Is your child nears high school graduation, the excitement of college can quickly turn into anxiety about how to pay for it. Between researching schools, completing applications, and exploring financial aid options, it’s easy to feel overwhelmed.
Whether you’re planning for your child’s education or your own, understanding how to afford college doesn’t have to be complicated. With a few smart steps, you can make confident, informed decisions about funding higher education.
The FAFSA
The best place to start is by completing the FAFSA. FAFSA stands for “Free Application for Federal Student Aid,” and it’s a one-stop shop for student financial aid, work-study funds, and loans. While some parents and students hire a professional to fill out the application, you can do it on your own using FAFSA.gov. It should take about 30 minutes to complete, and you’ll need the following information:
- Your Social Security number
- Your Alien Registration Number (A-Number) if you’re not a U.S. citizen
- Federal income tax returns for the last few years
- Your current bank account balances and possibly bank statements
- A StudentAid.gov account
- If applicable, records of your untaxed income (the net worth of your investments, businesses, and farms, plus child support you received)
In addition, your “contributors” will need to make their own accounts and provide the same information. Contributors could be your parents or legal guardians if they claimed you as a dependent, or your spouse if you are married but filed taxes separately.
Submitting the FAFSA
Each academic year, the FAFSA has a federal deadline of June 30 for the school year you’re applying to. For instance, the deadline for the 2026–27 academic year is June 30, 2026. Because many aid programs award funds on a first-come, first-served basis, it’s best to submit your application as early as possible. The FAFSA window typically opens on October 1 for the following academic year.
Moreover, most states have deadlines for their grants in the winter or spring of the first year. Schools can set their own deadlines, although they typically align with the state deadlines. The best strategy is to complete the FAFSA as soon as possible.
The federal government doesn’t do a whole lot with your FAFSA; instead, it has to be submitted to the school you attend. When you submit your FAFSA, you’re asked which schools you want to send it to. Adding schools is free even after you’ve submitted the form, so there’s no stress if you haven’t made up your mind yet.
Estimating Costs
You can’t make a solid plan without knowing how much you need. After you’ve made a short list of schools, it’s time to sit down and figure out how much each school will cost.
All colleges and universities are required to publish a Cost of Attendance. The Cost of Attendance includes estimates for housing and food costs, personal expenses, textbook prices, and transportation. It can be a good starting point for your plans—but it may not be the full picture. Be prepared to run into unexpected costs.
What’s Next?
After you’ve submitted your FAFSA, make sure to check in with your schools’ financial aid offices. They may have additional opportunities that require additional forms. They can also have resources to help you find scholarships.
While you wait for admission decisions, it’s a good idea to start touring the schools you’re planning on attending. Be sure to explore the dorm rooms, dining rooms, cafeterias, and the campus as a whole. It’s also a good opportunity to have a chat with someone from the financial aid office so that they can put a face to your name! Touring is your opportunity to start networking on campus and gauge whether the school is a good fit.
Acceptance and Award Letters
Once admissions decisions start rolling in, you’ll start getting letters from the schools. If you’re accepted, the first letter will be an acceptance letter. That letter will tell you what the next steps for enrollment are and any relevant deadlines. You might get this information via email, but you should also get a physical letter.
Another important letter you’ll receive is a financial aid award letter. It usually takes a few days to weeks to prepare, so make sure to check your inbox frequently. Depending on the school’s policies, you may need to confirm your enrollment or pay a deposit before they start working on your financial aid offer.
The letter should contain the following info:
- Cost of Attendance: The estimated cost of attending school for this year, including tuition, housing, food, transportation, etc.
- Student Aid Index (SAI): An estimate of how much you can afford to contribute yourself based on the information in your FAFSA
- Financial Need: The cost that you can’t personally cover, calculated as the Cost of Attendance minus your SAI and resources
- Offer of Grants and Scholarships: A table listing all of the grants/scholarships the school is offering you.
- Work-Study Funds: The total amount available to you through a federal work-study program
- Unmet Need: This is how much of your Financial Need is left after grants
- Student Loan Offers: A table listing the loans you’re eligible for (typically lists only federal student loans)
The Different Kinds of Financial Aid
It can be confusing to navigate the various types of financial aid available. Grants and scholarships are often considered the best because you don’t need to repay them.
Next are work-study funds. To access this money, you have to work for the school or a partner organization. You’ll be paid an hourly rate, but you can only be paid as much as your work-study amount.
Finally, loans can help you cover any remaining expenses. You will have to repay the money, but if you only use federal student loans, you will have access to student loan forgiveness and income-driven repayment plans.
Avoiding Student Loan Debt
Student loans can feel like a heavy burden after graduation, so it helps to plan ahead before borrowing. One way to do this is by thinking carefully about the schools you or your child are considering. A well-known college may sound appealing, but the cost isn’t always worth the long-term debt.
Community colleges are another strong option. They usually have much lower tuition while still offering quality courses. Many students start at a community college to complete general education requirements and then transfer to a four-year university. This approach can cut the overall cost of a degree while still allowing you to graduate from a larger or more prestigious school.
Final Thoughts
Paying for college is a major decision, but small choices—like where to start or how much to borrow—can make a big difference. By focusing on affordable options and limiting the need for loans, you can set yourself or your child up for a stronger financial future after graduation.
