Who will pay for college?

The debate of who will pay for college – the parent or the child — is a long standing one. With ever increasing college tuition costs, the federal student loan debt is $39,075 per borrower on average as of 2025. If you include private loans, it could be as high as $42,673. Having the conversation of who will pay for college and their options for lowering the expense can save your child from unnecessary student debt, setting them up for educational and financial success. Here’s a look at what you need to know.

Who should pay for college?

Preparing for college is an emotional steppingstone of life for you and your student. This is likely the first time your child will live on their own. And one thing that’s on both parents and students’ minds during this time? How to pay for college – and who should pay for it.

A recent study found that 36% of parents intend to pay the full cost of their child’s college expenses, and 64% expect their students to contribute to some extent. However, with rising tuition costs year-over-year, paying for the full cost is becoming a tall order, even with financial aid packages.

How you and your family approach this topic is entirely a personal decision. It helps to know your options though.

Having the conversation about debt

Start the conversation about paying for college early. Before accepting a financial aid package from a college, it’s important that both you and your student understand the details behind student debt and the responsibilities that come with it. For most kids, it will be the first time they’re going into debt so they’ll be relying on you for advice.

Start by:

• Calculating how much your child is likely to owe at their top choice colleges using net price calculators. These tools take into account how much financial aid your child is likely to be offered – including how much debt.
• Creating a budget based on income levels for entry-level jobs in their desired field, accounting for rent, utilities, and other expenses.
• Adding in the student loan payments. Highlight how long they’d be paying that money back for and how much they’d pay in interest over the long run if they’re only meeting the minimum. You can take it a step further and find what salary they’d have to earn to comfortably repay the loans.

This simple lesson can shine a spotlight on just how much student loan debt can cost over time, and whether taking the loans out to attend one particular school is worth it.

How can parents help pay for college?

Sticker prices can scare families off of "expensive" colleges, but the fact is – students rarely pay sticker price. Instead, financial aid comes into play, and parents and students often have more than one route when it comes to paying for college, including these options.

1. Complete the FAFSA

One of the most important steps you can take when your student is preparing to go to college is completing the Free Application for Federal Student Aid (FAFSA) with them. Colleges use the FAFSA to determine financial aid packages that can include federal loans, grants, work-study eligibility, institutional aid, and more. And it's not just for students who demonstrate financial need – many schools also require the FAFSA for their merit awards.

Almost all college-bound students need a parent to act as a contributor on their application. Student loans will be the student's responsibility, but parents can take out Direct PLUS loans up to the cost of attendance if they pass a credit check.

Keep in mind that a few select colleges and universities ask for the CSS Profile as well. Although similar, it asks for more in-depth financial information.

2. Open a 529 plan

If your child is still young, a 529 plan can be part of a long‑term college savings strategy. A 529 plan is an investment‑based education savings account, meaning contributions are invested in available investment options and are subject to market risk. These accounts can be used for qualified education‑related expenses and may offer tax advantages, including the potential for federal tax‑free earnings and state tax benefits, depending on the plan and state. Investment options vary by plan and carry varying levels of risk. You are not limited to opening a 529 plan in your own state, and comparing different state plans may help you identify features that align with your family's needs.

Explore other great early college savings options that could work for you, like Coverdell ESAs, custodial accounts, and more.

3. Apply for scholarships

Make sure your college-bound student is applying for scholarships! Often referred to as gift aid, scholarships are a fantastic way to make a dent in education costs. In fact, some can provide a full ride. There are even awards and sweepstakes parents can apply for.

Look into state grants with your child, too. Depending on your state, your student may be automatically considered for the awards when they apply to a school. Others require a separate application or other steps.

4. Compare financial aid offer letters

With or shortly after your child receives acceptance letters, they'll start receiving financial aid offers from their colleges. These letters highlight how much the school is offering them to attend. These letters will vary, both in format and in monetary amount.

Compare them to identify the best deal for your family. While one school might be offering less than another, that school might have a lower overall cost of attendance making it the better deal of the two. It's not always clear which college makes the most financial sense until you really dig into the numbers and what they mean.

5. Consider private loans and other options

Private student loans or parent loans

If you and your child have exhausted other financial aid routes and May 1 (College Decision Day) is approaching, you may want to consider private loans from financial institutions such as banks and credit unions. Some have parent loans that are competitive with Direct PLUS loans.

However, you should exhaust federal student loans before your child takes out private loans. Federal loans tend to have lower interest rates and more repayment options by comparison. Keep in mind that you will likely have to co-sign private loans for your student, as most require proof of income and a credit check.

Other options

If you still want to take on sole responsibility to pay for your child's education but lack the extra cash, you could consider:

• tapping into your retirement account
• assuming debt in the form of a home equity loan

Before you consider these "other" options, talk to your financial advisor to see if they make sense for your situation. And, if you have more than one child, remember not to overextend yourself on your oldest.

Ready to take the next step?

Citizens is here to help you and your family navigate planning and paying for college. Head over to Citizens Student Hub with your student to explore all the ways you can make college more affordable—like getting good grades, writing standout admissions essays, applying for scholarships, and so much more.

Ready to send them to college but need to fund the gap? Check out our student lending options for today and the future. Make sure to visit our Student Lending page — we're on chat.