Planning for college costs with confidence

Paying for college can feel overwhelming, especially as costs shift and new policies take effect. But with the right information and a plan in place, you can approach each step with more confidence and less stress. Here’s what you should know about college funding and how to prepare for what’s ahead.

A changing student loan landscape

Recent federal legislation is reshaping how families pay for college. The “One Big Beautiful Bill Act,” signed into law on July 4, 2025, introduces significant changes to federal student loans, with many taking effect starting July 1, 2026.

Some of the biggest shifts include:

• Limits on Parent PLUS loans: Families can no longer borrow up to the full cost of attendance. New borrowing limit caps, such as $20,000 per year, mean many households will need to find additional ways to cover the gap.
• Changes for graduate students: Grad PLUS loans are being eliminated for new borrowers to shift the government’s financial aid focus toward undergraduate education and workforce training.
• Simplified repayment options: Borrowers will choose between a standard plan or a new income-driven option, with forgiveness after 30 years.

Federal aid may no longer cover the full cost of college. Planning ahead and understanding your full funding picture matters more than ever.

Hidden costs that catch students off guard

Tuition is only part of the story. Many families build their budgets around this big, visible expense then feel surprised when smaller costs start to add up quickly. Some other common expenses to plan for include:

• Books and course materials: Textbooks, digital subscriptions and lab access fees can exceed $1,200 per year, with costs continuing to rise.
• Transportation and parking: Gas, parking permits and public transit can make getting to and from campus cost hundreds each semester.
• Technology and equipment: From laptops to specialized software, today’s college experience requires reliable technology, often with added costs depending on your major.
• Living expenses: Things like insurance costs, room and board, storage for personal items during breaks when dorms are closed and medical care can be very high and are not generally accounted for in the tuition.

By using student discounts, campus resources and lower-cost options like used textbooks or shared transportation, you can lower the cost of additional college expenses. We also recommend creating a spending plan so you can spread out or reuse costs whenever possible.

Explore and apply for financial aid

Filing the FAFSA (Free Application for Federal Student Aid) is the starting point for most college funding. It’s a free application that helps determine your eligibility for grants, work study, federal student loans and even some scholarships.

Ways to find and maximize financial aid:

• Complete the FAFSA as early as possible each year to access the widest range of aid options
• Review your financial aid offer (award letter) to understand what money is “free” vs. loans
• Prioritize scholarships and grants first since they don’t need to be repaid
• Search for local and national scholarships through trusted platforms or your school’s financial aid office
• Check eligibility requirements carefully, including how funds can be used and renewal rules

Taking the time to explore all your options can significantly reduce your out-of-pocket costs. Start by completing your FAFSA and setting aside time each week to search and apply for scholarships.

Why applying early (especially in June) matters

Timing plays a bigger role than many families expect. Most tuition bills are due in July or August and we recommend applying for any additional funding up to two months in advance—making June the ideal time to act.

Starting early also gives you benefits like:

• Time to understand your financial aid package
• Flexibility to compare funding options
• Less pressure to make last-minute decisions
• A clearer plan of what you can afford and what you still need before deadlines arrive

Trying to estimate your entire year’s college costs upfront is a big task. Traditional student loans often require you to borrow a lump sum, which can lead to borrowing too much or too little. Applying early helps you see exactly how much you need to avoid this common challenge.

Traditional student loan alternative

With rising costs, policy changes and unexpected expenses, many families are looking for a more adaptable way to fund college. One option to explore is an education line of credit, which works differently than a traditional private loan. At Credit Human, our unique education line of credit is designed to make paying for college easier, whether you’re an undergraduate or graduate student.

Some advantages include:

• Apply once for a multi-year credit line
• Borrow only what you need, when you need it
• Pay interest only on what you use (vs. the entire lump sum)
• Adjust what you borrow as your needs change from semester to semester

As a not-for-profit, member-owned cooperative, we are designed to prioritize the financial wellbeing of our members over maximizing corporate profit. Unlike traditional private student loans, which are often single use and inflexible, we provide multi-year lines of credit to reduce unnecessary debt and better serve students and families.

Personalized guidance for your college funding search

College planning is financial planning, and you don’t have to tackle it alone. Our number one priority is to help build communities free of financial stress. We’re here to help you explore your options, understand the full picture and choose what works for you. Explore our student loan options to learn more about how you can finance your college education and take the next step with confidence.