Parents of college-bound students: How to manage the costs

(BPT) – Looking forward to your children’s college journey? It’s an exciting time, full of possibilities and dreams for the future, but it also has some challenges. Recently, inflation across the board — including tuition, room and board, and more — is impacting how families plan to fund this key investment in their child’s future. In a recent College Ave survey, over half of parents of undergraduates (57%) said inflation was affecting their financial planning for college, and 62% said college costs were more than their family anticipated.If this sounds daunting, the good news is there’s a path forward. To help you plan, learn how other parents are coping with increased expenses, balancing their financial goals and uncovering multiple resources to help pay for college.Parents remain committed to their children’s educationOne key finding from the College Ave survey was that 88% of parents believe college is a crucial investment for their child’s future, and nearly all (94%) reported helping or planning to help pay for college. The most common plan for parents helping to fund their child’s education was combining several sources, including their regular income and savings (64%) plus grants and scholarships (61%), 529 accounts (43%), federal student loans (41%), their child’s job (36%) and other sources, including private student loans. Among those who said they helped pay for college, 2 in 3 were confident they had a good plan in place.To cope with increasing expenses while working toward this important goal, many parents are reassessing their own financial goals. Most parents said they’d saved money for their child’s college education (73%), and among those who saved, over half felt comfortable with their current savings (57%), but 29% did not. Because of the addition of college expenses on their finances, parents planned to cut back on day-to-day expenses, delay big purchases and prioritize their child’s education over their own savings goals.Start with the FAFSA Your family’s first step toward accessing financial resources is going to studentaid.gov to fill out the 2025-2026 Free Application for Federal Student Aid (FAFSA), which opened Dec. 1. Many vital financial resources, including federal grants and loans, state grants, plus some school-based aid, are based on this form.According to the College Ave survey, 87% of parents filled out the FAFSA last year, with those 13% who didn’t fill it out opting to do so overwhelmingly because they felt their income was too high to receive financial aid.The “new” FAFSA which rolled out last year is reported to be even faster to complete than the previous form. In 2024, 8% said they received more aid compared to previous years, while 19% reported receiving less. However, it’s difficult for any family to know how much aid — federal student loans, grants or scholarships — they’ll be eligible for without completing the form.Apply to several schools How many schools are students applying to, and why? The survey discovered that students applied to an average of six colleges/universities, based on several different criteria. The top factors affecting their final school decision included available majors (57%), campus environment (54%) and the school location (51%).Applying to multiple schools widens the opportunity for different financial aid packages. Over half of the parents of freshmen students surveyed (51%) said the financial aid they received varied greatly by school, so it can benefit your family to keep more options open.Explore financial resources To expand funding sources, you and your college-bound student need to do some legwork (mostly online, that is). The survey revealed that 65% of parents said finding scholarships for college was difficult, and 60% wished for more resources to help their family plan and pay for college. The truth is, many scholarships offered by companies, community groups, non-profit organizations, state education departments and employers go unclaimed each year, so it’s up to your family to find them.Start with your child’s high school guidance counselor, your employer and your child’s employer (if they have one) to ask about scholarships, but don’t stop there. Check community organizations, your state’s Department of Education, local foundations, civic groups and associations connected with your family’s background and interests. Many online scholarship sources can match your child to appropriate scholarships. One easy, no-essay scholarship you can also apply for is from CollegeAve.com/scholarship — a new winner is selected each month.Your family may also benefit from a private student loan to help bridge the gap between financial aid your child receives and their expenses. Visit CollegeAve.com to discover flexible loan options that can help your family breathe a little easier. Their website also provides helpful tips and information to help you plan and pay for college.With all these resources, you can put together the funding your child needs to achieve their education, helping them on the road toward their future goals.