How Families Pay for College

How Do Families Cover College Costs in 2026?

Paying for college in 2026 usually involves drawing from multiple sources of funds. According to a recent report by Sallie Mae, 47 percent of college families borrowed money to pay for college in the 2025-2026 school year.

Most families piece together savings, income, financial aid, loans, and scholarships to cover tuition, housing, and everything in between. While parents often play a big part in helping to pay for college, students themselves can also take steps to minimize or even eliminate lasting debts. OVC Scholarship Network can point you in the right direction with resources intended to help cover the costs of tuition and other higher education expenses.

Building Up a College Fund Early On

Saving for college works best when families start while their children are young, even if the first deposits are small. A modest monthly contribution made over 15 years can grow into a real cushion, especially in a tax-advantaged account such as a 529 plan.

Setting a savings target starts with a few honest questions. Will your child likely attend an in-state public school, an out-of-state public school, or a private college? Out-of-state tuition can run far higher than the in-state rate, and private colleges often cost more still. Family size plays a big role as well. A household with three children needs a different plan than a household with one, especially if siblings overlap in college.

Does Your Household Qualify for FAFSA?

The Free Application for Federal Student Aid, better known as the FAFSA, is the form the U.S. Department of Education uses to decide whether a student can receive federal grants, work-study, and federal student loans. Many states and colleges also use FAFSA information to award their own aid.

A common myth holds that higher-income families should not bother applying. There is no income cutoff for filing the FAFSA. Income affects how much need-based aid a student receives, such as the Pell Grant, but families often need to file to access federal loans and some school scholarships. In general, a student must be a U.S. citizen or eligible non-citizen, have a high school diploma or equivalent, and enroll in an eligible program.

Students and families can apply online at StudentAid.gov. The student and any required contributors, typically parents for dependent students, each create an account and consent to having federal tax information pulled into the form. Filing early is smart, as some state and school aid is first-come, first-served. The FAFSA must be completed each year.

Taking Out Federal Loans

Federal student loans can take care of the remaining balance once savings, grants, and scholarships have been applied. For undergraduates, the two main options are direct subsidized loans and direct unsubsidized loans. The difference comes down to who pays the interest and when.

Subsidized loans are available to undergraduates who show financial need. The federal government covers the interest while the student is enrolled at least half-time, during the six-month grace period after leaving school, and during approved deferment periods.

Unsubsidized loans are available to undergraduate and graduate students regardless of need. Interest starts building as soon as the money is paid out, and unpaid interest can be added to the balance later. Paying that interest during school keeps the balance from growing.

Applying for Scholarships

Scholarships offer money that does not have to be repaid, and students can start applying as early as high school. These awards can come from colleges, employers, community groups, non-profit foundations, and local businesses. Some reward grades, while others focus on service, leadership, athletics, the arts, or financial need.

Families should steer clear of any scholarship that charges an application fee. OVC Scholarship Network provides a directory of verified scholarships for students from a variety of backgrounds.

OVC Scholarship Network Is Here to Help

Planning for college costs can feel intimidating, but families do not have to sort through every option alone. Whether your student is a high school freshman or a senior finalizing applications, it is never too early or too late to build a plan. If you have any questions about our funding opportunities, reach out to OVC Scholarship Network today by filling out our online contact form.