Most families use a mix of parent savings, financial aid, scholarships and student loans to cover college costs, rather than relying on one person or funding source to pay for everything. A 2024 study found that 36% of parents intend to cover the full cost, while 64% expect their students to contribute to some extent. The key is having the conversation early, understanding your financial aid options and building a plan that minimizes unnecessary debt for everyone involved.
The debate of whether the parent or the child will pay for college 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 exploring options to lower 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 can be emotional, especially if it's your child's first time living on their own. It also raises a big question for families: How will you pay for college, and who will be responsible for the cost?
A recent Citizens survey found that 59% of parents felt confident managing college costs when their child was accepted, but only 21% felt fully prepared once the tuition bill arrived. As tuition and related expenses continue to rise, covering the full cost of college can be challenging for many families, even with financial aid.
How you and your family approach this topic is entirely a personal decision. It helps to know your options though. "Knowledge is power," says Ann Lague, a Senior Vice President of Student Lending at Citizens. "The true cost of college varies based on several factors, and there are many types of financial aid, including grants, scholarships and loans."
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 few students pay full 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 the following 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. For the most accurate and up-to-date information regarding federal student loans, visit studentaid.gov.
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 expenses and may offer tax advantages, including the potential for federal 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.
Consider exploring 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
Shortly after your child receives acceptance letters, they'll start receiving financial aid offers. These letters highlight how much the school is offering them to attend. These letters will vary, both in format and in monetary amount.
Compare these offers 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 option. 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
If you and your child have exhausted other financial aid options, you may want to consider private loans from financial institutions such as banks and credit unions. Some have parent loans that are competitive with federal Parent PLUS loans.†
Before your child considers private loans, it's generally a good idea to exhaust federal student loan options first. Federal loans may offer lower interest rates and more flexible repayment options than private loans. If your student does need a private loan, keep in mind that you may need to cosign, since most lenders require proof of income and a credit check.
Frequently asked questions
Should parents pay for all of college?
There is no single right answer. How your family approaches this depends on your savings, financial aid eligibility and personal values. Many families find a combination of parent savings, student loans, scholarships and part-time work is the most sustainable approach.
When should families start the college cost conversation?
Start the conversation early, ideally before your student begins applying to schools. Discussing who will pay, how much debt is acceptable and what options exist gives both parents and students time to make informed decisions about which schools are financially realistic.
What is the FAFSA and why does it matter for paying for college?
The Free Application for Federal Student Aid (FAFSA) is a form that colleges use to determine financial aid packages, including federal loans, grants, work-study and institutional aid. Many schools also require it for merit-based scholarships. Almost all college-bound students need a parent to act as a contributor on the application.
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: 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. †