Paying for College

I've got a fair amount of anxiety about the cost of college. Do most Americans typically pay for their kids' college, or is self-financing (including scholarships, loans, etc.) more common?

Paying for college is indeed a significant concern for many families. The truth is, there isn't a one-size-fits-all answer to this, as it depends greatly on each family's financial situation and beliefs on the matter. However, according to the 2020 Sallie Mae report on How America Pays for College, 44% of college costs are paid for by parents through income and savings, and a further 8% of costs are covered by parents borrowing. Meanwhile, 25% of college costs are covered by scholarships and grants, and 23% are covered by the student themselves, through either their income, savings, or student loans.

So, while parents do contribute a significant portion, many students also shoulder a significant chunk of the cost, whether through work, loans, or scholarships. This doesn't mean every family has to or should follow this distribution. Some families may emphasize self-reliance and expect their children to pay for a greater proportion of costs. Where possible, I would encourage you to explore scholarship opportunities and work-study programs to reduce the overall cost. It's also critical to make use of resources like the FAFSA to determine what federal student aid you might qualify for.

In any case, it's essential to have an open conversation with your parents about your family's financial situation and what sort of assistance they'll be able to provide. This conversation can help guide your college selection process and assist in tackling any financial hurdles you might face. Go into this process with a clear understanding of what you can afford and be open to various options, including public universities, community colleges, or part-time study if necessary. Hope this helps you navigate through your concerns.