For Many Parents, College Is More Expensive Than They Thought, And Some Can’t Afford It

Many parents helping with their child’s college costs report feeling more confident about their ability to afford tuition and fees when their child was applying to schools, than when they actually got the bill.

In a recent Citizens Bank survey conducted from April to May 2025, 59% of parents were confident about managing college costs when their child was accepted into college. That number fell to 21% when they received the tuition bill.

Additionally, one in five parents said they were focused on getting their child into college and hadn’t considered how to pay for it.

The Financial Aid Process Likely Contributes To Confusion

Many families and students have reported being confused about the first step in applying for financial aid, the Free Application for Federal Student Aid (FAFSA).

This application determines how much in grants and loans students are offered. It can influence students’ decisions about which college they go to or if they go to college at all, according to a 2024 Gallup survey. Yet, one in four applicants said they had difficulty submitting the 2024-25 FAFSA.

Typically, families will receive a financial aid offer letter from colleges before the school year begins. This provides an estimated cost of tuition and other fees, and uses information families put on the FAFSA application to determine the amount of financial aid the student will receive.

However, once families get the actual tuition bill later, it is more expensive than expected. According to a report from the U.S. Government Accountability Office, about 91% of colleges either understate or don’t include the net price of their college in their financial aid offers.

This makes it harder for many families to afford their child’s college costs once the bill is due. About 60% of parents in the Citizens survey said they had to go above and beyond typical financing options, like 529 plans or federal loans, to afford tuition, and nearly three in four parents said they were short by at least $5,000.

“One of the most important pieces of advice we give parents is to understand the real, out-of-pocket cost, the net price, during the college selection process,” said Chris Ebeling, Citizens’ Head of Student Lending.

Higher Costs of Living Make It Harder To Afford College

In addition to confusion about actual prices, more than half of the parents in the Citizens survey said that rising costs of living have compromised their ability to pay for their child’s college.

While it is improving, the U.S. economy has yet to completely recover from the post-pandemic inflation surge, and many consumers still report feeling pessimistic about it.

Two-thirds of parents had to cut back on major purchases or vacations to afford their child’s college education, and 62% said they expected a delay in retirement. Additionally, 19% had to take on a second job, and almost two-thirds said they borrowed against their 401 (k) or liquidated personal funds.