Family

Your family

Parents are often expected to contribute to covering the costs of their children's education. The amount that they are asked to contribute is based on their financial circumstances, as well as the size of their family and the number of children attending college. Very low-income parents may not be expected to contribute anything.

The amount that parents are asked to contribute rises quickly with income and most parents find that they can not contribute the required amount out of current income, but must either use savings or borrow through education loan programs or other loans. More information on parent loans is available here.

Parents don't need to pay all of their contribution at one time. Books and supplies, rent, groceries, and other costs are incurred over the course of the year. Even tuition and fees are billed by semester or quarter. Some colleges offer payment plans that, for a small administrative fee, allow you to spread the payments out evenly over a number of months.

Whose Parents Are Expected to Help?

Most students under 24 are considered dependent on their parents even if their parents don't support them financially and will need to report their parents' income on their application for financial aid. Very low-income parents may not be expected to contribute anything. Parents of "independent students" are also not expected to contribute.

You are independent of your parents if you can answer "yes" to any of the following questions on January 1 of the year you plan to begin school.

• Are you 24 or older?
• Are you a veteran (not ROTC)?
• Are you married?
• Are you an orphan or ward of the court?
• Do you have a child or other dependent of your own?

Ways to Save for College

There are a number of smart ways to save for college, but any saving that you can do before college will help reduce your need to borrow while you are in school. Information about tax-advantaged ways to save is available here.

Federal Tax Benefits

The federal government provides a number of tax incentives for college, including credits, deductions and tax-free income. All have income limitations and other restrictions.