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Parents Can’t Borrow Unlimited Amounts for College Anymore — What Families Need to Know

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Borrowing Money
New Parent PLUS loan limits cap borrowing at $20,000 annually and $65,000 per dependent student for many families. Parents may need to rethink how they cover college funding gaps. (Pexels).

For years, the federal Parent PLUS program gave families a powerful but risky option: parents could borrow up to a college’s full cost of attendance minus other financial aid. That changed on July 1, 2026, when new Parent PLUS loan limits took effect for many families. New borrowing is generally capped at $20,000 per year and $65,000 total per dependent student. The shift could reshape college choices, especially at expensive private schools and out-of-state universities. Families now need to calculate funding gaps earlier instead of assuming another federal parent loan will cover the bill.

The New Parent PLUS Loan Limits Change The Math

The new Parent PLUS loan limits apply to all parents combined for each dependent student, rather than giving each parent a separate allowance. Two eligible parents cannot each borrow $20,000 for the same child in the same year; together, they are generally limited to $20,000. The lifetime cap is $65,000 per student, and amounts repaid, forgiven, canceled, or discharged generally do not restore that capacity. Previously, borrowing was essentially limited by the school’s cost of attendance minus other aid, allowing some families to borrow far more. For parents who treated PLUS loans as a financial backstop, that safety valve is now much smaller.

Some Current College Families May Get An Exception

The transition rules matter because not every family immediately falls under the new Parent PLUS loan limits. A limited exception can apply when a student was enrolled in the same program at the same institution by June 30, 2026, and qualifying federal Direct Loan funds had been disbursed for that program before July 1. Eligible families may continue under previous rules for up to three academic years or the student’s remaining expected time to complete the credential, whichever is shorter. Changing programs, schools, or enrollment status can affect that protection, so families should not assume they are grandfathered in. Ask the financial aid office to confirm the student’s status before building a multiyear budget around the exception.

A $20,000 Annual Cap Can Leave A Big Gap

The new cap becomes clearer when compared with actual college prices. College Board reports that average 2025-26 student budgets were $30,990 for an in-state public four-year college, $50,920 for an out-of-state public university, and $65,470 at a private nonprofit four-year institution. Imagine a family with a $45,000 remaining bill after scholarships, grants, student loans, and savings; a $20,000 Parent PLUS loan could leave $25,000 uncovered. That does not automatically mean abandoning the school, but the family needs another realistic source of money. Parent PLUS loan limits make comparing each college’s net price—not merely advertised tuition—more important than ever.

Borrowing Is More Expensive Than Many Families Realize

For 2026-27, new Parent PLUS loans carry a fixed 9.07% interest rate and a 4.228% origination fee. On a $20,000 loan, the fee means less than $20,000 reaches the school, while interest starts accumulating after disbursement. New Parent PLUS loans under the post-July 1 rules also have fewer repayment choices than many older borrowers had, making affordability especially important. Parents approaching retirement should be cautious about committing future income to college debt that legally belongs to them, not their child. A student may promise to make payments later, but the parent borrower remains responsible.

Families Should Build A Funding Plan Before Signing

Start by asking each college for the student’s net cost after grants and scholarships, then subtract savings, current income, work-study earnings, and the student’s federal loans. If a gap remains above the Parent PLUS loan limits, ask about additional institutional grants, payment plans, or scholarships for continuing students. Families can also reconsider housing, meal plans, transportation, or whether a lower-cost school would protect everyone financially. Private student or parent loans may fill a gap, but rates, cosigner obligations, and borrower protections can differ substantially from federal loans. Compare the total repayment cost and monthly payment—not simply whether a lender approves the application.

The New Limits Make College Choice A Family Decision

The key lesson is that Parent PLUS loan limits force families to confront affordability before a tuition bill becomes a crisis. A school requiring parents to borrow $30,000 or $40,000 every year may no longer work simply because federal PLUS loans once covered the difference. Changing the plan early may be less damaging than draining retirement savings or taking expensive private debt without a repayment strategy. Before committing, families should map all four years, allow for price increases, and decide how much debt the parent can comfortably repay without depending on the student’s future salary.

Would you choose a less expensive college to protect your family’s long-term finances, or find another way to cover the gap? Share your thoughts in the comments.

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Your Kid Wants to Drop Out of College — What Happens to the Money You Already Paid?

Your Kid Wants to Drop Out of College — What Happens to the Money You Already Paid?

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Stressed College Student
When a student decides to leave college, the timing of the official withdrawal can determine how much tuition a family gets back. Parents should also check financial aid, student loans, housing costs, and 529 plan consequences before paperwork is submitted. (Pexels).

When your college student says, “I don’t think I want to be here anymore,” your first concern may be whether leaving is truly the right decision. But after paying thousands of dollars for tuition, housing, meals, and fees, another question quickly follows: What happens to all that money? A college tuition refund is possible in some situations, but families should not assume they will simply receive back whatever they paid. The amount depends heavily on when the student officially withdraws, how the school structures refunds, and whether financial aid helped cover the bill.

The Withdrawal Date Can Make A Huge Difference

Timing may be the single biggest factor determining whether a family receives a college tuition refund. Schools generally publish refund schedules that reduce the refundable amount as the semester progresses, and the difference of a few days can cost thousands of dollars. For example, Tufts University’s fall 2026 schedule cancels 90% of tuition charges for withdrawals from September 8 through September 21, but only 20% for withdrawals from October 13 through October 19. If a student waits too long, the family could receive little or nothing back even though the student stops attending classes. Parents should therefore find the school’s current withdrawal and refund calendar before their child formally makes a decision.

Simply Leaving Campus Does Not Count As Withdrawing

A student cannot necessarily pack up the dorm room, stop attending class, and expect the billing office to recognize that as a withdrawal. Colleges typically require students to complete an official withdrawal or leave-of-absence process, and the effective date can determine the college tuition refund. Tufts, for instance, states that proper notification is required and that simply emailing a faculty member about dropping a course does not constitute an official withdrawal request. This distinction matters because tuition charges may continue until the school receives the required paperwork. Families should ask the registrar, bursar, and financial aid office exactly which forms must be submitted and obtain written confirmation of the effective withdrawal date.

Financial Aid Can Change The Refund Math

One of the biggest misconceptions is that any college tuition refund automatically goes straight back to Mom, Dad, or the student. When financial aid is involved, the school may first need to recalculate the student’s eligibility, which can reduce grants or loans and leave the family with an unexpected balance. Federal aid calculations generally treat students who withdraw within the first 60% of a term differently from those who complete more than 60%; after that point, federal Title IV aid is considered fully earned. A family that paid $8,000 out of pocket, for example, should not assume that an $8,000 reduction in school charges means an $8,000 check is coming home. Before withdrawing, request an estimated account calculation from the financial aid office showing what would be returned to aid programs, what would be refunded, and what the student might still owe.

Student Loans May Soon Enter Repayment

Dropping out can affect more than the current semester because student loan payments may also move closer. Federal student loans generally have a six-month grace period after a borrower graduates, leaves school, or drops below half-time enrollment, although the rules can vary by loan type and previous use of a grace period. That means a student leaving college in October could potentially face loan payments the following spring rather than years later after graduation. Parents should have their student review every loan, identify the servicer, confirm the outstanding balance, and determine when the first payment could become due. Private student loans require another check because their repayment and grace-period provisions depend on the lender and individual loan agreement.

Protect The Money Before Making The Exit Official

Dropping out of college does not automatically mean every dollar already spent is lost, but moving too quickly can make an expensive situation worse. Before submitting withdrawal paperwork, families should calculate the college tuition refund, financial aid adjustment, remaining school balance, loan repayment timeline, housing refund, and any consequences involving a 529 account. Asking whether a formal leave of absence is available can also be worthwhile when the student is uncertain about leaving permanently, because institutional policies may differ between temporary leaves and withdrawals. Most importantly, get estimates and policies in writing so the family can make the decision using actual numbers instead of assumptions.

If your child wanted to leave college halfway through a semester, would you prioritize getting some tuition money back or give them more time to decide? Leave a comment and share how you would handle it.

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The Direct Consolidation Trick for Parents Facing High Monthly Payments

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American Money
Image Source: Pexels

Parenting comes with countless rewards, but the financial pressure can sometimes feel overwhelming. Between childcare, groceries, housing, and education costs, monthly budgets can quickly spiral out of control. For many parents, student loan payments add another heavy layer to an already packed financial load. If you’ve ever wondered whether there’s a smarter way to manage those payments, you’re not alone. One often-overlooked solution—the direct consolidation trick—could be the relief valve you’ve been searching for.

What Is Direct Consolidation and Why It Matters

Direct consolidation is a process that allows borrowers to combine multiple federal student loans into a single loan with one monthly payment. This can simplify finances, especially for parents juggling multiple responsibilities and due dates. Instead of tracking several payments with different interest rates, consolidation streamlines everything into one manageable bill. While it doesn’t reduce your total debt, it can extend your repayment term, which often lowers your monthly payment. For parents facing tight budgets, this breathing room can make a meaningful difference in day-to-day financial stability.

How the “Trick” Works to Lower Monthly Payments

The “trick” behind direct consolidation isn’t a loophole but rather a strategic use of repayment options that become available after consolidating. Once loans are consolidated, borrowers may gain access to income-driven repayment (IDR) plans that weren’t previously available for certain loan types. These plans calculate your monthly payment based on income and family size, which is especially helpful for parents with dependents. By aligning payments with what you can realistically afford, the financial strain becomes more manageable. Over time, this approach can turn an overwhelming payment into something that fits comfortably within your budget.

Why This Strategy Works for Many Parents

Many parents find that direct consolidation creates a sense of clarity and control over their finances. Instead of juggling multiple due dates and payment amounts, everything becomes streamlined into one predictable obligation. This consistency can make it easier to plan monthly budgets and avoid missed payments or late fees. Additionally, the option to transition into income-driven repayment plans means payments can better reflect real-life financial demands. For households balancing childcare, bills, and unexpected expenses, that flexibility can be a game changer.

Potential Downsides Parents Should Consider

While direct consolidation offers clear benefits, it’s important to understand the trade-offs before moving forward. Extending your loan term can lower monthly payments, but it often increases the total interest paid over time. Additionally, once you consolidate, you may lose certain borrower benefits tied to your original loans, such as interest rate discounts or specific repayment perks. Some parents may also find that the weighted average interest rate doesn’t significantly reduce their overall costs. It’s essential to weigh short-term relief against long-term financial impact. Making an informed decision ensures that consolidation truly works in your favor.

Practical Steps to Get Started

Getting started with direct consolidation is more straightforward than many parents expect. Begin by reviewing all your existing federal student loans, including balances, interest rates, and repayment terms. Next, explore available repayment plans to understand how consolidation could change your monthly obligations. Use online calculators to estimate your new payment under an income-driven plan. Once you’re confident, submit a consolidation application through the official federal student aid platform. Taking these steps carefully helps ensure that you maximize the benefits while avoiding unnecessary surprises.

Real-Life Impact: Why This Matters for Families

For many parents, financial stress doesn’t just affect the bank account—it impacts mental health, relationships, and overall well-being. Lowering a monthly payment by even a few hundred dollars can free up funds for essentials like groceries, school supplies, or emergency savings. It can also reduce the constant anxiety that comes with living paycheck to paycheck. Over time, this financial breathing room allows families to focus on what truly matters: spending quality time together and building a secure future. The ripple effect of a single financial decision can be more powerful than it seems.

Is Direct Consolidation Right for You?

The direct consolidation trick isn’t a one-size-fits-all solution, but it can be a powerful tool for parents navigating high monthly payments. By simplifying your loans and potentially unlocking income-driven repayment options, you can regain control over your finances. However, it’s crucial to balance immediate relief with long-term costs to ensure the strategy aligns with your goals. Take the time to evaluate your situation, run the numbers, and consider your family’s financial priorities. When used wisely, consolidation can be a stepping stone toward greater financial stability and peace of mind.

Are your monthly payments stretching your budget thinner than you’d like? Have you considered whether direct consolidation could ease that burden? Share your experience or questions in the comments below—We’d love to hear how you’re navigating your financial journey.

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8 College Costs Families Don’t See Coming Until It’s Too Late

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hidden college costs
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Tuition and room and board usually dominate the conversation during college tours. You likely have a spreadsheet tracking those big numbers already. However, a silent group of expenses often catches parents off guard during the first semester. These hidden fees can add thousands to the total bill if you aren’t prepared. Understanding these sneaky costs now helps you avoid a financial crisis later.

1. The Mandatory Health Insurance Trap

Most universities require students to have health insurance, but they automatically enroll them in the school plan. This premium can cost upwards of three thousand dollars per year for the 2025-2026 academic cycle. You must actively provide proof of outside coverage to waive this fee. Forgetting this deadline means paying for double coverage that your student likely doesn’t need. Always check the bursar’s office website for the waiver form early in the summer.

2. Digital Access Codes for Coursework

Textbooks are expensive, but digital access codes are the new financial villain on campus. Professors often require these one-time use codes for submitting homework or taking quizzes. You cannot buy these used or rent them from a friend. These digital keys can cost over one hundred dollars per class. Budgeting specifically for these technological requirements is essential for every major.

3. High Cost of Campus Parking

Bringing a car to campus is a luxury that comes with a heavy price tag. Parking permits at major universities often cost more than a monthly car payment, with some premier garage rates exceeding $5,000 annually. Furthermore, city-based campuses frequently issue expensive tickets for minor infractions. Many students find that public transit or a bicycle is a much more economical choice. Evaluate the true necessity of a vehicle before paying those steep registration fees.

4. Lab and Studio Material Fees

Science and art majors face unique charges that tuition doesn’t cover. Lab fees pay for chemicals, specialized equipment, and safety gear used during experiments. Art students often spend hundreds on specific paints, canvases, or high-end software. These costs usually appear as line items on the tuition bill after classes begin. Researching the specific requirements for a degree path prevents these mid-semester surprises.

5. Professional Networking and Club Dues

Social and professional growth often requires a financial investment beyond the classroom. Many student organizations and Greek life chapters charge significant semesterly dues. These fees cover events, insurance, and national administrative costs. While these groups offer great networking, the price of admission is often steep. Discuss a social budget with your student to ensure they choose their involvements wisely.

6. Transportation for Holiday Breaks

Getting home for Thanksgiving or winter break requires careful planning. Airfare and train tickets spike in price during peak travel windows for students. If the campus is far from home, these travel dates can become a major financial burden. Booking months in advance is the only way to keep these costs manageable. Don’t forget to factor in the cost of getting to and from the airport as well.

7. Dorm Room Life Essentials

The basic room provided by the school is usually quite sparse. Families often spend a fortune on extra-long twin bedding, storage solutions, and small appliances. Laundry costs also add up if the machines aren’t free to use. Buying these items throughout the senior year of high school can spread out the impact. Consider looking for second-hand items from graduating seniors to save even more.

8. Technology Upgrades and Maintenance

A reliable laptop is a non-negotiable tool for modern education. However, hardware breaks and software require expensive updates or subscriptions. You should plan for potential repairs or the need for a replacement mid-degree. Many schools offer discounted repair services, but the parts remain expensive. Keeping a small emergency fund for tech issues will save a lot of stress during finals week.

Higher education is a massive investment that goes far beyond the sticker price. Identifying these hidden leaks allows you to build a more realistic financial plan. You should communicate openly with your student about who covers which expenses. Preparation is the best defense against the “bill shock” that hits every September. What is the most surprising college expense you encountered that wasn’t on the original brochure?

What to Read Next…

The 3 Most Expensive Mistakes Parents Make When Saving for College

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These Are The 3 Most Expensive Mistakes Parents Make When Saving for College
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There’s a moment every parent has: you’re sipping coffee, minding your business, and suddenly the thought hits you like a rogue soccer ball—college is going to cost WHAT by the time my kid gets there?

The number feels imaginary, like something from a dystopian novel, but the reality is that higher education isn’t getting cheaper. And while most parents genuinely want to prepare, many unintentionally make money‑draining mistakes that cost them thousands over the years.

1. Waiting Too Long to Start Saving 

One of the most expensive mistakes parents make is waiting until their child is older before they begin saving. It’s understandable—babies come with their own financial whirlwind, and college feels light‑years away. But compound growth doesn’t care about your to‑do list; it only cares about time.

The earlier you start, even with small amounts, the more your money can grow. Waiting until middle school or high school means you’re relying almost entirely on your own contributions instead of letting time do some of the heavy lifting. Many parents assume they need to save huge amounts to make a difference, but even modest monthly contributions can grow significantly over 18 years. Starting early isn’t about perfection—it’s about giving your future self a break.

2. Using the Wrong Savings Tools 

Another costly mistake is saving in accounts that don’t offer the benefits designed specifically for education. Many parents default to regular savings accounts because they’re familiar, but these accounts typically earn very little interest. Meanwhile, helpful options like 529 plans offer tax advantages that can make a meaningful difference over time. These plans allow money to grow tax‑deferred and be withdrawn tax‑free for qualified education expenses.

Some states even offer tax deductions or credits for contributions. Parents who skip these tools often miss out on growth potential and tax savings that could have stretched their dollars much further. It’s not about choosing the “perfect” plan—it’s about choosing a tool that works smarter, not harder.

3. Saving Without a Strategy 

The third major mistake is saving without understanding how different accounts affect financial aid. Many parents don’t realize that where money is saved—not just how much—is part of the equation. For example, money saved in a parent‑owned 529 plan is treated differently in financial aid calculations than money saved in a child’s name. Savings held directly under a child’s ownership can have a larger impact on aid eligibility.

This doesn’t mean you should avoid saving; it simply means understanding how different accounts are viewed can help you make informed decisions. A thoughtful strategy ensures you’re saving effectively without unintentionally reducing future aid opportunities.

These Are The 3 Most Expensive Mistakes Parents Make When Saving for College
Image Source: Shutterstock.com

Why These Mistakes Are So Common (And Why You’re Not Alone)

College planning feels overwhelming for a reason: it’s a long‑term goal with moving parts, unpredictable costs, and emotional weight. Parents often feel pressure to “get it right,” which can lead to hesitation or avoidance. Add in the fact that financial tools and rules can be confusing, and it’s easy to see why so many families fall into the same traps.

The important thing to remember is that you don’t need to be a financial expert to make smart choices. You just need clarity, consistency, and a willingness to start—even if it’s imperfect. Every step you take now is a gift to your future self and your child.

Small Adjustments That Make a Big Difference

The beauty of avoiding these mistakes is that the solutions are simple and accessible. Starting early doesn’t require large contributions; even small, regular deposits can grow over time. Choosing the right savings tool doesn’t require deep financial knowledge—just a willingness to explore options designed for education.

And creating a strategy doesn’t mean predicting the future; it simply means understanding how different choices affect long‑term outcomes. These small adjustments can transform your college‑savings journey from stressful to empowering. You’re not just saving money—you’re building a foundation for your child’s future opportunities.

Consistency Beats Perfection Every Time

Parents often worry about whether they’re saving “enough,” but the truth is that consistency matters far more than hitting a specific number. Regular contributions, even modest ones, build momentum. Choosing tools that support growth and tax advantages amplifies your efforts.

And understanding how savings interact with financial aid helps you avoid surprises down the road. You don’t need to have everything figured out today. You just need to take the next step, and then the next one after that.

Your Future Self Will Thank You for Starting Now

Saving for college doesn’t have to feel like climbing a mountain. By avoiding the three biggest mistakes—waiting too long, using the wrong tools, and saving without a strategy—you set yourself up for success. You’re not just preparing for tuition bills; you’re creating options, reducing stress, and giving your child a strong start. You can begin today, even with small steps. Your future self—and your future graduate—will be grateful for the choices you make now.

What’s the biggest challenge you’ve faced when trying to save for college? Talk about your experience in the comments.

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7 ‘College Assets’ That Are Actually Disqualifying Your Child from Financial Aid

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7 'College Assets' That Are Actually Disqualifying Your Child from Financial Aid
Image Source: Shutterstock.com

Fayetteville, GA, parents are sounding the alarm. Across the state line, Volusia County, FL, families are discovering a hidden reality that has quietly shifted for the 2025–2026 financial aid season: seemingly innocent “college assets” can now disqualify students from critical funding. This is not a hypothetical loophole—it’s a structural change that has been implemented with minimal notice, leaving families across the Southeast exposed. The quiet rollout means students and parents may already be sitting on financial landmines they never anticipated.

According to 2026 FAFSA regulations, any savings account, trust fund, or custodial account in the student’s name counts against need-based aid eligibility—even if the funds were earmarked for basic educational expenses.

Data from the National Center for Education Statistics shows that many students who reported family assets above $15,000 are already ineligible for certain Pell Grants and state-level programs in Georgia and Florida. Local legal frameworks are tightening the screws: Georgia HB 268 now requires detailed reporting of student-held financial instruments as part of behavioral monitoring, and Florida Statute 39 mandates disclosure of all parental and student assets in certain welfare and educational audits.

7 'College Assets' That Are Actually Disqualifying Your Child from Financial Aid
Image Source: Shutterstock.com

The Social Mandate

The “Authoritative 2.0” movement has raised the stakes. These days, parents attempting friction-maxxing—pushing for maximal educational output while maintaining social capital—are discovering that conventional wisdom no longer protects their wallets or their children’s futures.

Modern burnout in high-performing families intersects with financial aid compliance: failure to track assets meticulously is no longer a minor misstep—it is a financial death sentence for students attempting to secure grants or subsidized loans.

Parents are hemorrhaging cash, privacy, and future opportunities. Ignoring these asset traps guarantees high-interest private loans, depleted credit, and the loss of social capital among peers who successfully navigate the 2026 school policy maze. Here are the seven ‘college assets’ that disqualify your child from financial aid:

  • Custodial Savings Accounts – even small balances trigger eligibility recalculations.
  • Trust Funds with Minor Beneficiaries – a legal trap parents underestimate.
  • Cryptocurrency Holdings – volatile, yet fully reportable.
  • High-Value Gifts – inherited vehicles or stock gifts count against aid thresholds.
  • 529 Plan Misreporting – improper reporting can void multiple aid applications.
  • Side Business Earnings – small LLCs under a student’s name are audited aggressively.
  • Digital Assets – NFTs and other tokenized property now fall under reportable financial instruments.

Time To Fight For Your Children

Parents: are you willing to risk your child’s financial security for perceived social inclusion? Or will you enforce ruthless transparency to protect college funding? Comment below—choose your side.

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Are Parents Obligated to Pay for Their Children’s College Education?

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Group of students going to study on campus. Friends are walking around university. Happy Boys and girls. AI generated man and woman
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The soaring cost of higher education has sparked a complex debate: are parents obligated to pay for their children’s college expenses? This question touches on legal, financial, and ethical considerations that vary widely among families. While some view it as a parental duty to support their children’s academic aspirations, others believe that students should take responsibility for their own education. Understanding the nuances of this issue can help families navigate the expectations and responsibilities involved. The decision ultimately depends on individual circumstances and values.

1. Legal Perspectives

Legally, parents are generally not required to pay for their children’s college education once the child reaches the age of majority. However, in divorce or separation cases, some court orders may mandate educational support as part of child support agreements. These legal frameworks vary from state to state and country to country. It is important for parents to be aware of their legal obligations and rights. Consulting with a legal expert can provide clarity on this complex issue.

2. Financial Considerations

Many families use the concept of an Expected Family Contribution (EFC) to assess their ability to pay for college. While the EFC is primarily a tool for financial aid determination, it also reflects a family’s financial capacity. Parents must balance supporting their children’s education with their own financial well-being, including retirement savings. Open discussions about finances can help set realistic expectations for college funding. Each family’s situation is unique, requiring a personalized approach to financial planning.

3. Ethical and Emotional Factors

Beyond legal and financial obligations, many parents feel a moral duty to help their children succeed academically. Providing financial support can strengthen familial bonds and offer opportunities that might otherwise be unattainable. However, it is also important for children to learn financial responsibility and independence. The ethical balance involves ensuring that support does not foster dependency. Honest, ongoing conversations about money and expectations are key to maintaining mutual respect.

4. The Role of Scholarships and Loans

Scholarship. Piggy bank, graduate hat, books and coins on light grey table. Speech cloud with word coming out jar
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Encouraging children to apply for scholarships, grants, and student loans can alleviate some of the financial burdens on parents. Many students successfully secure funding that reduces the overall cost of education. This approach not only eases the financial strain but also teaches valuable lessons in self-reliance and resourcefulness. Combining parental support with external financial aid can create a balanced strategy. This model promotes shared responsibility in funding higher education.

5. Long-Term Family Goals

The decision to pay for college should be aligned with the family’s long-term financial goals. Supporting education is a significant investment, and parents must consider its impact on their overall financial health. Developing a comprehensive financial plan that includes education funding, retirement, and emergencies is essential. Balancing immediate educational needs with future stability requires careful thought. Collaborative planning can ensure that both educational aspirations and family security are maintained.

It’s A Deeply Personal Choice

Deciding whether to pay for your child’s college education is a deeply personal choice that encompasses legal, financial, and ethical dimensions. Open communication and careful planning are crucial in making a decision that works for your family. There is no one-size-fits-all answer, and each situation must be evaluated on its own merits. By considering all factors and discussing expectations, families can arrive at a solution that supports both educational success and long-term financial well-being.

What are your thoughts on this issue? Have you navigated this decision in your family? Share your insights in the comments below!

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College Doesn’t Have to Cost a Fortune

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Person Holding Their Graduation Cap in the Air

I have three children—one is attending a community college, and the other two are finishing up 7th and 8th grade. I have immersed myself in learning about the college application process and how to pay for college and get merit scholarships. What I am finding makes me a bit sad. So many students are taking out loans for tens of thousands of dollars, but college doesn’t have to cost a fortune.

We Won’t Take Out Parent Loans

My husband and I agree that we won’t take out parent loans for our children’s college. Every parent has to decide if they’re willing to go into debt for their children’s educations, and we’re not. My husband and I both attended graduate school and started our careers in our late twenties and early thirties, so we must make up for lost time regarding retirement. We are choosing to prioritize our retirement over our children’s education.

We’ll Encourage Our Children Not to Take Out Loans

Likewise, we encourage our children not to take out loans. But, if they must, we don’t want them to take out loans for more than $15,000 to pay for their four years of school.

Based on our own experiences, students tend to think they’ll pay off their student loans quickly, but then life interferes. The jobs they get after college may not pay as well as they thought they would, or they may want to start a family and find one person needs to pause their career to take care of the child. If they both continue to work, daycare can be expensive.

It’s better not to get loans at all, if possible. If not, keeping the loans to a minimum is important for our family. Federal student loans are often less expensive than private loans, so if your kids have to borrow, going with Uncle Sam is marginally better.

We Encourage Our Kids to Pursue Merit

We’re also encouraging our kids to pursue merit scholarships. Our son got a scholarship to a community college; the remainder of the balance for his tuition is low enough that my husband and I can pay it. Our son will not have any student loans during his first two years of college.

They’ll Stay Local If Necessary

Girl studying with a book on her lap

Our two younger children plan to apply to several colleges and see if they get merit aid. If they don’t, we’re lucky to have several colleges and universities within 30 minutes of our house. They will choose one of those schools rather than go into debt to pay for college.

Final Thoughts

Every family must decide what is best for their children when it comes to choosing a college and paying for it. However, college doesn’t have to cost a fortune. My husband and I have told our children how much money we have to help them through school. To make up for the difference, they’ll have to get merit aid or choose a local school. Using this plan, they should graduate with no or minimal debt, and my husband and I won’t have to take out any parent loans.

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