The University of Pittsburgh is rolling out a free-tuition program for in-state students whose families earn $75,000 or less, opening a new path to a four-year degree at four of its regional campuses.

Why it matters: The Pitt Regional Campus Tuition Pledge eliminates tuition charges entirely for eligible Pennsylvania residents — a meaningful expansion of access in a state where regional campus enrollment has been slipping for years and where annual tuition at Pitt's branch campuses runs roughly $14,000 to $15,000 for in-state students.

For example, here is the current cost of attendance at PittBradford:

The details:

• Eligible families: Pennsylvania residents with household Adjusted Gross Income of $75,000 or less
• Covered campuses: Pitt-Bradford, Pitt-Greensburg, Pitt-Johnstown, and the Pitt-Titusville nursing program
• Effective term: Fall 2026
• Applies to: New first-year students, transfer students, and currently enrolled students
• How to qualify: File the FAFSA each year — no separate application

How the money works: The pledge is structured as a last-dollar benefit. Pell Grants, Pennsylvania State Grants administered through PHEAA, and any institutional scholarships are applied to tuition first. Pitt then covers whatever tuition balance remains, bringing the tuition line to $0 for every eligible student.

What's not covered: The pledge applies to tuition only. Students still pay for housing, meals, textbooks, and required fees. At Pitt's regional campuses, those non-tuition costs typically run $12,000 to $16,000 a year for students living on campus, meaning families should still expect a real out-of-pocket bill or a need to borrow.

The bigger picture: Pitt joins a growing list of public flagships using last-dollar tuition pledges to compete for in-state students. Penn State has Penn State Promise. Temple offers Temple Promise. The University of Michigan's Go Blue Guarantee covers families up to $125,000. Free-tuition pledges have become a standard tool for boosting yield among middle-income families who don't qualify for full Pell Grants but feel priced out of sticker-price tuition.

How this connects: Tuition-free programs only solve part of the affordability problem. The College Investor's coverage of Pennsylvania financial aid and student loan programs has long flagged that PHEAA State Grants (which max out around $6,000 for the 2026-27 award year) combined with a maximum Pell Grant of $7,395 still leave most students short of the total cost of attendance once room and board are factored in. 

That gap is why even "tuition-free" students often end up borrowing. Pennsylvania residents pursuing this pledge should still review state-specific aid options and forgiveness programs before signing for student loans.

What to watch: Two things. First, whether Pitt expands the pledge to its main Oakland campus, where tuition is roughly double the regional rate and where the income threshold would need to climb to be meaningful. Second, whether the regional campuses see an enrollment bump for fall 2026, a key signal of whether income-based pledges actually move the needle on access at branch campuses, which have struggled with declining demand across the Northeast.

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Tuition-free colleges exist, you just have to know where to find them. The cost of college in the United States has steadily been rising, and these colleges are pushing back - especially at the most expensive colleges.

The promise of free college tuition is a strong draw for college-capable low-income students. But, many free tuition programs come with caveats that cause them to fall short of the promise. 

Let's break down what you should know about tuition-free colleges, along with a list of some U.S. colleges that are tuition-free. We also share some foreign colleges that also have free tuition programs that may be of interest.

You might also want to dive in to our The College Investor Guide on How To Pay For College.

How These Free Tuition Policies Work

Every school is allowed to set its own financial aid policy. Most colleges that advertise “free tuition” still expect students to meet other eligibility criteria, such as filing the Free Application for Federal Student Aid (FAFSA), maintaining enrollment status, and meeting income thresholds. 

Free tuition typically covers only the cost of tuition - not the full cost of attendance. Students may still be responsible for fees, housing, meals, books and other costs. However, many schools are offering tiered policies that may cover tuition at one tier, and the full cost of attendance at another.

For example, Harvard offers free tuition to families making less than $200,000, but will cover all costs (including housing) for families making less than $100,000 per year.

List Of Colleges With Free Tuition Or Income-Based Tuition Waivers

Below is a non-exhaustive list of colleges that publicly advertise that they will cover tuition for undergraduate students under certain household-income thresholds. You might notice that many of these schools are also some of the most expensive colleges in America. Readers should confirm current eligibility directly with each institution.

Federal Work Colleges

Federally-recognized work colleges require all students who live on campus to work as part of the college learning experience, regardless of financial need. Six of these colleges provide students with free tuition:

• Alice Lloyd College (KY)
• Berea College (KY)
• Bethany Global University (MN)
• Blackburn College (IL)
• College of the Ozarks (MO)
• Warren Wilson College (NC)
  

There are also several colleges that aren’t federally-recognized work colleges, but where students are required to work and receive free tuition:

• Curtis Institute of Music (PA)
• Deep Springs College (CA)
• Webb Institute (NY)

Deep Springs College provides free room and board in addition to free tuition.

There are several trade schools which provide free tuition.

• The Apprentice School (VA)
• Williamson College of the Trades (PA)
  

The U.S. military academies provide free tuition, room and board. The students are required to serve in the U.S. Armed Forces after graduation.

• U.S. Air Force Academy (CO)
• U.S. Coast Guard Academy (CT)
• U.S. Merchant Marine Academy (NY)
• U.S. Military Academy (NY)
• U.S. Naval Academy (MD)
  

Related: Military And VA Education Benefits To Pay For College

No-Loan Financial Aid Policies

In addition to these colleges, there are dozens of colleges with “no loans” financial aid policies that provide free tuition to low-income students. These colleges include Ivy League institutions, MIT and Stanford University.

Other colleges that provide free tuition to all or some of their students include:

• Antioch College (OH)
• Arizona State University (AZ) – ASU College Attainment Grant
• Barclay College (KS)
• Haskell Indian National University (KS)
• Keene State College (NH) – Granite Guarantee
• Macaulay Honors College at City University of New York (NY)
• Plymouth State University (NH) – Granite Guarantee
  
• Sterling College (VT) – Wendell Berry Farming Program
• University of New Hampshire (NH) – Granite Guarantee
• Vanderbilt University (TN) – Ingram Scholars Program
  

Cooper Union for the Advancement of Science and Art (NY) previously provided free tuition for over a century, but had to start charging tuition in 2012 due to financial challenges. The college is raising money to enable a return to free tuition in the future. 

Medical Schools

Several medical schools provide free tuition to all students, regardless of financial need. These include Cleveland Clinic, Kaiser Permanente and New York University. Other medical schools provide free tuition based on financial need. These colleges include Columbia University, Cornell University and Washington University in St. Louis. UCLA provides free tuition based on academic merit.

Community Colleges

Some community colleges do not charge tuition. For example, the California College Promise Program, previously known as the BOG Fee Waiver, provides free tuition at community colleges in the state. Students whose family income is less than about 150% of the poverty line are eligible for the tuition and fee waiver.

At other community colleges, the combination of federal and state grants may be enough to cover the cost of tuition for some low-income students, such as students who are eligible for the maximum Federal Pell Grant.

Several states offer college promise programs that cover tuition at an in-state public college for students who graduate from a public high school. These programs include the New York Excelsior Scholarship, Oregon Promise, Rhode Island Promise and Tennessee Promise.

There are also hundreds of college promise programs offered by specific cities, such as the Kalamazoo Promise, Seattle Promise and Pittsburgh Promise. Most are last-dollar financial aid programs, where all other sources of financial aid are assumed to be applied to tuition before the remaining tuition is covered by the promise program. Full tuition is often limited to students who attended a public elementary and secondary school for 12 years, not just those who graduated from a public high school.

University of the People is an accredited online college that does not charge tuition, although it does charge course assessment fees.

The Campaign for Free College Tuition advocates in favor of free public college tuition programs.

Which Foreign Colleges Have Free Tuition?

Two dozen countries provide free public college tuition for their citizens. A few also provide free tuition to international students.

The following countries provide free tuition to international students, including U.S. students. However, some of these colleges teach classes in the local language, not English.

• Brazil (Classes taught in Portuguese)
• Czech Republic (Classes taught in the Czech language)
• Finland
• Germany
• Greece (Classes taught in Greek)
• Iceland
• Luxembourg
• Norway
• Panama
  

Free tuition does not include living expenses. In some of these countries, such as Norway, living expenses are high. (U.S. federal student aid can be used at about 400 foreign universities to pay for housing, meals and other college costs, but the funding is limited to federal student loans, not grants. 529 college savings plans can be used to pay for living expenses at these colleges abroad, but not transportation.)

Other countries, such as France, Slovenia and Sweden, are open to European Union (EU) citizens but not U.S. students.

A dozen countries provide free tuition only to their own citizens. These countries include Argentina, Austria, Denmark, Egypt, Kenya, Malaysia, Morocco, Poland, Scotland, Spain, Turkey and Uruguay.

Limitations On Free Tuition Programs

Although free tuition programs make college more affordable, there are several limitations that families should be aware of.

• Free tuition does not mean free college. Most free tuition programs cover the cost of tuition and fees but not room and board, books and supplies, or other college costs. Some do not cover fees, which can be significant at some colleges. At a community college, the textbooks can be a significant portion of college costs.
  
• Many free-tuition programs are last-dollar, meaning that all other sources of financial aid must be applied to tuition first before the free-tuition program covers the remaining tuition costs. This may prevent a student from using the Federal Pell Grant and state grants to cover living expenses and other college costs.
  
• The student may need to be a resident of a particular city or state. The student may need to have attended and graduated from particular public schools in the city. The student may have to agree to continuing living in the city or state for a number of years after college graduation.
  
• Some free-tuition programs require the student to enroll in college immediately after graduation from high school.
  
• Many free-tuition programs require the students to enroll in college full-time. The student may also be required to reside on campus.
  
• Some free-tuition programs are limited to students with demonstrated financial need or to Pell Grant recipients.
  
• Some free-tuition programs require all students to work a part-time job on campus. Others require the student to participate in community service during the academic year and summer.
  
• Some free-tuition programs require the student to maintain at least a minimum GPA, such as a 2.0, 2.5 or 3.0 GPA on a 4.0 scale.
  

Certain education tax benefits, such as the American Opportunity Tax Credit (AOTC), Lifetime Learning Tax Credit (LLTC) and tax-free scholarships, are based on amounts spent on tuition, fees and course materials (e.g., textbooks, supplies and equipment). If tuition is paid for by a free-tuition program, it may reduce or eliminate eligibility for these tax breaks.

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A new WalletHub survey of college students paints a picture of a generation under financial strain — questioning the financial return on tuition, feeling unprepared to manage money, and battling spending pressure from social platforms.

Why It Matters: The survey lands as outstanding student loan balances sit above $1.7 trillion and tuition continues to outpace inflation. Growing student skepticism about the value of college could shape enrollment, borrowing behavior, and demand for personal finance education on campus.

By The Numbers

WalletHub surveyed more than 200 full- and part-time students at two- and four-year schools, weighted to reflect U.S. demographics. Key findings:

• 28% don’t think their tuition is a good investment
• 52% say their school isn’t doing enough to make them financially literate
• 53% feel pressured by social media to spend beyond their means
• 33% say the federal government should not provide loans to schools with expensive tuition
• 30% rank student loan debt as their biggest post-graduation fear

Fear: Asked about their biggest post-graduation fear, students split four ways: 30% picked student loan debt, 29% said not finding a job, 25% chose credit card debt, and 16% said living with parents. Borrowing-related fears combined accounted for more than half of responses.

How This Connects: The findings track with separate research The College Investor has covered. A CFP Board survey of 2,025 undergraduates found 65% want more education on saving, investing, and managing debt — and 83% link financial well-being to their happiness. Federal data shows college costs have risen roughly three times faster than inflation since 1983, which helps explain why more than 1 in 4 students now question whether tuition pays off.

What's Next: Expect renewed pressure on colleges to expand personal finance curriculum, more debate over whether federal loans should flow to high-tuition programs, and continued scrutiny of how social platforms shape student spending. Schools that lean into financial literacy will likely set themselves up for a wealthier life.

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Of course, there are always variations on a theme, but in general, this is the order you should follow when paying for medical school and getting student loans for your medical degree.

Sallie Mae

Sallie Mae is probably one of the most well-known lenders on this list. They are the nation's largest private student loan lender by loan volume. As a result, they also offer some of the most competitive private student loans out there.

You can take out Sallie Mae student loans starting at just $1,000 (which is one of the lowest) and can borrow up to the total cost of education². Sallie Mae has a variety of repayment plans to select from, they offer residency or fellowship deferments in 12-month increments, limited to a total of 48 months of deferment⁴, and 12-months of interest-only payments after your grace period⁵.

Plus, they offer not just deferment, but a 48 month grace period on their medical school student loans too!

Read our full Sallie Mae review here.

Ascent Student Loans

Ascent Student Loans is a solid choice as a private lender - as they great graduate student loans for medical school. They also offer a solid loan amount range from $2,001 - $400,000*, competitive rates, and easy repayment terms.

They offer loans starting at just $2,001* minimum, and they offer 48 month loan deferment while in school, and a grade period to postpone full principal and interest payments up to 36-months after graduation, up to 9-months after leaving the program, or otherwise dropping to less-than-half-time enrollment.

Read our full Ascent Student Loans review here.

Medical School Loans For International Students

International students cannot get US Federal Student Loans. As a result, international medical students who need assistance have to look at private medical school loans. But again, this can be a real challenge as most traditional lenders require borrowers to be a US citizen.

However, there are two options for international student loans. Prodigy allows international medical students to borrow up to $220,000. They also don't require a US cosigner, and have various repayment options. Check out Prodigy here >>

Another option is MPower. They have a lower lifetime limit of $100,000, but also may be a good choice for international students.

Shop And Compare

There used to be more medical school-specific lenders, but the student loan marketplace is changing. Beyond these lenders, you might have luck comparing your options on platforms like Credible or Splash.

Between Credible and Splash, you can compare many lenders in the market.

Medical Residency Loans

After you finish medical school, you must do your residency in order to become a doctor. However, traditional student loans don't cover residency, and your small salary may not be enough for you depending on what your needs are (and those of your family). You might also have to relocate for your residency, and have other fees as well.

That's where medical residency and relocation loans come in. They can help you cover the costs of moving and relocating for residency, as well as help pay for any exam fees and more.

For example, the Sallie Mae Medical Residency and Relocation Loan will provide up to $30,000 to cover board examination fees, travel, and moving expenses for your medical residency. Check out this Salle Mae option here >>

We have a full guide on this here: Where to Find Medical Residency and Relocation Loans >>

About 18% of parents take out parent student loans to pay for their children's college education. 

When a child’s financial aid package doesn’t fully cover the cost of college, lots of parents in the United States can’t simply pay the difference, either out of their regular income or their savings accounts.

As a result, many parents look into taking out loans to cover the difference, either in the form of Direct Parent PLUS Loans from the federal government or private loans from banks and higher-ed lending companies.

This approach may seem smart and straightforward. After all, if your child is borrowing money on the premise that it’s worth going into debt for this education, isn’t it acceptable for you to do the same?

But there are significant differences between borrowing as a student and borrowing as a parent. These differences can make the short- and long-term costs of borrowing much greater for parents. Knowing the differences can help you make smart decisions about how you and your child can share the cost of their college education.

Note: We don't recommend parents ever borrow to pay for their children's education (remember the order of operations to pay for college). But, many parents will still do it, so here's what you need to know. 

Option 1: Parent PLUS Loans

Note: This is changing starting in 2026. Parent PLUS Loans are being significantly capped and benefits changed. Private loans may be better for borrowers after 2026. You should directly compare private loans to parent PLUS loans and see which offers a lower interest rate.

The first option you’ll encounter, possibly on the suggestion of a college financial aid officer or simply from an email from your child's financial aid office, is the Direct Parent PLUS Loan. These loans come from the federal government, much like the Direct Loans your child is offered as part of their financial aid package.

There are some basic eligibility requirements for these loans. Only biological or adoptive parents qualify for these loans — not grandparents or other guardians — and you must be a U.S. citizen, U.S. national, or permanent resident.

In general, you apply for Direct PLUS Loans in the same place your child did: StudentAid.gov, though in some cases, the application must go through the school itself. You are eligible to borrow the full cost of attendance, as determined by the school, minus any financial aid your child has already received, either in the form of scholarships or loans.

While the guidelines state that an “adverse credit history” may prevent you from receiving a Direct PLUS Loan, that just means you can’t have any major issues, like bankruptcy, in the past five years. There's no minimum credit score. And there are even ways to appeal a rejection due to an adverse credit history.

You will need to apply for a new loan each academic year, if necessary. But given that your financial situation might change from year to year, this isn’t the worst requirement.

Why Parent PLUS Loans Are Helpful: These loans are helpful because of the easier credit qualification. Basically, don't be delinquent or have a default, and you're approved. 

Using Direct PLUS Loan Money

Direct PLUS Loan money is disbursed directly to the school, usually twice in the academic year, and applied to the remaining balance owed. If there happens to be money left over when this is done, that money is sent to you to help pay for other educational expenses.

You can also have it given directly to your child for the same purpose. Given the cost of college course materials, this can be helpful.

The Cost of Direct PLUS Loans for Parents

The relative ease of accessing this money comes at a cost. The fixed interest rate for federal undergraduate loans made to students during the 2025-2026 academic year is 6.39%. For Direct PLUS Loans to parents, it’s 8.94%.

Both kinds of loans charge additional servicing fees for each disbursement, but where undergraduates are paying a little over 1% at the moment, parents are paying 4.228% of the loan value in fees.

That's pretty tough for parents - 9% interest rate, and the disbursement fee that eats your money.

Direct PLUS Loan Repayment Options

Repayment is another area where federal parent loans differ from student loans. Your child doesn’t have to start paying back their federal loans until they’re out of school, but you as the parent need to make a choice up front. 

Direct PLUS Loans go into immediate repayment, unless you opt for a deferment as part of the application process. Deferring the loan means you won’t have to start repaying the loans until six months after your child stops attending school at least half-time. This applies whether they graduate, drop out, or drop below the attendance requirement.

Direct PLUS Loans are not subsidized. So they’ll accrue interest while they’re deferred. You should consider this when assessing the long-term costs of taking out these loans. 

Student loans have a variety of repayment plans, but the options for Direct PLUS Loans are more limited. Starting in July 2026, the only option will be the tiered-standard plan. This also means that you cannot access loan forgiveness programs like Public Service Loan Forgiveness.

Read this article about the options for repaying your Direct Parent PLUS Loans.

Final Reminder: A Parent PLUS Loan is the parent's loan, not the student's. As such, the parent is the one who is legally obligated to pay the loan back. The parent is also the one who will face the repercussions if the loan isn't paid back. Borrow wisely.

Option 2: Private Parent Student Loans

The other option is to take out private loans. These generally come from banks or other dedicated higher-education lenders.

Your instinct may be that they must be more expensive than federal loans. And in the past, you may have been correct. But given the mandatory fees on top of the interest charged, federal PLUS loans are often more expensive, especially when interest rates are fairly low as they are right now.

That being said, private loans are more restrictive than Direct PLUS Loans in other ways. And no two institutions offer the same terms, so you’ll have to shop around. The citizenship and relationship restrictions on eligibility are generally the same as with federal loans. But your credit history will matter more when applying for a private loan, influencing the rate you get and even whether or not you qualify for a loan at all.

Most lenders offer variable- or fixed-rate terms and some offer multi-year loans. Others will discount your interest rate if you're already a customer or have your payments automatically debited from an account there. So if you’re interested in this route, it’s good to check the institutions you already bank with.

Unlike Direct PLUS Loans, where the maximum loan amount is determined by the cost of the school, many private lenders will have fixed maximums.

Note: Getting a parent student loan is different than co-signing your child's private student loan. In the case of a parent loan, you (the parent) are the primary borrower and your child does NOT cosign. They have no legal obligation to repay the loan. A private loan in the child's name (with you as a cosigner) does force them to have a legal obligation to repay the loan - but so do you as a cosigner. 

Private Loan Repayment Options

Lenders will vary on the repayment options they offer while you're child is enrolled in school. Some will require that payments begin immediately. But others are more flexible with their in-school payment options.

It's not unusual today to find private lenders offering interest-only payments, fixed $25 payments, or even full deferment until a few months after your child graduates. But keep in mind that even if you're able to defer payments while you're child is pursuing their degree, interest will continue to accrue each month on your principal balance.

Some institutions offer shorter or longer repayment periods in addition to the standard 10-year term, Extending your payment plan is likely to reduce your monthly payment amount, but it will typically also lead to higher overall interest costs.

Though it’s not something any parent wants to think about, PLUS loans are discharged if your child dies. That’s not standard for private loans, but many do offer it as a “benefit.”

Best Private Parent Loan Lenders

There are several lenders who will make private loans to parents. You can find our full list of the best private student loans here. 

The main parent student loan lender that isn't a state-based non-profit is College Ave:

Ascent Parent Loans

Ascent Student Loans offers parent student loans to help parents, guardians, and sponsors pay for their students' education. These loans are taken out by the parent to pay for college. Like all Ascent Student loans, there are no application, origination, or disbursement fees, and there’s no prepayment penalty if you pay off your loan early.

Parent loans offer repayment terms between 5, 7, 10, 12 and 15-year loan terms. Plus, receive a 0.25% discount when you enroll in automatic payments. 

Read our full Ascent student loans review here.

College Ave Parent Loans

College Ave is one of the main parent student loan lenders. They are also one of the largest private student loan lenders in the United States.

College Ave offers a variety of repayment terms, which are more flexible than other private student loan lenders. You can get loans for 5, 10, or 15 years. You must borrow at least $1,000, but you can borrow up to the cost of attendance.

College Ave also offers the ability to pay interest-only on the loan while the student is in school.

Read our full College Ave review here.

ELFI Parent Loans

ELFI (Education Loan Finance) also offers student loans to parents who want to pay for their children's education.

Parent loans are available starting at $1,000, and have repayment terms from 5 to 10 years.

Parent loans have the same repayment plan options as other private loans from ELFI - which includes immediate repayment, interest-only repayment, and deferred repayment while the child is in school.

Get a parent loan quote here >>

Read our full ELFI student loans review here.

State-Based Lenders

Another popular option for parent student loans that falls somewhere between “federal” and “private” is taking a loan from a state-based non-profit educational lending institution. These are often private or government-affiliated nonprofits chartered by the state to provide lending for college.

Most of them focus on lending directly to students, both undergraduates and graduates. But some do have parent loan products that combine some of the benefits found in both private and federal loans. Two popular state-centered lenders are RISLA and Brazos.

Brazos Parent Loans

Brazos also offer parents a private loan option that serves as an alternative to parent PLUS loans. These loans come with rock-bottom interest rates starting at under 3% for variable terms.

The benefit is for Texas residents and those with children attending college in Texas.

Read our full Brazos review here.

RISLA Parent Loans

Rhode Island’s RISLA offers some of the opportunities for discounting that you’d find with a bank loan while offering repayment flexibility like that of a Direct PLUS Loan. You can borrow anywhere from $1,000 to $50,000 as a parent.

They also offer various repayment terms, up to 10 years.

Read our full RISLA review.

Check out your state’s options before you make a decision. You can find a full list of student loan programs by state here >>

Danger Of Midlife Debt

Ultimately, the question isn’t,“Should I take out Direct PLUS Loans or private loans?”  It’s really, “Should I take out loans to pay for my child’s college education at all?” For many financial experts (including us), the answer is a resounding, “No!”

The most obvious reason to avoid taking out loans for your child’s education is the cost. But just looking at the dollar amounts alone isn’t enough. It's also important to consider that the repayment term for these loans will often overlap with your last decade of retirement contributions. If these loan payments cut into those savings — or worse, come out of your retirement benefits — they can significantly impact your own long-term financial stability.

Direct PLUS Loans come with very little debt counseling and does not take into account how much money it’s reasonable for someone to take on with their debt and credit rating. With no caps on borrowing beyond the school’s stated cost, this means that parents can end up taking on far more debt than they can handle at a time in their lives when many should be avoiding debt.

This problem is exacerbated by the fact that most parents take these loans out one year at a time, making it harder to grasp at the beginning what an expensive approach this is. Taking out a $10,000 loan when your child starts college might seem reasonable. But if you have to do that for four years, that’s $40,000 in principal. Take into account that tuition is likely to rise over those four years, and the cost of deferring repayments for four years, and this can be a staggering amount of debt.

Finally, it's important to remember that while your child may be eligible for loan forgiveness if they go into public service or teaching, that forgiveness does not extend to loans you took out on their behalf.

Who Really Benefits From Parent Loans?

Some argue that Parent PLUS loans serve a valuable purpose, making higher education available to lower-income families. But others have scrutinized these loans and even contend that they can be seen as a kind of predatory lending.

For parents who cannot draw on savings or tap into other resources for credit, the government freely loans money — at a cost. But it’s far less forgiving with parents than students when it comes to repayment. And if you can't make your payments, the government will not hesitate to take them out of your wages, Social Security checks, or tax refund.

Moreover, though the Department of Education penalizes colleges and universities when a certain percentage of their students default on loans, there are no such penalties for parent defaults. When your child’s school urges you to consider parent loans, they’re suggesting the option that brings them the greatest benefit while asking you to bear all of the risk.

Other Options For Parents

The other options for parents interested in making up the gap in funding often aren’t any better. This is especially true for low- and middle-income families.

One suggestion is to take out a home equity line of credit. Others say dip into your Roth IRA. For many, these are not possible, let alone advisable. And the suggestion that you should have opened up a 529 college savings account isn’t really helpful at this point in the process.

It’s easy to see why parent loans seem like the only option. But there’s one more option, and it’s the smartest one in most situations. Your child can focus on work, scholarships, or even take a gap year to build up some savings to pay for school. Check out our full order of operations to pay for college.

Even in today’s job market, your child will hopefully have many more years to pay back their loans. They will be able to get loans with lower interest rates, lower fees, and more time and flexibility for repayment, including loan forgiveness programs.

You can assist them in other ways, by helping them minimize their own college debt and maybe even making some of their loan payments (if you're in a position to do so without impacting your own stability). And one of the best things you can do for your children is have an open conversation with them about the risks and rewards of borrowing money in general.