For some students, college is not a decision of if they will go, but where? College is seen by many as required to ensure a successful career and the sooner you go the sooner you can begin following your dreams.
However, at 18, many students don’t have the financial means to pay for a college education on their own, which can cost nearly $40,000 per year. There are some federal financial aid options available but depending on where you attend college, it might not be enough. And most 18-year-olds lack sufficient income from jobs as well as a strong credit history to qualify for a private student loan on their own.
So, if a young adult has decided they want to go to college who’s going to pay? Is it their parent’s responsibility to pay? Should the student alone pay for the degree they choose to pursue? Or should both contribute to the cost of the college degree and pay together?
Paying for College
For a small family of 3, with only one child planning to go to college it might not seem out of reach to cover the cost of one college degree. However, at nearly $40K per year, the cost of going to college is nearly half the median annual household income of $83,730 in the United States. While a parent may have the desire to help pay for college, many may not have the means to do so without compromising their own financial health.
Parents Paying for College
Parents have options if they want to help their children go to college.
529 Plans
A 529 plan is a great tool for parents who want to save for their children’s education. With a 529, parents can put money into an account and invest that money so it can grow and help cover the costs of college by the time the child is ready to go. Using a 529 requires some planning and discipline on the part of the parents to open the plan early (ideally at the time of birth to give the money time to grow) and to consistently contribute to it over time.
According to the Schwab College Savings Calculator, for a baby born in 2026 in California, looking to go to public school in-state such as San Diego State University in 2044, parents would need to save $933 month for 18 years to meet the total projected cost of attendance for 4-years.
Federal Parent PLUS Loans
Parents can also choose to borrow money to help pay their kids for college. The federal government offers Parent PLUS loans to parents. For students starting San Diego State University (for example) this coming Fall of 2026, new loan limits now (as of July 1, 2026) reduce how much they borrow. The Big Beautiful Bill which passed in summer of 2025 caps annual borrowing for Parent PLUS loans at $20,000/year, with a lifetime limit of $65,000 per student.
Even with the student living at home, the cost to attend SDSU for an in-state resident for 4 years is roughly $100,000. If parents borrow $65,000 in Parent PLUS loans, this equates to a monthly payment of approximately $500-$600 or more (depending on the interest rate) for a period of 20 years (on the standard repayment plan) – and it’s still $35,000 short of what is needed to cover all the costs of attending SDSU for 4-years.
In both scenarios, the 529 or the PLUS loan, parents can expect to set aside several hundred dollars a month or more, per child for their college education.
FAFSA
While primary and secondary education is required by law throughout the United States, attending college is purely an optional choice. However, when a child decides to attend college, the costs associated with the decision are often placed on the whole family.
The federal government requires at least one parent, if not both, to submit financial information on the FAFSA (Free Application for Federal Student Aid) form. Individuals 24 years and younger must have their parents fill out the form if they want to be considered for federal financial aid, regardless of the parent’s willingness to help out financially or not. At some level, it ‘s assumed if they are able, they should help with costs.
Students Paying for College
Students looking to go straight to college after high school don’t have many options when it comes to paying for their own college education. They can hope their parent’s opened and contributed to a 529 plan for them when they were little. They can begin working around 16 years old and save their money. They can apply for lots and lots of scholarships while in high school and hope to win some to help pay for college. Most do (and should) apply for financial aid (see FAFSA above) to see what government assistance they are eligible for.
Federal Financial Aid for Students
The federal government offers 3 primary types of financial aid for students: the Pell Grant, Work Study and Federal Direct Student Loans. To receive the Pell Grant, eligible students must demonstrate financial need, the same with Work Study. Families making the median annual income or more may not qualify for the Pell Grant or Work Study.
Most eligible students can borrow Federal Direct Student Loans. Depending on your level of need, you may be offered either Subsidized or Unsubsidized loans or both. Students can receive these loans without proof of income or a credit history. Federal loans are capped at $31,000 in total for dependent undergraduate students.
Institutional Aid
For students attending state colleges, like San Diego State, they may be eligible for merit based institutional aid. This type of aid can reduce a student’s costs, making the school more affordable. The advertised cost of $100,000 can sometimes be significantly discounted, making the school financially feasible to attend. To be considered for institutional aid at public colleges, it’s important to fill out the FAFSA form.
Private Student Loans
If federal financial aid and institutional aid are still not enough, there are other options to help bridge the gap. Students can borrow private student loans to cover costs not met by federal and institutional aid or scholarships. Most private student loan lenders prefer students (especially incoming freshmen) to have a cosigner. Lenders will not lend to borrowers without established income and/or a strong credit history, so cosigners who meet these income and credit criteria become necessary for approval.
Parents and Students Paying for College Together
If a family pools its resources such as a 529 Plan, scholarship money won, summer job money saved and loans available, it becomes much more probable to be able to cover the costs of college – especially if there’s only one child. However, for families with multiple children it may still be difficult financially cover the costs when 2 or 3 or more kids want to get a college degree. What is a family to do? There are options to making education affordable for everyone in the family.
Choosing a School
Going directly to a dream school or even to in-state 4-year university may not be within the family’s financial reach but it’s not impossible. Attending a 2-year community college while living at home can save thousands of dollars on tuition and housing costs, without changing where the 4-year degree you want is ultimately obtained. Working during those 2 years can also help save thousands more to apply toward your degree.
Understand the Costs – During School and After Graduation
Before committing to any school, it’s important to sit down and weigh the costs of every decision you plan to make over the next 4 years. This includes community college vs going directly to the university. Choosing to go to school in-state or out-of-state. Deciding where to live, at home or on-campus and many more costs associated with attending college.
If you or your parents need to borrow money, think about how many loans you will need to borrow, calculate the interest costs that will be accrued while you are in school, and how much your monthly payments will be combined. It’s not uncommon to graduate with several loans and you want to plan to be able to afford those payments.
Think about job prospects after college. Be brutally honest about salary expectations. The job market can fluctuate wildly, and it may not be easy to find a high paying job (or any job) right out of school.
Plan Ahead
While trying to plan into the future can be overwhelming, it’s best not to avoid it and hope for the best then live to regret it. Things you can do to prepare include applying for scholarships during high school AND during all your years in college. Ask your parents to start a 529 plan and help you save. If you are old enough to work and save money – contribute to your own 529 plan if you can.
If you want to move away, spread your wings, consider schools nearby family members or trusted friends where you can live while attending school to save money. Most important, make sure to reach out to the financial aid department of all the schools you’re considering attending to understand fully every option available to you to help cover costs of your education.
Take ownership of your college education. At the end of the day, it’s your degree, your decision to attend and you the student should bear the primary responsibility of covering the costs. If your family can and is willing to help pay that’s wonderful, as long as it doesn’t jeopardize their financial situation.