How do families typically pay for college?

I'm really stressed out about the financial aspect of college. How do most families tackle this issue? What are some financial strategies you'd recommend?

Families typically use a mix of strategies to cover college costs. I'll outline a few below:

1. Savings: Some families save over time in accounts such as 529 college savings plans which grow tax-free. This strategy requires long-term planning and steady contributions.

2. Income: Parents may use a portion of their current income to pay college expenses as they arrive. It's important to plan out a feasible budget taking this into account.

3. Financial Aid and Scholarships: This is a key strategy for most families, as grants and scholarships are funds that don't need to be repaid. To maximize your eligibility for need-based aid, make sure to complete the Free Application for Federal Student Aid (FAFSA). Scholarships can come from universities, private companies, or community organizations. If possible, start your scholarship research early, as many deadlines occur before college application deadlines.

4. Loans: Both parents and students can take out loans to cover college costs. These come in the form of federal and private loans.

5. Work-Study and Part-Time Jobs: Many students have part-time jobs or work-study programs to help offset the cost of college. Work-study is a federal program that provides part-time employment to students with financial need.

6. Tuition Repayment Plans: Some colleges offer tuition repayment plans which split the tuition bill into smaller, monthly payments, making it more manageable.

While figuring out how to pay for college can feel daunting, it's important to remember that most families use a combination of these strategies. It can be helpful to speak with a financial aid counselor or advisor to ensure you're maximizing your use of available resources.