Lori Meadows
The cost of a college education can be a significant burden for students and their parents. While many students work while enrolled and rely on financial aid, a large proportion still require parental assistance. A 2025 study found that approximately 45% of a student's tuition on average is paid by their parents, with other relatives covering an additional 2%. A 2021/2022 study by Sallie Mae revealed that parents covered about 43% of their student's college costs using income and savings, and an additional 8% through loans. A survey by the Times found that 75% of students received money from their parents during their time at university, with the average total across three or four years being £16,000. Another study found that 85% of parents pay at least a portion of their child's tuition.
| Characteristics | Values |
|---|---|
| Percentage of parents paying for college | 77% or above |
| Average contribution by parents per year | $13,000 |
| Average contribution by parents as a percentage of total cost | 43% |
| Average contribution by parents in the form of loans | 8% |
| Average total parental assistance | $25,000 |
| Percentage of students relying on parents to pay credit card debt | 47% |
| Percentage of students relying on parents to pay utility bills | 13% |
| Percentage of students receiving money from parents in the UK | 75% |
| Average total received by students from parents in the UK | £16,000 |
| Percentage of parents paying for some college expenses | 85% |
| Average contribution by parents as a percentage of students' college costs | 45% |
| Average contribution by parents in the form of student loans | 9% |
| Percentage of students whose parents pay for all of college | 10% |
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Parents' income and savings
The percentage of parents paying for college expenses is quite high, with 85% of parents paying for some college expenses, and 77% of American families using parent income and savings to pay for some of their child's college expenses. This is because college tuition has been on a constant rise for the past two decades, and parents have had to leverage savings, retirement accounts, and equity to cover the costs. The average parent contribution comes out to be $13,000 per year, with some sources citing the average parental assistance to be around $25,000.
The burden of college tuition can be reduced by filling out the FAFSA®, which ensures that the family receives all possible federal aid and grants. A 529 college savings account is another option, which is a tax-advantaged account designed to help save money for a child's college education. However, it is important to note that taking out student loans can impact a parent's credit report and score, increasing their debt-to-income ratio and potentially affecting their ability to qualify for other loans. Therefore, it is recommended to only take out parent student loans if finances are in a good place and payments can be comfortably afforded.
Additionally, it is worth mentioning that the cost of college is not limited to tuition alone. Other factors that parents may need to consider include credit card debt, utility bills, and food insecurity. On average, 47% of college students rely on their parents to pay their credit card debt, which can range from $1500 to $2800. About 13% of students receive help with utility bills, and 39% experience food insecurity during the school year, which can impact their mental health.
While parents may want to provide for their children's education, it is crucial to prioritize financial stability and retirement savings. There are no loans or scholarships for retirement, and one source mentions that 48% of households headed by someone 55 or older had no retirement savings. Therefore, it is important for parents to make informed decisions about paying for college while also securing their financial future.
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Student loans
Student Loan Considerations for Parents
When considering taking out student loans as a parent, it's important to make informed decisions. Here are some factors to keep in mind:
- Financial Goals: Taking out student loans can impact your credit score and debt-to-income ratio. A high debt-to-income ratio may make it challenging to qualify for other loans, such as mortgages or car loans.
- Retirement Savings: Prioritize your retirement savings. While your child can take out loans for college, there are no loans for retirement. Ensure your financial stability before committing to parent student loans.
- Interest Rates and Credit Checks: Student loans, such as Parent PLUS Loans, may have varying interest rates and credit check requirements. It's essential to understand these factors before applying.
- Federal and State Options: Explore federal and state loan options. For instance, in the US, the FAFSA (Free Application for Federal Student Aid) ensures access to federal aid and grants. Additionally, each state offers a tax-advantaged 529 college savings plan.
Student Loan Considerations for Students
For students taking out student loans, the following considerations are crucial:
- Cost of Attendance: Student loans can help cover the cost of attendance, including tuition, fees, room, and board.
- Living Expenses: Loans can also assist with living expenses, such as utility bills and food. Food insecurity is a concern for many college students.
- Credit Card Debt: Student loans may help manage credit card debt, which is common among college students.
- Work and Study Balance: Many students work while enrolled to manage their loan debt and cover additional expenses.
- Loan Debt Crisis: Be mindful of the student loan debt crisis. Millions of borrowers are struggling with loan repayments, so it's essential to understand the financial commitment.
Impact of Parental Financial Assistance
Parental financial assistance, including student loans, plays a significant role in a student's ability to pursue a college education:
- Financial Support: According to various sources, between 77% and 85% of parents contribute financially to their child's college education. This support can be crucial in covering tuition and other expenses.
- Impact on Enrollment: The availability of parental financial assistance can influence enrollment rates and the duration of a student's educational journey.
- Student Wellbeing: Financial support from parents can help alleviate the stress and mental health issues associated with financial insecurity during college.
In conclusion, student loans are a critical component of financing a college education. Both parents and students must carefully consider the implications of taking on student loan debt while also recognizing the positive impact of financial assistance on a student's educational journey.
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Scholarships
There are a variety of scholarships available, offered by different institutions such as schools, the federal government, local districts, and third-party providers. Scholarships are also available for different fields of study, such as health, humanities, business, and management. Athletic scholarships are another option, but these are highly competitive and offered to less than 2% of high school student-athletes.
To improve your chances of securing a scholarship, it is important to start your search early and use scholarship search engines, school counselors, and local and niche opportunities. It is also beneficial to tailor your applications to match the scholarship's requirements and highlight your strengths and achievements. Maintaining strong academic performance is crucial, as many scholarships prioritize academic achievement.
Some examples of scholarships include The Gates Scholarship, which is a highly selective award for outstanding minority high school seniors from low-income households, and the Heart Warrior Achievement Scholarship, which provides assistance to undergraduates and high school seniors with CHDs.
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Grants
A significant percentage of students receive financial assistance from their parents or other family members when pursuing a college education. According to various sources, between 77% and 85% of parents contribute at least partially to their children's college expenses. This contribution can take the form of income, savings, loans, or other means. During the 2021/2022 school year, on average, parents covered about 43% of their student's college costs using income and savings, with an additional 8% covered by loans. This amounted to an average total contribution of $13,000 per year.
However, it is important to note that not all parents are able or willing to pay for their children's college education. Some students may have to rely on other sources of financial aid, such as grants, scholarships, work, or loans, to fund their education.
- Federal Grants: The US Department of Education administers grant funding programs to promote student achievement and ensure equal access to education. Federal grants, such as the Pell Grant, are usually need-based and awarded to students with exceptional financial need. These grants can provide a substantial amount of money that can be used to cover tuition, fees, and living expenses.
- State Grants: In addition to federal grants, each state may offer its own grant programs with specific eligibility requirements. These grants often aim to support residents pursuing higher education within the state.
- Institutional Grants: Colleges and universities often have their own grant programs, which can be need-based or merit-based. These grants are typically awarded to students who demonstrate exceptional academic achievement or have financial need.
- Private Grants: Various private organizations, foundations, and corporations offer grants with specific eligibility criteria. These grants may be targeted towards certain fields of study, students with particular backgrounds or interests, or those who plan to pursue specific career paths.
- Grant Application: Applying for grants often involves completing applications and submitting any required supporting documentation. The FAFSA (Free Application for Federal Student Aid) is a crucial form that determines eligibility for federal and state grants, as well as other types of financial aid. It is important to carefully review the requirements and deadlines for each grant to maximize the chances of receiving funding.
- Grant Amounts: Grant amounts can vary widely depending on the specific grant, the financial need of the student, and the cost of attendance. Some grants may cover a small portion of tuition, while others can provide full-ride scholarships. It is important to research and apply for multiple grants to increase the chances of receiving significant financial support.
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Part-time work
A part-time job can be a great way for students to earn extra money and gain work experience. However, it's important to consider the time commitment and ensure that it doesn't negatively impact their studies. Here are some part-time work options for students to consider:
On-Campus Jobs
Working on campus offers convenience and flexibility for students. Many colleges have job boards and host on-campus job fairs, making it easier for students to find opportunities. These jobs can range from writing about college life for publications to serving as brand ambassadors or working in food service.
Freelance Work
Students can leverage their skills and turn to websites like Fiverr and Upwork to find freelance work. They can offer services in various fields, such as design, translation, web development, or social media management. This option provides flexibility and the opportunity to build a portfolio.
Tutoring
Tutoring is a popular choice for students, as it often offers good pay and flexible hours. Students can tutor locally or online, helping younger students prepare for standardized tests like the SAT or ACT. According to the Bureau of Labor Statistics (BLS), tutors earned a median wage of $17.50 per hour as of May 2021.
Childcare
Working as a part-time nanny or babysitter can provide a good income, and sometimes even housing. College nanny jobs pay an average of $15 per hour, according to ZipRecruiter. This option can be ideal for students who enjoy working with children and want to earn while providing childcare services.
Company-Specific Programs
Some companies offer tuition assistance programs for their employees. For example, Amazon provides part-time workers with the Career Choice program, which pays up to $12,000 over four years for an associate degree or vocational certificate. Similarly, FedEx and UPS offer education benefits to their employees, including tuition reimbursement.
Service Industry
While restaurants and bars may not offer formal tuition assistance, they are popular choices for students due to flexible hours and the potential for good income through tips. However, it's important to note that the income may only supplement college expenses rather than cover all costs.
Online Opportunities
Students can explore online opportunities, such as content creation on platforms like YouTube and TikTok. By building a following, they can earn money through ads on their videos. Additionally, online tutoring platforms like Preply allow students to work remotely and set their hourly rates.
While considering part-time work, students should also be aware of the financial aid options available, such as federal aid, grants, and scholarships. Filling out the FAFSA can help ensure access to federal aid and make college more affordable, reducing the financial burden on both students and their parents.
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Frequently asked questions
According to a 2025 study, 85% of parents pay at least a portion of their child's tuition fees. Another study from 2021/2022 reports that on average, parents contribute 43% of their child's college costs using income and savings, and an additional 8% through loans.
On average, parents of undergraduate students contribute about $13,000 per school year. According to a survey by The Times, students at Imperial College London received the most financial support from their parents, totalling £31,700.
Besides tuition, parents may cover their child's living expenses such as room and board, books, computers, and school supplies. 47% of college students rely on their parents to pay their credit card debt, and 13% have their utility bills partially covered by their parents.
According to a 2025 study, 18% of parents use borrowed funds to pay for a portion of their child's college education. Another study from 2021/2022 reports that 9% of parents use student loans to cover their child's college costs.
