For many families, sending a child to college comes after years of planning and saving. A recent College Ave survey of 1,000 parents of current college students, conducted by Barnes & Noble College Insights™, found that nearly three out of four parents had already set aside money for their child’s education. Most parents, 94%, plan to help cover college costs in some way.
Even with planning, the full cost of college often comes as a surprise. Less than half of families had a plan to cover the entire expense. About 27% found their child attending a school outside the family’s initial budget. Around two-thirds were surprised by tuition and fees, and a similar number underestimated the cost of room and board. Even school activity fees and personal expenses caught about four out of ten parents off guard.
When the first tuition bill arrives, families are often actively figuring out how to cover both expected and unexpected expenses. Borrowing is a part of that solution for nearly half of parents. The survey found the following methods among parents who currently help or plan to help pay for college:
- Federal Student Loans: 41%
- Parent Loans: 18%
- Private Student Loans: 16%
On average, parents using federal or private student loans plan to borrow $40,225 for their child’s college education. Parents taking out Parent PLUS Loans are willing to borrow, on average, $62,885.
Dan Kennedy, Chief Marketing Officer at College Ave, noted, “Parents do a remarkable job supporting their children and planning for their future. Borrowing can be a crucial piece of the financial puzzle, which makes it important to take a thoughtful approach to loans.”
Tips to Make Tuition Bills More Manageable
Whether it’s your first child’s freshman year or you have experience paying for college, there are ways to make borrowing less stressful and more strategic.
Compare lenders
Take time to explore multiple lenders. Look for competitive rates and flexible repayment plans that fit your family’s budget. Read reviews, ask for recommendations, and choose a lender you trust.
Use a student loan calculator
Fewer than two-thirds of parents reported they understood their monthly repayment amount before borrowing. Using a student loan calculator can help estimate monthly payments and total loan costs, making it easier to plan.
Consider a cosigner
For private student loans, having a cosigner with good credit can help secure a lower interest rate, potentially saving thousands over the life of the loan.
Keep searching for scholarships
Half of families wish they had spent more time looking for scholarships. Remember, you can apply throughout your child’s college career, not just before freshman year. Quick and easy options, like the ongoing $1,000 Scholarship Sweepstakes from College Ave, are a good place to start.
Talk about cost-saving strategies with your student
Ensure your student stays on track to graduate on time. Every extra semester adds thousands of dollars to the total cost. Accelerated paths, like summer courses, can reduce overall expenses.
Important Changes to Parent PLUS Loans
Starting July 1, 2026, the OBBB Act will make major changes to Parent PLUS Loans for students beginning a new program:
- Loan Limits: Parent PLUS Loans will be capped at $20,000 per year and $65,000 in total per student. Previously, parents could borrow up to the full cost of attendance minus other aid.
- Fewer Repayment Options: Parents with new loans will have only two repayment options: a standard plan and a new Repayment Assistance Plan (RAP). Income-driven repayment plans and Public Service Loan Forgiveness will no longer be available for these loans.
- Legacy Provision: Parents who have already borrowed for a student enrolled before July 1, 2026, can continue under the old rules for three more years or until the student finishes their program.
Actionable Advice for Parents
Plan Ahead
With the new loan limits, families may need to explore alternative financing options, such as private loans, or adjust college choices to manage potential funding gaps.
Communicate
For divorced or separated parents, communication is critical to determine which parent provides financial support and to ensure the FAFSA is completed accurately.
Seek Professional Judgement
If your family has special circumstances, such as job loss or high medical bills, you can petition the college’s financial aid office for a professional judgment review to adjust your aid package.
Paying for college is rarely simple, but planning, thoughtful borrowing, and open communication with your student can make a big difference. Understanding new regulations, using tools to estimate payments, exploring scholarships, and keeping graduation timelines in mind will help your family manage costs effectively.
With the right approach, you can turn what feels like a financial challenge into a manageable plan, giving your student the support they need while keeping your family’s finances on track.
For families piecing together how to cover the first few tuition bills, College Ave offers helpful resources, calculators, and guides. For more information on how to plan and pay for college, visit collegeave.com.
