Parents' Contribution to College Fees

So, I'm worried about the cost of college. How do most parents contribute to their child's college education? Or do most students foot the bill themselves?

The cost of college often prompts worries, and understandably so. The situation varies quite a bit from family to family, but typically, the family and student fund college education together. Parents will often save over the years for their child's education in a variety of ways, such as setting up a 529 education savings plan which is a state-sponsored, tax-advantaged account.

In many cases, parents cover a portion of the costs while students contribute by working part-time during the school year and/or during the summers, saving their earnings for tuition or living expenses. Some students also take on loans to aid in financing their education.

Scholarships and grants can significantly offset the cost, as well. Students can earn merit-based scholarships from colleges or external organizations, or need-based grants from the federal government or colleges.

However, it's important to mention that the expectation of parental contribution towards college cost varies from college to college. Many colleges determine a family’s expected parental contribution based on their income, assets, and other factors. This calculated figure is part of what the college uses to determine the need-based financial aid award for a student.

Knowing the different options and pathways to paying for college can make the financial burden less daunting. College education is a significant investment, and it's great that you're proactively planning for these expenses.