Your Child’s College Bill Doesn’t Have To Derail Your Retirement—Here’s How To Stay on Track

Core Insights - College costs are rising, with the average undergraduate expense for the 2024–25 school year estimated at $30,837, leading to financial strain on families [2][4] - Parents often underestimate the total cost of college, which includes not just tuition but also housing, food, books, and transportation [2][4] - Balancing college funding with retirement savings is crucial, as families may feel pressured to reduce retirement contributions to cover educational expenses [4][5] Financial Strategies - It is advised to automate college savings early through a 529 college savings plan, which offers tax advantages and can be opened before a child is born [6] - Families should complete the Free Application for Federal Student Aid (FAFSA) annually to access federal grants, work-study programs, and lower-cost loans, which can alleviate financial pressure [7][8] - Parents can consider appealing financial aid packages if their circumstances change, and should explore low-interest federal loans and Parent PLUS loans with manageable payment plans [8]