In recent years, Americans have become increasingly cost-conscious, cutting back and looking for more options to save where they can. In alignment with inflation and the rest of the economy, the cost of attending college has continuously risen in the past few years. In the 2024–25 academic year, undergraduate families reported spending an average of $30,837 on higher education—a 9% increase from last year’s $28,409, according to new data in "How America Pays for College 2025," the annual study from Sallie Mae® and Ipsos.

Other 2025 report highlights include:

• 60% of families relied on scholarships to help pay for college.
• 75% of scholarship-aided families agreed the funding made it possible for the student to go to college.
• 74% of undergraduate families used parent income and savings to help pay for college, contributing an average of $15,754.
• FAFSA confusion persists, even as the form improves. Completion rates dropped to 71% from 74%.

With rising costs and economic uncertainties such as changes to interest rates, United Brokerage Services, Inc. is sharing updated college saving tips with scholarships, 529 savings, and student loan options for you and your family.

Individual colleges offer various scholarships for students who attend their schools. Beyond those, there are thousands of scholarships available nationwide, specific to academic performance, athletics, and extracurricular activities. Scholarships have also become increasingly available for underrepresented groups. 

There are several new trends in college scholarships that parents and students should be aware of, including:

• Less emphasis on top grades: Many private scholarships prioritize community involvement and a student's unique life experiences over just a high GPA.
• Growing private and institutional contributions: While federal grant funding has recently seen a decline, private scholarship funds from foundations, corporations, and alumni are on the rise.
• Focus on STEM (Science, Technology, Egineering, and Mathematics) and non-traditional students: There is a heightened focus on funding students in the fields of Science, Technology, Engineering, and Mathematics, as well as non-traditional students like older learners and those pursuing vocational or technical degrees.
• Unclaimed scholarship money: Despite the need for financial aid, over $100 million in scholarship funds go unclaimed each year. This is often due to student misconceptions, such as believing scholarships are only for high achievers.
  
  SOURCE
  https://collegeaidpro.com/find-private-scholarships-for-college/

All together, these scholarships award billions of dollars for college expenses annually, easing the financial burden and reducing the amount of debt students need to take on. This is essentially “free money” offered to students that, unlike loans, don’t have to be paid back.

To connect more students and families to scholarships, Scholly—the top scholarship search app—is now free through Sallie Mae. To date, students have won more than $100 million in scholarships through Scholly.

Additional resources for tracking down scholarships and their eligibility requirements are the College Board’s Scholarship Search (brought to you by the nonprofit behind the SAT standardized test for college admissions), https://www.scholarships.com/, and Sallie Mae’s Scholarship Search tool¹.

Lastly, don’t forget to check with local civic organizations that may offer scholarships. Examples in your community include the Rotary, Kiwanis, Lions, and American Legion Clubs.

Deciding how to invest college tuition money depends on your family’s timeline. If you’re sending a child to college this year, counting on fast, significant investment growth is unrealistic. 

However, if you have a longer period of time, investing could be worth considering. Investing is never a bad choice, and you can always use the money long after the graduation caps are tossed. 

United Brokerage Services, Inc. offers a variety of investment options ranging from managed asset plans and 401(k) accounts to mutual funds and municipal bonds. Working with a Financial Advisor at United Brokerage Services, Inc. who understands your needs can get you on the best path toward achieving your college financing goals.

Student loans offer college students access to the money they need to pursue their degrees, typically with substantially lower interest rates than those available for typical consumer loans. Often, the payback requirements for these types of loans are deferred until after the student has completed school. 

Student loans are intended to bridge the gap between scholarships, financial aid, and the amount of tuition you can pay out of pocket.

In the U.S., there are two primary types of student loans — U.S. government-sponsored federal loans and private student loans, which are offered by private-sector financial institutions. Because they typically offer much lower interest rates and defer interest charges and payment requirements, federal loans are generally a much more appealing option for students than private loans. A great place to start your search for federal student loans is the studentaid.gov website, administered by the U.S. Department of Education.

Over half (51%) of bachelor’s degree recipients from public and private nonprofit four-year institutions have student loan debt, with an average debt of $29,400, indicating how necessary loans are for many people. Before taking on any student loan, make sure you’re clear on when your payments are due, what the minimum payment is, when you can refinance to get a lower interest rate, and the interest rate you’re working with. 

SOURCE:
4/8/25 https://www.sofi.com/learn/content/student-loan-debt-statistics/#:~:text=Over%20half%20(51%25)%20of,SoFi%20Private%20Student%20Loan

The One Big Beautiful Bill Act

On July 4, 2025, the One Big Beautiful Bill Act was signed into law, resulting in changes to some federal student aid programs. Some of these changes went into effect immediately, while others will go into effect in late 2025 and beyond.

The law restructures the federal student loan repayment system with new, tighter borrowing limits and dramatically reduced repayment options, which will affect the lives of many of the United States' nearly 43 million student loan borrowers.

The law divides borrowers into two categories based on when they took out their loans. Borrowers with education loans taken out before July 1, 2026, will retain access to some existing plans but lose access to others. Borrowers who take out loans after July 1, 2026, will have fewer options.

Financial assets that are counted when students and parents fill out the 2026–27 Free Application for Federal Student Aid (FAFSA^®) form will now better reflect a family’s financial need. The Act restores exclusions for small businesses, family farms, and commercial fishing businesses.

This change means the Saving on a Valuable Education plan (SAVE), a generous repayment plan enacted in 2023, is likely to be terminated. The nearly 7.7 million borrowers currently enrolled in SAVE have been in legal limbo for months, without interest accruing or required monthly payments.

The U.S. Education Department announced that as of Aug. 1, 2025, SAVE borrowers will, once again, see their balances grow with interest. Because the SAVE plan is still enjoined, though, borrowers won't yet be required to make payments. This means many borrowers, rather than watch their loans balloon, will likely want to move to a different plan.

These are just a few of the changes in college loans in 2025 that borrowers should be aware of and plan accordingly for. Not sure where to start? United Brokerage Services, Inc. has advisors available to help you evaluate your situation and guide you to the best choice for your financial situation.

SOURCES
8/15/25 https://studentaid.gov/announcements-events/big-updates

8/19/2025 https://ticas.org/affordability-2/reconciliation-2025-borrower-faqs/

7/24/25 https://www.npr.org/2025/07/24/nx-s1-5477646/student-loan-repayment-forgiveness-trump