If you’re a parent who’s saving up for college, you’re going to want to read this.
A recent Bloomberg article highlighted how difficult it is for parents trying to avoid racking up debt for their children’s education. [1]
The report says the average cost for a four-year college degree has risen roughly 40% since 2000 when adjusted for inflation. At the nation’s most selective schools, the cost is now brushing up against the $100,000 mark.
A 2023 survey found nearly three-quarters (70%) of parents of college-bound kids worried about having enough funds. [2]
Licia Paulu, a Pennsylvania resident, told Bloomberg that she’s juggling calculators, merit aid offers, and scholarship hunts just to trim college sticker prices for her twins.
Families who are planning for college, like Paulu’s, have to be strategic.
“It used to be you applied to three or four schools and you got in — now you’re kind of gaming it,” Paulus said.
“I am doing everything within my power to avoid them or myself taking on debt,” said Carolyne Soper, a mom of three, to Bloomberg. One of her children has received a tuition waiver and the other has tuition covered, a monthly stipend and an additional merit award that covers his room and board.
She’s hoping her third child will attend the college she teaches at for two years and then transfer.
The average in-state cost of tuition and fees to attend a ranked public college is $11,371 for the 2025-2026 year, nearly 75% less than the average sticker price of $44,961 at a private college, U.S. News data shows. [3] The average cost for out-of-state students at public colleges comes to $25,415.
But it’s not all as straightforward as it seems.
“Private schools can often make up the price gap through tuition discounts and institutional aid,” says U.S. News. It cited a study that said 286 private nonprofit colleges and universities reported an average estimated tuition discount rate of 56.3% for full-time, first-time students in 2024-2025 — the highest since the 2015-2016 academic year.
Bloomberg cited a study by Phillip Levine, an economist at Wellesley College, that showed that only 16% of students enrolled in private colleges paid the full price in 2019. Discounts seem to be the rule, not the exception.
The College Board also finds that the net price students actually pay doesn’t usually match up with those sky-high sticker prices thanks to grant aid. [4] It says the average net tuition and fees paid by first-time full-time in-state students enrolled in public four-year institutions declined to an estimated $2,480 in 2024-25.
Economists call this the “high-cost, high-aid” model, where schools deliver sticker shock, but quietly let financial aid do the real price-setting.
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Making things even more confusing for parents is the fact that colleges don’t all play by the same pricing rules. Some schools post jaw-dropping sticker prices but hand out hefty merit aid discounts. Others keep their posted rates lower but don’t offer as much in the way of aid. Schools also use different formulas to figure out who gets how much help, and suddenly, “what college really costs” is more art than science.
The federal government makes schools offer a net price calculator, but they’re not standardized and accuracy can vary. The assumptions of one school’s calculator may be completely different from another.
If you’re a parent worried about these eye-watering prices, now you know that the real out-of-pocket cost depends on a mix of calculators, aid packages, a little bit of strategy and a lot of research. Here’s how to figure out how much college will cost:
Every college is required by law to post a net price calculator (NPC). You plug in your income and assets, and it gives you an estimate of what you might pay after grants. They are handy but not perfect. Some calculators use outdated data or different formulas, so treat the results as ballpark figures. Take screenshots and save them so you can compare. Focus on net price, not sticker price, so that you can compare schools apples-to-apples.
Grades, test scores, and even extracurriculars can unlock merit scholarships. Parents know that encouraging GPA boosts, prepping for the SAT/ACT and applying to schools known for generous aid can slash the final bill. Apply broadly and target schools known for strong merit aid.
Got one good aid package? Use it as leverage. Families sometimes bring a rival school’s offer back to the financial aid office and ask for a match or a bump. If an offer comes in and you cannot afford the net price, ask if a school can reconsider, especially if you have a better package elsewhere. Sometimes this helps clear misunderstandings or highlights details about the student that may have been missed. It’s not guaranteed, but admissions and aid officers do reopen files, especially if they know a student has options.
The Free Application for Federal Student Aid (FAFSA) is still the gateway to federal grants and low-interest loans. Even if you think you won’t qualify, fill it out. Pair it with the Department of Education’s estimator to see what federal aid might look like. You don’t want to leave money on the table.
Once those award letters land, call the financial aid office with specific questions. Ask them to explain how the numbers were calculated, whether grants are renewable, and what other costs (books, lab fees, travel, parking) might show up later. A 15-minute phone call can turn a fuzzy estimate into a real budget.
Think tuition is the full cost? Don’t forget about room, board, travel, books, and fees, which often make families borrow more than expected.
As a parent preparing for their kids to go to college, be prepared for sticker shock, but understand that the final bill often looks very different. Families who put in the legwork by running the numbers and asking questions can cut borrowing substantially. That said, loans haven’t disappeared. Many grads still leave school with debt, but the smart use of aid and discounts can lighten the load.
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Bloomberg (1); Discover (2); U.S. News (3); The College Board (4)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
