Report: Cost Is Most Important Factor For Students When Deciding to Enroll
By Maria Carrasco, NASFAA Staff Reporter
While adults continue to link college degrees to career success, cost remains an important factor for students when they select an institution, and many adults don’t believe students have access to quality, affordable education after high school, a new report from the Gallup and Lumina Foundation found.
The State of Higher Education, an annual report from Gallup and Lumina Foundation, surveyed over 14,000 U.S. adults from ages 18-59 who do not have a college degree who either are currently enrolled students, stopped-out adults who were previously enrolled at an institution or certification but did complete it, and adults who have never enrolled in a degree or program.
The survey aims to measure these adults’ attitudes toward education and training after high school, their interest in pursuing a degree or credential, the barriers they face to enroll or complete a program, and the experience of currently enrolled students.
Additionally, for this year’s report, Gallup and Lumina Foundation surveyed 5,933 college graduates who earned an associate or bachelor’s degree and 2,000 employers.
The report from the organizations offered six key findings related to how adults view the value of higher education, the motivators and barriers for staying enrolled in a program, and the financial realities of college.
Nearly three quarters, 73%, of adults without a college degree and 69% of college graduates say earning a two- or four-year degree is at least as important today as it was 20 years ago. Only 28% of adults without a college degree and 31% of college graduates said earning a two- or four-year degree is less important today than 20 years ago. Additionally, 74% of employers say it is important to have a college degree or credential to get a good job at their organization in the next five years.
When looking at the interest in pursuing higher education, 58% of adults without a college degree say they have considered pursuing a degree or credential in the past two years. Specifically within this finding, adults who have stopped out have a higher interest in returning to higher education, at 69%, compared to those who have never enrolled, at 43%.
The biggest motivator why adults without a degree consider enrolling, or choose to remain enrolled, in a program is the expected job opportunities. For students currently enrolled, 67% said expected job opportunities is the higher motivator, compared to 63% of stopped-out adults, and 57% of adults who never enrolled into a program.
And while U.S. adults see the value in higher education and have interest in pursuing it, only 25% of adults without a degree or credential say all or most people in the U.S. have access to quality, affordable education after high school. Specifically, 41% said not too many or no adults have access to affordable and quality education. That view has a 4% increase from 2025’s report, and 7% increase from 2024’s report.
Specifically for students who are currently enrolled, the survey found that proximity to home, the cost of college, and financial aid were the most important factors when deciding which program to enroll in.
“Americans haven’t lost faith in the value of college, but they’re increasingly unsure they can afford to take part,” Courtney Brown, vice president of impact and planning at Lumina Foundation, said in a statement. “That gap between belief and access should be a wake-up call. We need to make sure higher education is not only worth it, but within reach for everyone who wants to pursue it.”
The survey also looks at reasons why currently enrolled students may consider stopping out of their degree or program. The biggest reasons were emotional stress, personal mental health, the cost of a degree or program, and feeling like they don’t belong.
Looking at survey results among borrowers with outstanding student loans, many shared worries about repaying their student loans. Overall, 40% said that they are very worried they will struggle to make payments on their student loans, and 42% said they were moderately worried.
And among the surveyed college graduates who took out loans, roughly half have reported delaying at least one major life event because of their student loans – specifically, 49% of those with an associate degree and 53% of those with a bachelor’s degree. The surveyed individuals reported delaying events such as saving for retirement, getting another training or degree, buying a home or car, having children, and more.
Gallup and Lumina Foundation conclude that Americans have not lost faith in higher education, but there are significant barriers for many to attain a degree, certificate, or credential.
“The case for a college credential has already been made,” the report reads. “What remains unfinished is the work of making that credential attainable. That means lowering the financial barriers that shape enrollment decisions before students ever set foot on a campus; strengthening the academic, financial and mental health supports that keep students enrolled once they arrive; and addressing the debt burdens that follow graduates long after they leave.”
Publication Date: 6/4/2026
Jeff A | 6/4/2026 3:58:48 PM
Nedi, I love the disclosure for the 2nd -4th years. That is commendable.
However, when the median time to complete a BS is 5.8 years per the Clearinghouse reserach, that 5th, 6th, 7th and more years is where it all goes off the rails. Grant aid runs out, institutional aid often ends at 4 years, as well as other assistance. The data i've seen is college costs 40% more than families are expecting and planning for, and most of that is driven by the actual time it takes to complete a program. Many '4-year degrees' can even be completed in 4 years due to course availability, etc.
Nedi G | 6/4/2026 11:58:03 AM
Not sure that's true accross the board, Jeff. Your brush may be a little broad.
See standarized NYS award letter that's been mandatory since 2015. Additionally, we send out a student specific customized FA package in a 3 minute video format explaining eveything in detail.
https://www.downstate.edu/education-training/student-services/financial-aid/_documents/shopping_sheet_default.pdf
Jeff A | 6/4/2026 11:31:52 AM
None of us are providing accurate information on the total cost paid for their programs. In fact, it is highly unlikely any college can actually tell you the median cost paid for a program by the prior year's graduates.
Additionally, none of us are telling prospective students what the median time is to complete a program, nor the completion rate for a program.
That should change soon, however, when the STATS regulations being promulgated through teh AHEAD effort are final.
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