8 ways to pay for college: A practical guide for parents

If you have a teen who's touring college campuses and talking majors, you’re probably starting to think about the not-so-distant college tuition bills. Figuring out how to pay for college can feel overwhelming, especially with costs climbing. But the truth is, you don’t need to have it all figured out at once. You just need a plan (or a few).

Here are some practical ways to pay for college that you and your soon-to-be high school graduate can start exploring now. 

1. Start with the FAFSA 

Let’s get this one out of the way first. The FAFSA (Free Application for Federal Student Aid) is the starting point for almost all financial aid, including federal grants, student loans, and work-study programs. It’s smart to fill it out, even if you don’t think you’ll qualify for much. It’s important because the FAFSA is used by many states, colleges, and even private scholarship programs to determine the student’s eligibility for any kind of financial aid. 

Bonus tip: Some merit-based scholarships still require a FAFSA on file to release funds, so it’s not just for need-based aid.

2. Find free money with grants and scholarships 

Grants and scholarships basically equal free money. And there’s a lot more of it out there than most people think. Some are academic, yes, but others are based on everything from volunteer hours to your teen’s field of interest, background, or even quirky talents.

• Start local. Check with community foundations, schools, employers, and civic organizations.

• Use scholarship search tools. Sites like Fastweb and BigFuture help match students with opportunities. Be sure to check out other ways to find scholarships, too!

• Don’t ignore small ones. A $500 scholarship might not sound life-changing, but several of them can add up fast.

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Here’s the thing: most scholarships aren’t one-and-done. Encourage your teen to keep applying throughout college, not just during their senior year of high school.

3. Earn college credit early (and save big later)

If your teen is still in high school, check if their school offers dual enrollment. It’s a way to earn college credits early, often for free or at a much lower cost than regular tuition. It could knock off a semester (or more) down the line.

The same goes for AP or CLEP exams. Some colleges will give credit for high enough scores, meaning fewer classes to take and pay for later. Just double-check whether the schools on your teen’s list actually accept them.

Another option is to start at a community college and transfer. This can be a smart way to save money on general education classes, and it gives your teen time to figure out what they want to study before jumping into a four-year program.

4. Make the most of savings you’ve already set aside

If you’ve been putting money into a 529 plan, that’s a good start. Now’s the time to look at how and when you’ll actually use it. 

If you haven’t gone the 529 route, it might still be worth opening one, especially if you have younger kids or think grad school could be in the picture later.

There are a few other ways to save money for college, too:

• Coverdell ESAs. These work a lot like 529s but give you a little more freedom in how the money is used.

• High-yield savings accounts. A simple way to earn a bit more interest than a regular savings account. No investment risk, so it’s good for short-term goals.

• Custodial accounts (UGMA/UTMA). These are accounts you set up for your kids. One thing to be aware of is that the accounts will be in your kids’ name when they turn 18 (or 21, depending on your state), and that can have an impact on financial aid.

5. Get your teen involved 

College isn’t just your financial responsibility; it affects your teen, too, so they should be part of the conversation. This is a good chance for them to start learning how money, planning, and trade-offs all work in the real world.

Here are a few ways they can pitch in:

• Pick up a part-time job or side gig and start saving

• Treat scholarship hunting like it’s a part-time job

• Look for schools with strong financial aid packages (some offer a lot more help than others!)

It can be very motivating for your teen to understand the full picture of college costs and realize that they have some control over it.

6. Think about student loans (together!)

For a lot of families, student loans are part of the financial puzzle to pay for college. If you’re looking at loans, start with federal ones (like Direct Subsidized Loans) since they usually have lower interest rates and sometimes more flexible repayment options than private loans.

If you’re looking at private loans, don’t rush it. Look at interest rates from a few different lenders and make sure you and your teen really understand what the loan means, including how much they’ll owe, how long they’ll be paying it off, and what happens if things go sideways. If you're going to be a co-signer on the loan, remember that you're fully responsible if they miss payments. 

7. Look into work-study, campus jobs, and part-time perks

If your teen qualifies for the federal work-study program, it’s worth checking out. Work-study jobs are usually flexible around class schedules, and can be a great way for students to contribute to their tuition (while getting real-world experience in the process!). Even if they don’t qualify for the program, most schools have on-campus jobs to fill that can help with costs.

Bonus tip: Some off-campus jobs can help in more ways than just the paycheck. Big-name companies like Starbucks, Target, Chick-fil-A, and others offer help with tuition. It's definitely worth looking into!

8. Check your benefits and military options

It’s also a good idea to check your own employee benefits. Some companies offer tuition help or scholarships for employees’ kids, but you might have to dig a little to find the details. If you or your spouse served in the military, there could be education benefits available through the GI Bill or similar programs.

And if your teen is considering military service, the Reserve Officer Training Corps (ROTC) or the service academies can cover tuition completely (but they do come with a commitment to serve after graduation!).

A few more ways to pay for college 

If you’re already exploring all the above and looking to stretch every dollar, keep these in mind:

• Tax credits. You might be able to get some relief at tax time. The American Opportunity Credit and the Lifetime Learning Credit can help offset what you’re spending on tuition and other college expenses.

• Payment plans. College payment plans often allow families to split tuition into interest-free monthly payments instead of borrowing the money upfront.

• Cost comparison. Cost-conscious school selection matters more than you think. Sometimes, a private school with great aid is cheaper than a state school that offers less.

There’s no one-size-fits-all approach to paying for college. Most families use a mix of strategies: some savings, some aid, maybe a part-time job, and yes, sometimes loans. The key is to start planning early, have open conversations with your teen, and explore every option without panic.

You don’t have to have all the answers today. But the sooner you start asking the questions, the more confident you’ll both feel as decision time rolls around.

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