How to Pay for College: Everything Parents Need To Know About College Funding

6 MIN. READ

 

Key takeaways:

 

• College costs vary widely, with tuition ranging from about $3,000 at community colleges to over $38,000 at private universities annually.
• Total college expenses go beyond tuition, including housing, books, transportation, and personal costs.
• Planning early and exploring cost-saving strategies, like community college, in-state tuition, or shared housing, can reduce the financial burden of college.

As a parent of a high school student, paying for college is likely one of your top priorities. And, with college costs on the rise every year, it's essential to start planning and saving for your child's education as early as possible.

In this blog post, we will break down the cost of college into tuition and fees, housing, books and supplies, college expenses, and transportation. We will also explore why tuition varies so much from school to school and provide some tips on ways to reduce college costs.

So, whether you're looking at private or public schools or wondering if a two-year college is right for your child, read on for all the information you need on college costs and how to pay for them.
 

College Cost Breakdown

The cost of college can vary a lot from one school to another. You also have to consider whether your child will pay in-state or out-of-state tuition, and whether they’ll live on or off campus.

We’ve compiled data from the Education Data Initiative and College Tuition Compare to give you a better idea of how much tuition costs depending on the school your child attends.
 

Postsecondary institution type	Average cost for annual tuition and fees
Public 4-year institution, in-state	$9, 750
Public 4-year institution, out-of-state	$28,386
Private 4-year institution, non-profit	$38,421
Private 4-year institution, non-profit	$15,868
Community college, in-district	$3,890
Trade school	$11,092

In Florida, community colleges tend to cost less than the national average, with typical costs of $2,880 per year on average for tuition and fees.

You also have to factor in other expenses, such as living on or off campus, books, supplies, food, transportation, and other day-to-day expenses.

The national average for living off-campus is around $11,518 a year, while living on-campus costs around $9,023 a year at a public institution, and $12,292 at a private institution.

However, due to rising rent prices in Florida, budgeting $21,658 a year for living off campus is more realistic.
 

Tuition and Fees

Tuition and fees can range anywhere from $3,000 to over $40,000 a year. Here’s what to consider:
 

• Schools calculate tuition on a per-credit basis. A college class allows your child to earn 3 or 4 credits, and most full-time students take 15 credits per semester.
• Attending school as a part-time student is a good way to spread out costs, while giving your child enough time to work.
• However, your child must take a minimum of 12 credits per semester to qualify for full-time financial aid.
• Some classes have additional fees, such as lab fees.
• Tuition typically increases with the level of study. Bachelor’s programs are generally less expensive than master’s and PhD-level courses.

Why Does Tuition Vary So Much?

Several factors contribute to the wide range of college costs. One of the most significant factors is whether a school is private or public.

Private Schools

Private colleges and universities are typically more expensive than public ones due to their smaller class sizes, ability to offer more scholarships, and higher-quality facilities and teachers. Also, they don't receive government college funding. Instead, they rely on private donors, endowments, and tuition to cover their operating costs. Alumni pass through the college, invest or leave money to the college in their wills, which also contributes to these funds.

Public schools

Public colleges and universities are usually less expensive than private ones because state or local governments subsidize them through federal college funding sources like the FAFSA. In addition, public schools typically have larger class sizes, which helps keep costs down. Also, like private universities, alumni from the college invest or leave money to the college in their wills, which can also contribute to these funds.

Another factor contributing to the cost of college is the school's location. Schools in urban areas are more expensive than in rural ones because of the higher cost of living in cities.
 

How Much Does Housing Cost for College Students?

Housing is another major expense you have to plan for. According to Realtor.com, the national monthly median rent is down in 2026 to $1,393 for a studio and $1,844 for a two-bedroom home. However, real estate prices are highly localized, and college towns tend to see a high demand for rentals, which means you may look at higher living costs.

Data from Zillow shows that rent is closer to $2,350 a month in Florida, with local markets like Miami or Jupiter exceeding the $3,000 mark.

In light of higher rental costs in Florida, here are some options you might want to discuss with your child:
 

• Looking into on-campus living to avoid local rent prices. However, this can lead to additional costs since your child may not have a kitchen to prepare food.
• If your child can drive or plans on attending school in a city with good public transit, renting a place that’s a few miles away from the school can be worth it.
• Sharing living expenses with roommates is also a popular option.
• Living at home and attending a local school is worth looking into.
• You can also save on housing by picking a school in another state. West Virginia, Arkansas, Mississippi, Oklahoma, and Iowa are generally considered more affordable when it comes to rent prices.

Books and Supplies

In addition to tuition and housing for college, students must invest in textbooks and supplies.

On average, college students are spending $340 a year on textbooks, but this cost can go up if your child is attending classes that require art supplies or software licenses.

The good news is that e-books are increasingly replacing printed textbooks, which helps bring the cost down. Your child may also be able to purchase second-hand textbooks to save.
 

Personal Expenses and Transportation

Finally, you should factor in college expenses and transportation when budgeting.

On average, students attending a public 4-year institution spend $3,790 a year on additional expenses, while this number is closer to $2,858 for students attending a private, non-profit 4-year institution.

Personal expenses are going to vary based on your child’s lifestyle. Here’s what you should factor in:
 

• Public transit if applicable.
• Car insurance and gas if applicable.
• Food and toiletries.
• Clothing.
• Laundry.
• Recreation.

And since your child will likely be living on their own for the first time, you may have to purchase some essential items for their new place, like furniture, small appliances, and more.
 

What About Financial Aid?

Your child may qualify for Federal Student Aid if you meet certain income guidelines. Student Aid can take the form of:
 

• Grants your child can apply toward the cost of tuition and other fees. There is no repayment.
• Scholarships, which are usually awarded based on their academic performance.
• Work-study positions that allow your child to work to earn money to help pay for college.
• Federal loans your child can borrow, which usually have lower interest compared to private loans.

Your child will have to complete a FAFSA application every year to see if they qualify for any kind of help.

Note that many families rely on a mix of federal aid, savings, and private student loans to pay for college. Before you borrow money for your child’s education, it’s important to understand how this decision will affect their finances in the future.
 

How Power Financial Credit Union Can Help You Pay for Your Child’s Education

At Power Financial Credit Union, our goal is to make higher education accessible to everyone. It’s why we give our members access to different banking products, including:
 

• Coverdell Education Savings accounts. Start saving early for your child’s education with these flexible savings accounts that come with tax advantages.
• Student loans. We offer student loans up to $100,000 with flexible repayment plans and competitive interest rates.
• Home equity loans. If you own equity in your home, borrowing against it can be an affordable way to finance your child’s education.

We also have student checking accounts with no monthly fees so that your child can learn to manage their own money once they’re away at college.

If you’re not sure about the best way to budget and pay for your child’s education, stop by one of our South Florida branches. Our team members are here to discuss your options and give you personalized banking advice.