Students are making practical decisions to manage their college expenses, study finds

POSTED ON Mar 31, 2025

Education beyond high school continues to provide access to good jobs and higher salaries. However, rising costs and outdated programs are undermining public trust in higher education.

According to the Lumina Foundation’s 2025 State of Higher Education study, conducted in collaboration with Gallup, most Americans believe that college is too expensive; yet, they still consider it worthwhile.

While only 18 percent of adults without degrees believe that the costs of a four-year college degree are reasonable, 70 percent think that earning a degree holds significant value.

It is time for higher education to adapt by lowering costs, aligning programs with available careers, and offering more flexible options. The belief in the value of a college education remains strong.

As educational institutions take proactive steps to make college more affordable, researchers at Excelencia in Education, with the generous support of the Lumina Foundation, have released an insightful brief on national trends regarding how students finance their college education.

This report is based on decades of research, shedding light on student experiences and the lessons learned from institutional leadership.

The findings reveal that many students are making practical decisions to manage their college expenses effectively. They actively seek various forms of financial aid to reduce costs and pursue their education.

For instance, the study highlights that students often work 30 hours or more per week while attending school, enrolling part-time, or transferring between colleges to meet their academic needs.

Many choose to attend more affordable public institutions near home, live with their parents, or opt for off-campus housing. Furthermore, they adeptly leverage grants rather than loans, favoring federal financial aid as a primary source of support.

Institutions are making remarkable progress in ensuring that higher education remains accessible and affordable. Seal of Excelencia-certified colleges are implementing strategies designed to alleviate financial burdens for students.

These initiatives not only enhance access to education but also provide critical financial support to both Latino students and the broader student community.

Some noteworthy strategies include aligning institutional aid to address unexpected financial challenges, offering paid internships and on-campus job placements, supplying support services that guide students in making informed financial decisions, and providing Open Educational Resources (OER) to reduce costs associated with course materials.

Moreover, these institutions offer full-tuition scholarships to students from families with incomes at or below a specific level.

By simplifying access to aid through coordinated admissions and financial aid processes between two-year and four-year college partners, they are fostering a supportive environment for all students.

They benefit from best practices that harness what works to accelerate success for students at all levels, informed by policymakers’ efforts.

This study, authored by Arroyo, C., Labandera, E., & Santiago, D. (March 2025), titled “How Latinos Pay for College: 2025 National Trends,” serves as a valuable resource for understanding the evolving landscape of college affordability.