As Tuition Bills Roll In, College Ave Shares Tips & Trends in Borrowing for College

Nearly half of families plan to borrow to cover college costs– here's how they can best prepare to borrow smart

WILMINGTON, Del., July 14, 2025 /PRNewswire/ -- For many families, their child's step into higher education comes after years of planning and preparation. A recent College Ave survey of 1,000 parents of current college students, conducted by Barnes & Noble College Insights™, found that nearly three-fourths of parents (73%) had set aside money for their child's education and most (94%) plan to help their child pay for college.

However, despite financial planning and saving strategies, less than half of families (46%) had a plan for how to cover the full cost of college. For some (27%), their child attended a school outside their initial budget. For others, around two-thirds found the cost of tuition and fees (67%) and room and board (65%) higher than they anticipated. Even school and activity fees and the child's personal expenses surprised around 4 out of 10 parents.

The true cost of college becomes clear by summer and the arrival of the first tuition bill. Families are in full swing, determining how to cover these costs – both expected and unexpected. And for nearly half of families (48%), that includes borrowing. Survey findings show these are the borrowing methods among parents who currently help or plan to help pay for school:

• Federal Student Loans – 41%
• Parent Loans – 18%
• Private Student Loans – 16%

Those using federal or private student loans plan to borrow, on average, $40,225 to help pay for their child's entire college education. Those using parent loans are willing to borrow, on average, $62,885.

"Parents do a remarkable job of supporting their children and planning for their future, with nearly three-fourths having already saved for higher education," said Dan Kennedy, Chief Marketing Officer, College Ave. "As tuition bills arrive, especially for first-year students, parents should make sure that they use all the methods available to them to pay for college. Borrowing can be a crucial piece of the financial puzzle for many families, which makes it important for families to take a thoughtful approach to loans."

Tips to Make That Tuition Bill Less Intimidating
Whether it's your first child's freshman year, or you're familiar with the process of paying for college, College Ave offers these tips and reminders when it comes to borrowing:

• Compare lenders. Take time to compare lenders. Look for competitive rates and flexible repayment plans that fit your family's budget, like those offered by College Ave, an award-winning lender. Read reviews, ask for recommendations, and make sure you're choosing a lender you can feel good about.
• Use a student loan calculator. For those borrowing student or parent loans, less than two-thirds (60%) of parents reported they understood what the monthly repayment amount would be. Use the College Ave student loan calculator to estimate your monthly payments and total cost of the loan to make sure it fits your budget.
• Consider a cosigner. For private student loans, taking out a loan with a cosigner with good credit can help you qualify for a lower interest rate, potentially saving you thousands of dollars over the life of your loan.
• Don't overlook the scholarship search. Half of families (50%) regret not spending more time researching and applying for scholarships, and many families forget that you can apply for scholarships throughout a college career, not just before freshman year. Look for quick and easy options, like the ongoing $1,000 Scholarship Sweepstakes from College Ave.
• Talk about cost-saving strategies with your student. One of the simplest ways to save money is to ensure your student is on track to graduate on time. Every additional semester can add thousands of dollars to the total cost of a college degree. Taking accelerated paths to graduation, like summer courses, can also be a great cost-saving strategy in the long run.

For families piecing together how to cover the first few tuition bills, College Ave offers helpful resources, calculators and guides. For more information on how to plan and pay for college, visit collegeave.com.

About College Ave
College Ave started with a big vision and a simple mission - take the stress out of paying for college so students can focus on preparing for a bright future. Now a leading financial services company, College Ave remains committed to using best-in-class technology and deep industry expertise to deliver practical and personal solutions that give young adults a running start on their roads to financial success. We offer straightforward products with competitive rates and a customer-friendly experience from start to finish. Visit: collegeave.com.

About the Survey
The College Ave survey was conducted by Barnes & Noble College Insights™. The national online survey of parents of undergraduate students who attend a 4-year college or university at one of the campuses served by Barnes & Noble College had 1,000 respondents and was fielded in April-May 2025. Last year, Barnes & Noble College Insights conducted more than 50 research studies and 100+ survey polls of students, faculty and parents that interact with one of its more than 770+ campus bookstores across the nation.

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SOURCE College Ave