(BPT) - As your child prepares to say goodbye to high school and hello to college, you probably have a lot on your mind — including concerns about paying for their higher education. While it's an exciting time for your family, it can also be stressful, especially financially.
In a recent survey from College Ave, nearly 90% of parents said that they help or plan to help their child pay for college, and over two-thirds were confident they had a good financial plan. Parents were most commonly using their income and savings to help fund their child's education, along with grants and scholarships through the financial package offered by their child's school.
"Most parents don't realize that paying for their child's education typically comes from a combination of different sources, not just one," explained Angela Colatriano, chief operating officer at College Ave. "Understanding how to find and maximize all available funding and borrowing options can help families approach these expenses with more confidence."
To help parents understand their financial options, including recent changes to federal student loans, Colatriano offers the following advice for families of college-bound students.
The Free Application for Federal Student Aid (FAFSA) is key to determining your child's eligibility for federal and state aid and can also help them receive school-based grants or scholarships. Because some aid is awarded first come, first served, the sooner you fill it out, the more opportunities your child may have. In fact, students whose families file the FAFSA sooner receive more grants on average than those who file later. Visit FAFSA.gov to get started.
Save money now and review spending habits
Whether you've been saving money since your child was born or started saving more recently, it's never too late to set money aside. Many states offer a state income tax deduction or tax credit based on contributions to that state's 529 college savings plan (and in some states, for contributions to any state's 529 plan). Check your state's 529 plan information at CollegeSavings.org.
Establish a household budget, if you haven't already. Take a good look at your family's spending. Any potential reductions can help you save more toward college expenses. While some may be fixed expenses (like mortgage, utilities, insurance), other areas can be trimmed to boost savings, like entertainment and vacations.
Compare financial aid packages
Once you receive financial aid packages from schools, review the mix of financial aid being offered. Consider the balance between scholarships and grants (that do not need repayment) versus loans. Also weigh not just tuition, room and board, but expenses like transportation to and from school, plus the cost of living in that area (which matters if a student moves off campus).
Discover all possible resources
Your child's high school guidance counselor and financial aid offices in schools where they've applied can provide assistance when you're researching college costs and have information about funding sources like scholarships and grants. For example, college websites often provide a net price calculator to estimate the cost of a year of college. Feel free to reach out and ask questions; that's what guidance counselors and financial aid offices are for!
Do online and local scholarship searches
Continue searching for scholarships and grants throughout the application process, and after your child is accepted at schools. Check websites like Fastweb, Scholarships.com, the College Board's BigFuture and CareerOneStop, among others. You may also find opportunities through local community or civic organizations, your employer or your state's education department.
You and your child can also enter to win a $1,000 scholarship at CollegeAve.com/scholarship. A new winner is randomly selected each month to help with college costs.
Understand current federal student aid options
Federal student loans are recommended as one option when borrowing for school, as they typically have lower interest rates. Recent legislation has changed some aspects of student aid and borrowing that you should know about. Two major changes in the "One Big Beautiful Bill" (OBBB) passed in July 2025 are:
- Pell Grants can be now used for non-degree programs: Pell Grants are a form of gift aid, meaning they don't have to be repaid (unlike student loans), and they're specifically designed for low-income undergraduate students. The OBBB made one major change: Starting July 1, 2026, students can use Pell Grants for short-term work training programs like electrician or forklift certification courses.
- Parents will have federal loan limits: Parents of undergrads can use Parent PLUS Loans — a type of federal student loan — to borrow money for their child's education. In previous years, parents could borrow up to 100% of the total cost of attendance for each of their children, but under the OBBB, new parent borrowing is restricted. For the academic year beginning July 1, 2026, parents borrowing for the first time will be limited to $20,000 per year per student, with an aggregate or lifetime limit of $65,000.
If the financial aid your child receives falls short of what's needed, private student loans — like those from College Ave — can help make up the difference. To understand what borrowing might look like, use College Ave's student loan calculator to explore your repayment options and estimate future monthly payments.
Find more information on financing your child's education at CollegeAve.com.
