Category Archives: financial planning

How America Pays for College

how america pays for college

Families reported spending an average of $30,837 on college during the 2024–25 academic year—up 9% from $28,409 last year and a return to pre-pandemic spending levels, according to “How America Pays for College 2025,” the annual study by Sallie Mae and Ipsos. Family income and savings covered nearly half of costs (48%), followed by scholarships and grants (27%), borrowing (23%), and contributions from family or friends (2%).

For more detailed information beyond the graphic above, you can download the full report here.

Private Student Loans: A Smart Option for Parents Bridging the College Funding Gap

private student loans

For many families, even after financial aid, scholarships, and federal loans are applied, there’s still a gap between what college costs and what’s covered. That’s where private student loans can be a helpful solution. While they often get a bad reputation, private loans can be a valuable tool for parents who want to support their child’s education—especially when used thoughtfully and strategically.

The Benefits of Private Student Loans

  • Closing the Funding Gap: Private loans allow families to cover costs that federal loans and savings can’t. This ensures your child doesn’t have to compromise on the right school or program simply because of finances.
  • Potentially Lower Rates: Parents with strong credit can often qualify for competitive, even lower, interest rates compared to federal Parent PLUS loans. This can save significant money over the life of the loan.
  • Flexible Amounts: Unlike federal loans, which have borrowing limits, private loans often allow you to borrow enough to cover the full cost of attendance.
  • Fast Processing: Many private lenders offer quick approvals and disbursements, which can ease the stress of looming tuition deadlines.
  • Customizable Repayment Options: Some lenders offer a range of repayment plans, including options to make interest-only payments while your child is in school, helping keep balances manageable.
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The Rise of the 3-Year Degree: What You Need to Know

3-year degree

If you’re the parent of a college-bound student, you’ve probably had a few sleepless nights wondering: How are we going to afford this? Between rising tuition, student loan anxiety, and the pressure to launch into the workforce quickly, the traditional four-year degree may feel out of step with today’s realities.

Fortunately, a growing number of colleges and universities are now offering a faster, more affordable option: the three-year degree.

Here’s what’s behind the trend—and how to tell if it might be a smart fit for your teen.

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Navigating Tough College Decisions: A Parent’s Guide

tough college decisions

Choosing a college is one of the biggest decisions your student will make, but as a parent, you play a crucial role in guiding them through the financial and logistical challenges that come with it. What happens when your child’s college plans don’t match your budget or comfort level? Let’s tackle some common concerns and explore ways to navigate these tough college decisions with your student.

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Understanding the Nuances of Applying for Financial Aid

Navigating the financial aid process can feel like wading through a maze of forms, deadlines, and unfamiliar terms. It can seem overwhelming for many parents, especially first-time or first-generation college families. But with a little guidance, you can make a significant difference in your student’s ability to afford college. Let’s break it down step by step to help you confidently tackle the process.

1. Know the Key Financial Aid Forms

The first step in applying for financial aid is understanding the forms you must complete. The most common ones include:

  • FAFSA (Free Application for Federal Student Aid): This is the gateway to federal grants, loans, and work-study opportunities. Many states and colleges also use FAFSA information to determine their aid packages.
  • CSS Profile: Some colleges, particularly private institutions, require this additional form to award institutional aid. It digs deeper into your family’s financial situation than the FAFSA.

Make sure to check the requirements for each college your child is applying to and note whether they require just the FAFSA, or both forms.

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The True Cost of College

Starting college is exciting. It’s a chance to learn, meet new people, and prepare for your future. But along with the excitement comes a long list of costs. College can feel expensive fast. Luckily, by understanding the key expenses and planning ahead, you can handle them without too much stress. Here’s a breakdown of what to expect and how to manage the college costs.

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Tips for Finding the Best Student Loan

For many students across the country, taking out a student loan is the only way they can afford to get the education they want and need.

While other options, like scholarships or financial aid, are available for students meeting the criteria for others whose parents can help them or can’t cover the entire four-year tuition, student loans can bridge the gap and are a necessary evil.

However, not all student loans are the same. Understanding the financial agreement you’re signing up for and knowing how to find the best student loans can empower you, giving you the control to avoid some of the common pitfalls of student loans and make more informed decisions. So here goes.

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Are You Worried About Paying for College?

paying for college
Image from Pixabay

As a parent, I would say paying for college was on my top 10 lists of worries as my children entered high school. We were caring for my elderly father and great aunt, along with battling with breast cancer. It was all we could do to stay afloat with medical and elder care expenses breathing down our necks every month.

My son was looking at a military career, but I knew he wanted to go to college. He also knew that we could not afford to contribute. My daughter was two years behind him, and I knew she had her heart set on Boston University, an expensive private college in the northeast. I worried day and night that her dreams would not materialize, and my son would have few options other than joining the military out of high school.

My children were not first generation students. However, I did not attend college, and my spouse attended a local college that basically accepted anyone who applied. I was lost. My circle of friends were not college graduates and were not encouraging their kids to apply to college. My parents did not encourage me to attend college, so I was clueless about the process. I had no idea where to turn for help and the school counselor was responsible for hundreds of students at a large public high school. She had little time to advise students about colleges and even less time to help with figuring out how to pay.

Dealing with all the family drama and concerned about finances, my son made the decision during his junior year to join the Marines. I was supportive but worried the decision was forced on him because he felt he had no other option. The day he signed a letter of intent, I decided to focus the next few years on my daughter’s dream—attending college.

I knew I had to research colleges, look at finances, and make sure she had a stellar academic and extracurricular record to back up her applications. When she entered her senior year, we had a plan. Here’s what we did:

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Back to School Bundle Sale

back to school

Ah Back to School…. 

It’s a million degrees outside and the aisles at the store are crowded and bare of the exact supplies your student needs to start the year.

You want to set you and  your student up for the best possible school year, but are finding overwhelm at every turn. They are sold out of the twin XL dorm sheets your daughter had her heart set on. Your son wants to visit every college on the west coast and the east coast and all the ones in the middle as well. You found out you were supposed to keep your “Band Mom” t-shirt from last year, but you painted your fence in it and now….

Or maybe you are taking your baby to college and are wishing with all your might you could wear that ratty “Band Mom” t-shirt in the concession stand just one more time.

Feeling your frenzy (because we’ve all been there), I jumped at the chance to contribute my Parenting for College Crash Course eBook to help you set your student up for college to the BACK TO SCHOOL BUNDLE.

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Top 10 Questions Parents Ask About Paying for College

paying for college
Image by Gerd Altmann from Pixabay

Navigating the financial aspects of sending a child to college can be daunting for many parents. From scholarships and loans to budgeting and saving, there are numerous considerations. Here, we address the top 10 questions parents commonly ask about paying for college, along with comprehensive answers.

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