Jul 3, 2025
Imagine you’re a high school senior nearing graduation and eyeing the start of your college career. You have the grades to get into a good school, but fall short of earning a full scholarship.
However, your parents are well-off and can afford to pay for your schooling, so you always figured money wouldn’t be an issue, right? Until one day they drop the bombshell: college costs will be your responsibility.
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It turns out they have nothing saved up for your education, and suggest that taking out student loans and managing debt will build accountability and financial smarts.
Is that true, or are your parents just throwing you to the wolves?
How to prepare
It’s no secret that college costs in the U.S. are high these days. The average cost for undergraduate students — including books, supplies and living expenses — stands at $38,270 per student each year, according to the Education Data Initiative. Stripped down to tuition alone, the average cost of attending college in-state is $9,750, while out-of-state tuition costs $28,386.
If you had known beforehand that you’d be footing your own education bill, you might have had time to prepare by saving and working toward getting scholarships to help with some of the incoming debt. But there are still ways to tackle the cost of college.
First, it’s important to note that there’s no strict income cutoff to qualify for federal student aid. Any student can apply through the Free Application for Federal Student Aid (FAFSA) to determine eligibility for federal grants, work-study funds and loans.
Keep in mind there are plenty of scholarships that don’t focus on grades or income. Explore receiving awards based on community service, job experience and extracurricular activities.
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Getting a part-time job to chip away at loan costs upfront can save you money over time. Try to get in as many hours as you can over the summer and pick up a student job once you get to school. Even if you’re not eligible for a federal work-study, many universities offer traditional part-time roles that can be fit around your class and exam schedule.
And if you do need to take out loans, consider opting for federal loans first before private loans, as interest rates are typically lower and they often don’t require parents to cosign.
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Conversations about college
Conversations between parents and children about what will be expected of each party financially when it comes to college can help prepare everyone to navigate expenses, and maybe save some family relationships.
Parents should be direct and honest about what help they plan to offer. Talk about what will be contributed, and whether it may depend on good grades or which schools accept the child. Determine if any amount will be expected to be paid back, if your kid is expected to work part-time or if you will cosign any loans. Do this far enough ahead of time so all parties can prepare.
Make sure to fill out the FAFSA form with the child. Even if household income disqualifies a student from need-based aid, they still may be eligible for federal loans. Plus, it can be beneficial to have a FAFSA on file if applying for anything else.
Also determine if any money will go to other expenses besides tuition, including housing, transportation, food or spending money.
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Chris Clark is a Kansas City–based freelance journalist covering personal finance, housing and retirement. A former Associated Press editor and reporter, he writes plainspoken stories that help readers make smarter financial decisions.
