College is one of the most significant financial investments many families will ever make, and in 2025, it’s more important than ever to plan ahead. You’ve likely seen it in the news, but it’s worth repeating: the average cost of college from 2018 to 2023 increased by nearly seven percent. This has difficult implications for the average college student, as while tuition rises, they are also experiencing overall spikes in the cost of living, with everything from food to entertainment increasing in cost.
With rising tuition, ongoing student loan challenges, and new policy updates affecting education savings, families must be proactive, informed, and strategic. In this post, we break down the latest college cost data, explore how student loans are impacting borrowers, and highlight tools like 529 plans that can make higher education more affordable.
The Real Cost of College in 2025
Sticker prices for higher education have continued their upward climb.
According to LendEDU, here’s what families can expect for the total cost of attendance:
- Public In-State (4-Year): $29,910
- Public Out-of-State (4-Year): $49,080
- Private Nonprofit Colleges: $62,990
These totals include not just tuition, but room and board, books, fees, and transportation. There are expenses that can often double the “sticker price” parents see on college websites.
And now that pandemic-era loan forbearance has ended, many borrowers are facing renewed financial strain:
- More than 10% of student loans are 90+ days delinquent.
- Millions of borrowers have seen their credit scores drop by 100 points or more, making future financial steps like buying a home even harder.
The Hidden Costs: Living Expenses for College Students
While tuition, fees, and textbooks are the most obvious college expenses, the cost of living, including food, entertainment, transportation, and personal expenses, can quickly add up and catch families off guard. These costs often vary significantly depending on the school's location, whether students live on or off campus, and personal lifestyle choices. According to Think Impact, the average student spends over $14,435 per year on living expenses alone.
For students attending college in urban areas or on the coasts, expenses such as groceries, restaurant meals, rideshares, and rent tend to be higher. Even in smaller college towns, inflation has driven up the cost of groceries and dining out. According to Bureau of Labor Statistics data, grocery prices increased by over 5% year-over-year in 2024, while eating out rose by nearly 6%, making meal budgeting a growing challenge for students. Other recurring costs include streaming services, gym memberships, laundry, personal care products, and school supplies not covered by tuition.
What Families Should Consider Now
Here are 5 proactive steps parents and students can take in September 2025 to manage college costs:
- Calculate the Full Cost of Attendance
Don’t just focus on tuition—include books, food, transportation, tech, and fees. Use actual school estimates when available. - Max Out (or Start) a 529 Plan
The earlier you start, the better. Even small contributions add up, and tax advantages make these plans more valuable than standard savings accounts. - Understand Your Student Loan Options
Know the difference between subsidized vs. unsubsidized loans, income-driven repayment plans, and deferment options. Don’t borrow more than you can reasonably repay. - File the FAFSA Early
The Free Application for Federal Student Aid opens in October. File early to qualify for the most aid—especially need-based and institutional scholarships. - Talk to a Financial Advisor
Navigating college costs is more complex than ever. A financial advisor can help you integrate college savings with retirement planning, debt management, and overall wealth-building strategies.
Final Thoughts
College is an investment in your child’s future and in your family’s financial journey. The best way to manage rising costs and avoid unnecessary debt is through education, early planning, and strategic use of the tools and resources available to you.
As the 2025–2026 school year continues, the best time to act is now.
Have questions about how to prepare? Contact the team at LPSC Financial to get personalized guidance on college funding strategies and long-term financial planning.