5 ways to survive the cost of college

The cost of college has skyrocketed, and unless some sort of reform takes hold, it may seem daunting to fund a college education. But until colleges are pressured to lower their costs, there are ways to help you cope financially within the system.

Below we’ve outlined five guidelines that can help make sending your child to college more affordable while keeping you on track with your own financial goals.

Why the cost of college matters more than ever

The cost of college continues to rise, challenging families to balance education goals with other priorities such as retirement savings. At the same time, many graduates continue to leave school with significant student debt. New federal student loan rules will change repayment options and borrowing considerations for future students, making college financial planning more important than ever. Before committing to a school, compare the total cost of attendance, expected borrowing needs and likely earnings after graduation. Taking a long-term view can help families make more informed decisions about how to pay for college. 

#1: Consider the long-term value of a college degree

You want any investment to yield an attractive return. That means the cost of your child’s college degree shouldn’t leave your child with crippling debt and drain your savings. You and your child also should consider whether they will earn a salary early in their career that justifies the cost of their undergraduate degree. Of course, an “investment return” in this context can be more than monetary. For example, the fulfillment your child receives from working at a nonprofit could help justify the cost of college. Determining this value may be a more subjective exercise than it is with most other investments.

Compare tuition costs to future earning potential

Recent college graduates can still benefit from a meaningful earnings advantage, but salaries vary widely by field of study. According to the National Association of Colleges and Employers, the average projected starting salary for Class of 2025 bachelor's degree graduates is about $68,700, with engineering and computer science graduates generally earning among the highest starting salaries.

Regardless of major, your college graduate may want to use that first paycheck to cover rent, transportation, food, clothing and other living expenses. Before committing to a particular school or degree program, consider whether the expected earnings after graduation are likely to justify the total cost of attendance. It's also important to think about how student loan payments could affect your child's budget and ability to achieve other financial goals after graduation.

Understand student loan debt after graduation

Let’s see what that debt can look like. According to College Board's Trends in Student Aid 2025, bachelor's degree recipients who borrowed to help pay for college graduated with an average of $29,560 in student loan debt during the 2023–24 academic year. While that figure may seem manageable, it's important to remember that it's only an average. Many students borrow substantially more depending on the school they attend and the amount of financial aid they receive. What borrowers ultimately repay may be significantly higher than the amount originally borrowed due to interest charges, and repayment may extend for 10 years or more depending on the loan type and repayment plan.

Student debt may be significantly higher for graduates of some private colleges and universities, where the total cost of attendance can exceed $90,000 per year, including tuition, fees, housing and other expenses. By comparison, the cost of an in-state public university is often much lower, making it worth carefully evaluating whether a higher-priced school is likely to deliver enough long-term value to justify the additional borrowing.

Consider: Is college worth the cost?

Let’s go a step further: Is a bachelor’s degree worth the cost? For many students, the data suggests the answer is still yes. According to the Bureau of Labor Statistics, workers age 25 and older with a bachelor’s degree earned more than 65% more on a weekly basis versus those with just a high school diploma. Similarly, the National Center for Education Statistics found that those who are 25 to 34 years old with a college degree are earning almost 60% more than those with just a high school diploma.

Of course, a bachelor's degree is not a guarantee of financial success, and earnings vary by industry, occupation and individual career path. But the long-term data continues to show that higher levels of education are generally associated with higher earnings and lower unemployment. When evaluating the cost of college, it may be more helpful to focus on finding a school that offers a strong educational fit and a reasonable return on investment than on pursuing the most expensive option.

There are many paths to a successful career. A well-planned college education – whether earned at a public or private institution – can help position your child to build financial security while allowing you to stay focused on your own long-term goals.

#2: Factor graduate school into the equation

When your high school senior is already considering graduate school, it becomes another reason to keep down undergraduate costs. Your child may end up choosing a private or out-of-state public school and feel freer to spring for a pricey graduate school. This could result in both of you spending six figures on higher education and amassing big debt. Instead, discuss it early to make expectations clear. Tell your child how much of their undergrad and graduate education you will pay for, leaving your child to seek ways to get the best value for every dollar spent on their education.

 #3: Make college planning a family conversation

For some, going to college is the start of becoming an adult. Think of ways your child can take responsibility for the plan to pay for their degree. The ways each of you participate in the plan and how much may depend on your financial situation, your child and other factors. The alternative may be that your child tells you which colleges they’re interested in attending, leaving you to figure out the rest.

Discuss borrowing expectations early

Determine the amount you can afford to spend. If you’re concerned about revealing too much about your finances, remember that your child will learn about them if they need to fill out financial aid forms. Conduct due diligence with them by breaking down and comparing the costs of the colleges they want to attend. Consider other expenses that may come up later, like any potential studies abroad or unpaid internship opportunities. Be open about the need to manage costs, including whatever new expenses they will need to shoulder. This may lead them to suggest a college that will cost less. If it doesn’t, educate them about the serious downsides of graduating with heavy debt.

Understand financial aid and student loan options together

Financial aid rules and student loan programs continue to evolve. Beginning in July 2026, federal student loan changes change repayment options and borrowing limits for some students. Families should review financial aid packages carefully, understand the differences between grants, scholarships and loans, and consider how future repayment obligations could affect long-term financial goals. 

 #4: Explore alternative ways to earn a degree

Who says your child must live at college or attend the same college for the full four years?  There are other ways of experiencing college and getting an undergraduate degree.

Live at home during college

About 43% of the total cost of attending a 4-year university is room and board. A lot of money can be saved by living at home. Of course, for some, it can crimp your overall college experience, so it’s best to weigh the pros and cons.

Start at a community college

A two-year community college can be the way to go for your child in their first two years. They can always transfer to a four-year institution if they have the ambition and financial means to do so. You both may save a lot of money in the process and a bachelor’s degree from a school they transferred to is worth just as much as one from a school they attended all four years.

Consider accelerated degree programs

Some schools offer the ability to get a degree in three years versus four years. If this fits your child’s goals and drive, it could make an undergraduate degree 25% cheaper and enable them to be fully employed a year earlier.

Look for employer tuition assistance programs

Plenty of us have earned a degree while also working. Some employers have assistance programs like college tuition reimbursement, which can create valuable opportunities for those who feel entering the workforce first is the best path for them.

Explore military education benefits

This may be the ultimate employer assistance program if your child is inclined to serve.

Opt for workforce training programs

For some students, a traditional four-year degree may not be the only path to a rewarding career. Beginning in 2026, certain short-term workforce training programs may become eligible for Pell Grant funding, potentially lowering out-of-pocket education costs. Career-focused programs in fields such as healthcare, technology and skilled trades may offer lower-cost pathways into in-demand professions while helping students avoid significant borrowing.

#5: Think beyond your first child's college costs

If you have more than one child and you’re currently planning for your first child going to college, it’s easy to get caught up in the excitement and forget that costs may soon rise exponentially – and compound – depending on the college plans of your other children.

Build a college funding strategy that works for your family

The best college funding strategies begin with a realistic assessment of your finances. Determine how much you can contribute without jeopardizing retirement savings, build a plan for managing any borrowing and compare multiple education options before making a decision. Whether your child attends a public university, community college, workforce training program or private institution, thoughtful college financial planning can help reduce the cost of college while supporting your broader financial goals.

Frequently asked questions

How can families reduce the cost of college?

Families may reduce the cost of college by comparing schools, considering community colleges, living at home, applying for scholarships and grants, exploring employer tuition assistance programs and carefully evaluating how much student debt may be needed to earn a degree. These college funding strategies can help improve affordability while supporting other financial goals.

What is the average student loan debt for college graduates?

Individual borrowing amounts vary widely depending on the school attended, financial aid received and other factors. But many bachelor's degree recipients graduate with student loan balances that can affect their financial goals after graduation.

Are student loan rules changing in 2026?

Yes. Federal student loan changes took effect on July 1, 2026, affecting some repayment options and borrowing rules for future students. Families should review how these changes may affect college funding and repayment planning before borrowing.

Is community college a good way to save money?

For many students, starting at a community college and later transferring to a four-year institution can significantly reduce the overall cost of earning a bachelor's degree while providing access to many of the same career opportunities.

Should parents pay for all of their child's college expenses?

Every family's situation is different. Parents may want to balance college funding with other financial priorities such as retirement savings, emergency funds and supporting multiple children. Creating a shared plan can help families make informed decisions about how to pay for college.

How much should parents save for college?

There is no one-size-fits-all savings target. The amount parents should save depends on factors such as the type of school their child may attend, the family's financial situation and how much they expect loans, scholarships, grants or student earnings to cover. Rather than trying to save the full cost of college, many families focus on contributing what they can while balancing other priorities such as retirement savings and emergency funds. Planning early and saving consistently can help reduce future borrowing needs.

What is the cheapest way to earn a bachelor's degree?

For many students, one of the most affordable paths to a bachelor's degree is to begin at a community college and transfer to a four-year institution. Other cost-saving strategies may include attending an in-state public university, living at home, pursuing scholarships and grants, enrolling in accelerated degree programs or participating in employer-sponsored tuition assistance programs. The best option depends on a student's academic goals, career plans and personal circumstances.

Should families choose the least expensive college?

Not necessarily. The goal isn't always to choose the cheapest school – it's to find a college that offers the best value. Families may want to compare total costs, financial aid packages, expected borrowing, graduation rates and career outcomes. A higher-cost school may make sense if it provides opportunities that align with a student's goals, but it's important to consider whether the additional cost is likely to justify the investment over time.