How do most parents pay for kids’ college?

Most parents pay for college using a combination of savings plans, income, financial aid, and student loans. Scholarships and grants are another popular way to fund education, as are gifts from friends and family. Early planning reduces the need for borrowing and can make costs more manageable over time.

Is paying for a child’s college tax-deductible?

Tuition payments aren’t generally tax-deductible, but there are some tax credits available. A 529 Savings Plan is a tax-advantaged way to help pay for college, and the student loan interest deduction can help eligible borrowers reduce their tax burden after college.

When should we start filling out FAFSA?

You should submit the FAFSA as soon as it opens, usually on October 1 each year. Applying early increases your chances of receiving more financial aid, especially for need-based and first-come, first-served programs.

What expenses should we expect beyond my child’s tuition cost?

Tuition is the lion’s share of what students have to pay for, but it’s not the only expense. Expect to budget for room and board, books and supplies, transportation, activity fees, and other personal expenses. These can add thousands to the total cost of attending school, so factor them in when planning for your child’s education.