College Costs Soar as Families Turn to Early Credits and Face Rising Debt

College costs continue to rise as tuition expenses outpace inflation, pushing more families to seek ways to reduce higher education debt. Between 1995 and 2025, inflation-adjusted tuition and fees doubled at four-year public colleges and increased 74% at private institutions. For the 2025-2026 academic year, average annual total costs reached $25,850 for in-state public students, $45,780 for out-of-state public students, and $60,920 at private colleges.

These escalating expenses mean nearly half of all families borrow money to fund college education. Federal student loan defaults have increased significantly, rising to 9.3 million borrowers by mid-2026 compared to 6.2 million in 2016. On average, parent savings and income cover 39% of college costs, scholarships and grants pay 27%, and student savings cover 10%.

In response, more families are turning to high school dual-enrollment programs, which saw enrollment grow 9.6% year-over-year in spring 2026. Earning early college credit has become a key strategy as families evaluate expensive degrees against a challenging job market where entry-level postings have fallen 35% since January 2023.