How to Help Your Kids Pay for College Without Going Broke

You want to set your child up for success, but the thought of student loan debt can be overwhelming. With the average in-state tuition at four-year public colleges reaching $11,011 a year — and that’s without room and board — it’s no wonder you’re unsure how to help your child pay for college without jeopardizing your own financial future.

And with student loan debt climbing to a staggering $1.75 trillion, you could even risk delaying your retirement if you end up shouldering those payments. But don’t panic! There are smart and practical ways to support your child financially while making the best monetary choices for your family.

Here’s a breakdown of the best strategies to help your kids pay for college without sinking your own financial ship.

How to Help Your Kids Pay for College Without Going Broke

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1. Be a Realist: Set Financial Boundaries Early

We’ve all experienced it: your kid’s eyes light up with excitement over a new dream. Imagine they have their heart set on driving a brand-new car to their part-time job, but your budget says otherwise. Would you stretch your finances just to make that happen?

The same thinking applies to choosing a college. If your child is focused on attending a prestigious, expensive school, but your finances are already tight, it’s time for a reality check.

Being realistic about what’s financially doable is crucial — and those conversations should start early, ideally before junior year. Discuss what you can afford and what matters most to your child academically, socially, and emotionally. Help them find a school that fits in all those areas — without the burden of overwhelming debt.

By setting clear expectations from the start, you’re helping them make a well-informed decision that won’t leave either of you in a financial strain.

2. Go on College Tours with Your Kids

When your child is touring colleges, it’s tempting to give them the freedom to explore independently — and, let’s face it, they might even prefer that. But you’ll want to tag along to help ensure they’re making an informed decision about one of the most significant financial investments of their lives.

Treat it like you would when purchasing a car or a home. Your presence on the tour allows you to help ask the right questions — especially the practical ones — that your child may overlook in their excitement. Plus, you’ll have the chance to observe whether the school is truly the right fit.

Before you go on that tour, schedule an appointment with the school’s financial aid office. Talking to a real person will give you an insider perspective on scholarships, grants, loans, and other financial options. When your child starts receiving acceptance letters and financial aid offers, having this contact will be invaluable as you compare award packages.

3. Invest in Advanced Placement and High Test Scores

One of the smartest ways to lower tuition costs is by investing in your child’s education before they even set foot on campus. This doesn’t necessarily mean putting money into a college fund — though that’s a great option if you can afford it. 

Instead, you can start small by paying for American College Test (ACT) or Scholastic Aptitude Test (SAT) prep courses. A higher test score can often mean more merit-based aid from the college, saving you (and your child) from taking out more loans. Many scholarships are awarded based on academic performance, so strong grades and test scores can help significantly lower the price tag.

Additionally, encourage your child to take Advanced Placement (AP) classes in high school. Scoring well on AP exams can translate into college credits, potentially allowing them to skip a few general education classes and save on tuition costs.

4. Understand How Your Financial Decisions Impact Their Aid

When your child fills out the Free Application for Federal Student Aid (FAFSA®), your finances as well as theirs are closely considered. This includes your previous year’s tax returns, so any significant changes in your financial situation could affect their eligibility for aid.

For example, if you’re planning to sell a major asset or take on a large financial obligation, consider the timing of that decision. It might be beneficial to delay those actions if you’re nearing the FAFSA® submission period, as they could reduce the amount of aid your child is eligible for.

Pro Tip: The money you have in your child’s name is weighed more heavily against their financial aid package than money held in your name. So, keeping funds in your own accounts rather than theirs could increase the aid they receive. This doesn’t mean hiding money — just being strategic about how it’s counted!

5. Scholarships, Grants, and Loans: Finding the Right Balance

Loans aren’t always avoidable, but they should be the last resort. Encourage your child to apply for as many scholarships as possible (like those found through the Going Merry app), starting in their junior year of high school. Scholarships can come from the school itself, private organizations, local businesses, or even community groups.

Grants are another form of aid that doesn’t need to be repaid. Federal and state grants are usually need-based, so completing the FAFSA® early is crucial to maximizing these opportunities.

Conclusion: The Best Parenting Move You Can Make

Helping your child navigate the college payment process may feel overwhelming, but with the right strategies, you can make it a win-win for both of you. By setting realistic expectations, exploring scholarships and grants, and making smart financial choices, you’ll set your child up for success — without sinking your own ship.

Your biggest parenting win might just be guiding them through this process, helping them avoid a mountain of debt, and protecting your financial future at the same time.

Check out these other helpful articles to help your kids pay for college:

18 Ways Parents Can Help With the Scholarship Process
How to Financially Prepare Your Child for College

Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

Daniel Bod

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