Sallie Mae and Ipsos released the "How America Pays for College 2026" report on August 12, 2026, revealing that the vast majority of American families continue to prioritize higher education despite rising costs. The survey, conducted between April 22, 2026, and May 26, 2026, among 1,000 undergraduate students and 1,000 parents, indicates strong consumer confidence in educational spending.

Spending Trends and Funding Sources

Families reported an average expenditure of $34,019 on college during the 2025-26 academic year, an increase from $30,837 in the prior year. Despite this rise, 52% of families stated they paid less than the full advertised sticker price. Family income and savings remained the primary funding source, covering 49% of costs. Scholarships and grants accounted for 27%, while parent and student borrowing covered 22%. Contributions or gifts from family or friends made up the remaining 2%.

Planning and Decision-Making

Confidence in financial decisions remains high, with 84% of families asserting they made the right choices to pay for college. Regarding school selection, 89% of families reported confidence in their choice, and 66% of students were the primary decision-makers. Price (40%), proximity to home (39%), and academics (38%) were cited as nearly equal priorities. Notably, 79% of families eliminated at least one school option based on cost during their decision-making process.

Borrowing Behavior and Policy Views

Borrowing remains a significant component of college financing for nearly half of households. 47% of families reported borrowing to pay for college, with 68% of those borrowers stating it was always part of their plan. For 38% of borrowing families, debt enabled them to consider higher-cost institutions. On policy, 66% of families support limits on federal student borrowing, and 58% believe unlimited federal lending has contributed to rising college costs. However, only 13% of parents expressed concern about navigating new limits on federal student loans.

FAFSA Completion and Scholarship Misconceptions

FAFSA completion rates improved slightly, with 74% of families reporting they completed the Free Application for Federal Student Aid, up from 71% last year. Among completers, 81% found the process easy, compared to 72% previously. However, awareness gaps persist: only 25% of families know the FAFSA opens in October, potentially causing them to miss first-come, first-served aid.

Scholarship utilization stands at 61%, but misconceptions hinder broader access. Among families who did not use scholarships, 74% did not apply at all. Key barriers include the belief that scholarships are only for students with exceptional grades or abilities (48%) or only available to incoming freshmen (41%).

What the Numbers Show

The data reveals a divergence between high confidence in financial planning and significant gaps in aid optimization. While 84% of families are confident in their payment decisions, 74% of non-scholarship users failed to apply, driven largely by misconceptions about eligibility. This suggests that while families are financially committed to education, structural barriers and misinformation regarding aid accessibility may be limiting cost-efficiency for a substantial segment of households.

Sallie Mae, formally known as SLM Corporation, has declared a 2026 third-quarter dividend of $1.4393042 per share for its Preferred Stock Series B. The company also announced a dividend of $0.13 per share for its common stock for the same period. These dividends provide returns to shareholders and reflect the company's ongoing financial performance.

Both the preferred stock and common stock dividends are scheduled to be paid on Sept. 15, 2026. To qualify for the payout, shareholders must be on record as of the close of business on Sept. 4, 2026. The record date determines the official ownership of shares for dividend distribution purposes.

Dividend Details

The following table outlines the declared dividends for the third quarter of 2026:

Sallie Mae operates as a leader in private student lending, providing financing and resources to support access to education and lifelong learning. The company and its subsidiaries are not sponsored by or agencies of the United States of America.