The May 1 decision deadline is approaching and you and your student are carefully weighing your final college decision options:
Do you choose the least expensive college, but not the first choice?
Do you choose the college that costs more because it’s their first choice, knowing you are creating financial difficulties for your family?
Do you play it safe and commit to the college that gives the most aid, even though it was one of the “safe” ones on the list?
Do you take a deep breath and jump at the dream college, hoping you will find a way to pay for it?
Those were my family’s choices twenty years ago and although it was difficult for my daughter to accept, we learned some lessons along the way that might help you as the May 1 deadline approaches.
For many families, understanding financial aid feels more stressful than the college application process itself. Between unfamiliar terminology, changing FAFSA rules, and confusing award letters, parents often struggle to determine what college will actually cost.
This guide breaks down how financial aid works, what each type of aid means, and how parents can confidently compare college offers.
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.
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.
Recent discussions about eliminating the U.S. Department of Education have raised concerns among parents and students, particularly regarding how such a move could impact federal financial aid programs, including student loans and Pell Grants.
While proponents of this change argue that shifting educational oversight to state governments would lead to more localized decision-making, opponents worry that it could create uncertainty and financial instability for millions of students who rely on federal aid to attend college.
There has been a fury of panic over the last several weeks as students and families received the news of federal funding freeze. Students all over Reddit were having meltdowns fearing they would not be able to finish college without this funding. That is not the case.
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.
Government student loans play a significant role in providing financial assistance to students who aspire to achieve their academic goals.
Education is a key investment in one’s future, and for many students, financing their education becomes a crucial aspect of pursuing higher studies. With so much confusion these days over which government loans are best and what the difference is, I felt it was time to simplify it for you and create a list along with the specifics on each.
Following are the various types of government student loans available to students in the United States.
Paying for college today can be stressful. Reading all the posts from parents on Facebook underscores the fact that college is expensive and parents are trying to pay for it without borrowing or graduating with massive student loan debt.
Today’s guest post is by Bob Collins, VP of Financial Aid at Western Governors University.
WGU students graduate with half the debt of their peers nationwide
Education is linked to the eradication of poverty and the promotion of prosperity, but evidence that college students graduate with excessive debt continues to pile up year after year. With student interest rates at their highest in the last decade, our current economy serves as a reminder that students should make informed decisions to borrow wisely.
Western Governors University (WGU) was established in 1997 with a mission to expand access to high-quality, online and affordable higher education. WGU serves more than 150,000 students nationwide and has more than 340,000 graduates in all 50 states.
