10 effective tips for paying for college: Parents edition

College has probably crossed your mind no matter how old your kids are. Let's face it: The cost of college is a big concern, and it continues to climb each year.

Starting to save for college when your child is young is a smart move. But if you got a late start, don't worry! We have 10 tips for paying for college that can lessen expenses and minimize the amount you borrow.  

1. Fill out the FAFSA: The first step to financial aid

The Free Application for Federal Student Aid — the FAFSA — can help your student access federal student loans, grants, and work-study opportunities to cover at least some college costs. Even if you think your family income is too high to qualify, applying each year is beneficial. Many schools use FAFSA information to award scholarships and other financial aid, so it's worth taking the time.

2. Explore scholarships and grants: Reduce out-of-pocket costs

One of the best tips for parents paying for college is to make sure your student applies for as many scholarships and grants as possible. Millions of dollars in scholarships and grants go unclaimed every year.

Searching for opportunities and filling out applications may overwhelm some teens. Helping them with the grant and scholarship search and tracking application deadlines can make a difference in how much money for college they may get.  

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3. Consider part-time jobs and work-study programs: Earn while you learn

Your student can cover some of their living expenses and college tuition with part-time work. Another option is a work-study program. Federal work-study opportunities are included in the FAFSA financial aid package and provide part-time jobs for students. These jobs often align with a student's major, allowing for real-world job experience and money for school.

4. Look into federal and private student loans: Borrow wisely

Federal student loans should be your first stop if you intend to borrow. These loans typically have better interest rates and more repayment options than private student loans. Federal loans can also include access to loan forgiveness programs for reducing the amount you or your child must repay. Private loans can fill the gap if you max out the amount you can borrow in federal loans.

The student loan process can be a good money lesson for teens to learn about borrowing, from how interest accrues to the benefits of paying off loans early.

5. Compare rates and terms: Find the best loan options

Like any loan, a lower student loan interest rate can save you thousands. Take your time researching and comparing options — understanding loan terms before signing anything can help avoid surprises later. And, you’ll want to be aware that most student loans come with fees.

6. Utilize savings: Tap into your nest egg

If you've contributed to a 529 savings plan or have set aside college money in other savings accounts, now's the time to use it. The best 529 savings plan withdrawal strategy for maximizing college aid can depend on your family's financial situation. A financial planner is an excellent resource for advice.

7. Explore income-share agreements: An alternative to traditional loans

Income-share agreements are becoming a popular alternative to student loans. Instead of borrowing money upfront, your student agrees to pay a percentage of their income after graduation for a set period. The upside? Payments adjust based on their income, which can be helpful if they don't land a high-paying job right away.

8. Create a budget: Track your expenses and live within your means

A solid budget is essential to staying on top of college expenses and can help parents and students alike stretch college dollars and avoid financial headaches. Greenlight® Infinity, the money and safety app for families, can help make budgeting easier for you and your college student, helping to ensure everyone is living within their means.

9. Prioritize academics: Focus on your studies to maximize scholarships and opportunities

Parents, this one's for the students: Keeping your grades up can lead to more scholarship opportunities and eventually, better job prospects. It's easy to get distracted by the social side of college, but you'll want to make the most of the investment.

10. Seek professional advice: Get help from financial aid advisors and experts

Consider seeking expert guidance, such as talking with financial aid advisors, to help make sense of the many options available. You can also talk to a financial planner for advice on college savings plans, paying off student loans, and other college-related financial issues.

Things to consider before paying for college

Involve your teen when talking about how to pay for their college education — it's a good idea to get your teen involved in these talks so they know what to expect. Consider discussing how much you can afford before picking a college. It's also prudent to take a closer look at how much you've saved, how much you'll likely need, and how much you can borrow without breaking the bank. This way, you can focus on schools that fit your child’s career plans and your family's budget. And then use our 10 paying-for-college tips to find the best way to make it happen.

Sending a teen off to college comes with a lot of worry, not just about the cost but also their safety. Greenlight Infinity is an excellent tool that can help you feel more at ease about both. It can give your teen money skills to carry them through college and beyond. You get peace of mind knowing the app's safety features, like SOS alerts and crash detection,* are available if needed. Download Greenlight Infinity today. The first month is on us 🎁

FAQs before paying for college

You likely still have questions about these financial tips for paying for college. Here are a few quick FYIs about common college FAQs 😉

What is the best method to pay for college?

The best approach is usually a mix of methods — scholarships, grants, work-study programs, savings for college, and if needed, student loans.

What is the most favorable way of paying for college?

Scholarships and grants are the most favorable. You don't need to repay them! Beyond scholarships and grants, the best way to cover tuition costs depends on your family's financial situation. 

What is the most common college loan?

Federal student loans are more common than private student loans. Federal loans typically have lower interest rates and more flexible repayment terms.

How long do most people go to college?

Typically, it takes four years to complete a bachelor's degree when attending full time. However, many students go part time and take as long as six years.

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