How To Pay For College: The Best Order Of Operations

Paying for college can feel overwhelming, but a clear sequence of steps helps families stretch their resources and avoid taking on unnecessary debt.

Although many students rely on student loans, they should be the last resort. Student loans accrue interest, have long repayment periods, and can put families into financial hardship.

Snapshot: How Families Are Covering College Costs Right Now

Recent surveys show undergraduate families spent an average of $30,837 during the 2024-25 year. Parent income and savings covered about $15,754, and scholarships and grants accounted for roughly a quarter of total costs. Students also contributed through work, savings, and federal aid. Then, of course, student loans.

In fact, a study from the OneWisconsin Institute finds that it takes graduates of Wisconsin universities 19.7 years to pay off a bachelor's degree and 23 years to pay off a graduate degree. That's why you need to understand how much student loan debt you can afford to take out!