report the lowest confidence in areas like student loans (40%), alongside interest rates (39%) and investing (32%). More than half (56%) of those students who borrowed made the decision on how much to borrow with little to no input from their parent.
• Blind Spot: Although 82% of the students who plan to use loans understand they will pay back more than they borrow, 78% have no idea what their monthly payment will be upon graduation.

Parents, the Power Influencer

Despite leaving the nest, students report parents as the number one source of trusted information.

• The Trusted Source: A resounding 78% of students cite their family as their primary source of financial education, pointing to parent's important impact on helping their children navigate college financing. Parents were notably ahead of high school or college classes (65%), friends and peers (41%) and far outpacing social media (9%), web sites (6%) and AI tools (4%).
• Building Financial Confidence: More than 80% of students want to improve their financial knowledge, creating an opening for parents to have meaningful conversations around personal finance. One important conversation to have – how much the student will need to borrow for their college degree. Only half (54%) considered their future salary when determining how much in loans to borrow.
• Understanding Debt: 62% of students are worried their monthly loan payment will be a larger part of their budget than they anticipated. Parents can guide students toward tools, like College Ave's student loan calculator, to help them estimate the total cost of their loan and monthly payment.

College Ave offers resources and tools to help parents and students navigate the road to college. With helpful articles on paying for school to resources like student loan calculators, College Ave can help families plan and pay for college. College Ave's private student loans and parent loans can also help families cover up to 100% of the cost of attendance. For more information, visit CollegeAve.com.

About College Ave
College Ave started with a big vision and a simple mission - take the stress out of paying for college so students can focus on preparing for a bright future. Today, College Ave is a leading financial services company that combines best-in-class technology with deep industry expertise to deliver practical, personal solutions - giving young adults confidence for the road ahead. We keep it simple: competitive rates, straightforward products, and support you can count on from start to finish. Visit: collegeave.com.

About the Survey
The College Ave survey was conducted by Barnes & Noble College Insights^TM. The national online survey of current undergraduate students who attend a 4-year college or university had 1,067 respondents and was fielded in April 2026.

SOURCE College Ave