Should parents pay for college? How to decide | Earnest

Should parents pay for college? How to decide if you can afford to help pay for school

By Carolyn Morris | Published on March 6, 2026

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Is your child starting to talk about what they want to major in and where they want to go for college? As the parent of a high school student, you will likely have been thinking about how to pay for this dream education for much longer.

Talking about money and setting expectations can be uncomfortable, but is an important part of your child’s financial education. Not every parent is in the position to pay for the total cost of attending college. Being upfront with your student will help them make informed decisions for their future education.

Can you afford to help your child pay for college?

Sometimes it isn’t a question of ‘if’ you want to pay for college, but if you can. Here are some questions a parent should ask themselves when deciding how much they can chip in for college.

Do you have debt currently?

If you currently have debt, especially high-interest, you might not be in a good position to borrow further to help pay for your child’s education. Securing your financial future and paying more than the minimum on high-interest debt should take priority. You can also take proactive steps to pay down debt quickly before they graduate.

Can you afford payments for loans or tuition?

Do some quick math with the total semester cost for the schools that your child is interested in. Some colleges have a cost calculator available online to help you get an accurate number.

If less expensive colleges are within your budget, talk it over with your child and see if the differences between the schools are worth the debt your student might have to take on to make up the difference. Explore options for top colleges with low-cost out-of-state or in-state tuition.

Read More: How to lower your student loan payments

Do you have an emergency fund saved?

Emergency funds are meant to be spent on unseen events that need cash on hand. Think of why you made that fund, and what would happen if you didn’t have that money available for an emergency.

If you don’t have an emergency fund, then consider building one before making payments toward your student’s college expenses. Chances are the downsides of not having that cash on hand for an emergency is greater than taking out a student loan.

Are you saving enough for retirement?

Before you invest in your child’s future, make sure you aren’t putting yourself in a bad financial situation. Retirement savings should take priority over college contributions because your child has more options for financing their education, such as scholarships, grants, and loans, while you have limited alternatives for funding retirement.

Review your current retirement plan and contributions to ensure you’re on track to meet your goals. Financial specialists often recommend saving at least 15% of your annual income for retirement, though this may vary depending on your age and financial situation. By prioritizing your retirement savings, you’re not only securing your future but also avoiding becoming a financial burden to your child later in life.

How to help your child afford college (whether you’re helping pay or not)

Maybe you can’t help your child pay for college, but there are ways to help them borrow smart. Support your student in their search for the right school, apply for financial aid, determine budgeting, and a plan to pay back any funds borrowed.

Have a money discussion with your child before they apply

Before your child starts ranking schools, make it clear that the cost of attendance is an important factor. College counselors recommend applying to academic safety, goal, and dream schools; you should factor into this mix schools that are within budget if you don’t receive much aid.

Discuss strategies for working while in school to help further close the affordability gap. Make sure your student knows how to effectively budget their time for classes and homework before taking on a job.

Read More: How to pay for college: the step-by-step guide

Help your student file the FAFSA

Filing the Free Application for Federal Student Aid (FAFSA) is essential for securing financial aid for college. Here's what you need to know:

Dependency Status

Most undergraduate students are considered dependent for FAFSA purposes, even if they are financially self-supporting. This means they must include parental information unless they meet specific criteria for independence, such as being 24 years old, married, a veteran, or having dependents of their own.

Required information for filing

To complete the FAFSA, gather the following:

Ensuring you have these documents ready will streamline the FAFSA completion process and help maximize your eligibility for financial aid.

Borrow federal aid and encourage your child to apply for scholarships

Interest-free money should be your first resource when paying for school. Financial assistance that does not require students to pay it back (think scholarships and grants) should be prioritized first. After you’ve exhausted all of your potential interest-free and free money sources, then it makes sense to apply for additional sources of support such as Federal loans and private loans.

Applications might feel tedious for students who are burned out from applying to schools. Explain to your student that this is like a part-time job; the more money they receive in scholarship or grant money, the less they will have to pay off later.

Borrow Parent PLUS Loans if you can afford to

PLUS loans are federal loans that parents of dependent undergraduate students can take out to help pay for college or career school. Applicants and their child will have to meet the Department of Education’s general eligibility requirements for federal student aid.

Parents should also consider loan options for student borrowers, like Direct Subsidized and Direct Unsubsidized Loans, where the primary borrower is the student and decide which is the best option for your family’s financial situation.

Help your child compare private student loans

Private student loans can help close any affordability gaps left when paying for college. Review all the options on the market and decide what factors or perks each company provides are the most important for your family’s financial situation.

If you have a positive credit history and are willing to cosign for your child, it might help them get a better interest rate on their private loan. Most students don’t have a long credit history to review. Adding a cosigner who has agreed to support the student through the repayment process could give the loan provider further peace of mind (and a lower interest rate).

However, cosigning for a student’s loan means you are equally responsible for paying back the loan. Be sure you have a repayment plan with your child in place before cosigning a loan for their education.

Explore flexible student loan options for your family

Earnest offers private student loan solutions designed to meet your family’s unique needs—whether you’re supporting your child directly or co-signing together.

Cosigning a student loan Help your child qualify for potentially better rates and terms by cosigning a loan with Earnest. Our clear, transparent process makes it easy to understand your role and work together toward responsible repayment.

Private parent loans Prefer to take the lead? Earnest offers dedicated parent loans so you can cover education costs yourself—without adding to your student’s debt. With competitive rates and flexible repayment options, it's a smart way to plan ahead.

Flexible terms Earnest lets you tailor your loan to fit your financial goals. Choose from fixed or variable rates, pick your repayment timeline, and adjust your plan as life evolves.

Why families choose Earnest:

Whether you're co-signing or borrowing yourself, Earnest makes it easier to plan, pay, and support your student with confidence.

Visit Earnest's Private Student Loans to discover more about cosigning, parent loans, and other features designed for families navigating college costs.