How the Typical American Family Pays for College

July 27, 2024
A group of people are moving into a college dorm room.

The typical family uses a combination of income, savings, grant aid, and loans to pay for college. For the past several years, income and savings from parents and students have consistently covered about half of the total cost, with grant aid covering about one quarter of the total cost and loans covering most of the remainder.


Starting a college fund early and aggressively looking for grant aid from colleges can help families reduce the amount they may need to borrow. A net price calculator, available on every college website, can help families estimate how much grant aid a student might receive at a particular college.

A father and daughter are walking down a street carrying a tote of stuff for college.

All Securities Through Money Concepts Capital Corp., Member FINRA / SIPC

11440 North Jog Road, Palm Beach Gardens, FL 33418 Phone: 561.472.2000

Copyright 2010 Money Concepts International Inc.

Investments are not FDIC or NCUA Insured

May Lose Value - No Bank or Credit Union Guarantee

This communication is strictly intended for individuals residing in the state(s) of MI. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Advisor Solutions Copyright 2020.

Woman wearing glasses and using her phone, sitting on a couch in a living room.
By TFC Team August 20, 2025
We go over three ways to build financial resilience. The three ways are to fortify your foundation, stress-test your portfolio, and anticipate future challenges.
An older woman with glasses thoughtfully looks off to the side, holding a pen.
By TFC Team August 20, 2025
A summary of how SECURE 2.0 Act which was passed in 2022 has improved 401(k) plans.
Person sitting at a desk with hands behind head, laptop in front. Purple shirt, yellow hair, neutral background.
By TFC Team August 20, 2025
A summary of benefits and how life insurance can be a useful tool to consider to help you in other areas of your life.
Older couple smiles while sitting on a porch; the man wears purple, the woman wears orange, and white furniture is in the background.
By TFC Team August 20, 2025
An infographic showing the relationship of boomer homeownership to retirement and aging.
Show More