Parents have a few main financial aid options for students: federal aid, state aid, school-based aid, scholarships, savings plans, and parent loans. For dependent students, a parent’s information is usually required on the FAFSA, and parents may also be able to use a Direct PLUS Loan to help cover remaining college costs.

Quick Scoop

Here are the most common options:

  • Grants and scholarships. These are the best options because they do not need to be repaid. Federal, state, school, and outside scholarships can all reduce the amount parents need to cover.
  • Federal student aid. Parents help the student apply through the FAFSA, which can unlock Pell Grants, work-study, and federal loans depending on eligibility.
  • Parent PLUS Loan. This is a federal loan taken out by the parent to cover a dependent undergraduate student’s remaining costs after other aid is applied.
  • State aid. Many states offer grants or scholarships, often tied to FAFSA filing and state deadlines.
  • Institutional aid. Colleges sometimes give need-based or merit aid, and some require both FAFSA and extra forms like the CSS Profile.
  • College savings plans. 529 plans and similar accounts can help parents save tax-advantaged money for education expenses.
  • Payment plans. Schools may let families spread tuition over monthly installments instead of paying all at once.

Parent PLUS Basics

A Parent PLUS Loan is designed for parents of dependent undergraduate students, and it can be used to fill gaps left after the student’s other financial aid is awarded. A parent must meet federal eligibility and credit requirements, and the school’s cost of attendance helps determine how much can be borrowed.

Best First Steps

  1. File the FAFSA as early as possible.
  1. Apply for scholarships and grants before looking at loans.
  1. Check whether the school requires extra aid forms.
  1. Compare payment plans and savings options before borrowing.

Why this matters

For most families, the lowest-stress route is to combine free aid first with careful use of savings and only then consider parent borrowing. That approach usually keeps total debt lower and gives parents more control over monthly costs.

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