It does not take a degree in finance to recognize that college can represent one of the largest expenses a family faces.
For the 2025–26 academic year, average published tuition and fees reached approximately:
- $4,150 at public two-year in-district colleges
- $11,950 at public four-year colleges for in-state students
- $31,880 at public four-year colleges for out-of-state students
- $45,000 at private nonprofit four-year institutions[1]
Those figures only reflect tuition and required fees. Housing, meals, books, transportation, technology, insurance, and personal expenses can increase the total significantly.
At True North Wealth Management, we help families look beyond the sticker price and build a college funding strategy that supports their children without losing sight of retirement, taxes, cash flow, and other long-term goals.
Start With the Full Cost of Attendance
Many families begin by looking at tuition. That is an important number, but it does not show the full cost of attending college.
A school’s cost of attendance may include:
Tuition
Mandatory fees
Housing
Meal plans
Books and supplies
Transportation
Personal expenses
Computer or technology costs
Loan fees
Other school-specific expenses
A student who lives at home and attends a nearby public college may face a very different cost than a student who attends a private university across the country.
Families should estimate the complete annual cost before comparing schools or deciding how much they need to save.
Understand the Difference Between Sticker Price and Net Price
The published cost is not always what a family ultimately pays.
The net price is the estimated cost after grants and scholarships are subtracted. Unlike student loans, grants and scholarships generally do not need to be repaid.
Every college that participates in federal student aid programs must provide a net price calculator on its website. This tool can give families an early estimate based on household income, assets, family information, and the student’s circumstances.[2]
The net price often provides a more useful comparison than tuition alone.
A private school with a high published price may offer substantial institutional aid. A lower-cost public school may offer less aid. Families should compare the estimated net cost of each option rather than assuming the lowest sticker price will always be the least expensive.
Estimate the Number of Years Your Student May Attend
Many families automatically multiply one year’s cost by four. That may not provide a realistic estimate.
Some students take longer than four years to graduate. Others complete credits early through Advanced Placement courses, dual enrollment, summer classes, or community college transfer programs.
Consider:
The school’s typical graduation timeline
Whether your child may change majors
The availability of required classes
Transfer-credit policies
Internship or study-abroad plans
Whether the degree requires more than four years
The likelihood of graduate or professional school
An extra semester or year can add tuition, housing, and lost earning time.
Account for Future Cost Increases
If your child is still several years away from college, today’s prices will not reflect the amount your family may eventually pay.
College costs can increase over time. Rather than relying on one fixed estimate, consider creating a range based on different inflation assumptions.
For example, calculate:
A lower-cost scenario
A moderate-cost scenario
A higher-cost scenario
Planning with a range can help you prepare for uncertainty without pretending you can predict the exact price years in advance.
Decide How Much the Family Plans to Pay
Parents do not necessarily need to fund 100% of college costs.
Before applications begin, discuss what the family can realistically contribute. Your funding goal might cover:
All education expenses
Tuition only
The cost of an in-state public university
A fixed dollar amount
A percentage of total costs
Expenses not covered by grants and scholarships
Clear expectations can help students build a school list that fits both academic and financial goals.
This conversation should happen before acceptance letters arrive and emotions take over.
Review Available College Funding Sources
Most families use several resources to pay for college.
Potential sources include:
529 education savings plans
Custodial accounts
Parent savings
Current household income
Student earnings
Scholarships
Federal and institutional grants
Work-study
Federal student loans
Parent loans
Employer education benefits
Education tax credits, when eligible
Gifts from grandparents or other relatives
Each source comes with different tax, financial aid, ownership, and control considerations.
A coordinated strategy can help families decide which resources to use first and which to preserve for later years.
Complete the FAFSA
Families should complete the Free Application for Federal Student Aid, commonly called the FAFSA, even if they assume they will not qualify for need-based assistance.
Schools and other organizations may use FAFSA information when awarding:
Federal grants
Federal student loans
Work-study
State aid
Institutional grants
Certain scholarships
Financial aid rules, deadlines, and application requirements can change. Submit the form accurately and as early as practical once it becomes available for the applicable school year.
Compare Financial Aid Offers Carefully
A large financial aid offer does not always mean a school is affordable.
Aid offers may combine:
Grants
Scholarships
Work-study
Subsidized student loans
Unsubsidized student loans
Parent PLUS loans
Private financing suggestions
Only grants and scholarships directly reduce the cost without creating repayment obligations. Work-study requires the student to earn the money, and loans must generally be repaid with interest.
For each school, calculate:
Total cost of attendance – grants and scholarships = estimated net cost
Then identify how the family would cover the remaining amount.
The student’s official financial aid offer becomes the most reliable source for comparing actual costs once the school has provided it.[3]
Include Travel and Alaska-Specific Expenses
For Alaska families, transportation can add significantly to college costs.
A student attending school outside Alaska may need funds for:
Airfare during holidays and summer breaks
Baggage and shipping
Airport transportation
Temporary housing
Winter or climate-specific clothing
Storage between school years
Emergency travel home
These costs may not appear prominently in the college’s published tuition figure, but they belong in the family’s estimate.
An Alaska-based school may lower travel and housing expenses, while participation in regional tuition programs may create additional options. Families should evaluate the full cost rather than tuition alone.
Consider Community College and Transfer Pathways
Students may reduce costs by completing part of their education at a community college and transferring to a four-year institution.
This strategy can work well, but confirm:
Which credits will transfer
Whether the credits apply to the intended major
Minimum grade requirements
Transfer agreements
Scholarship eligibility after transfer
Whether transferring could extend graduation time
A lower price per credit does not save money if the student must repeat classes or attend longer than planned.
Discuss Borrowing Limits Before Choosing a School
Student loans can help bridge a reasonable funding gap, but borrowing should support a realistic career plan.
Before taking loans, discuss:
The total amount borrowed over all years
Expected monthly payments
Potential starting salary
Employment prospects in the chosen field
Federal versus private loan terms
Interest accumulation
Who will legally owe the debt
Whether parents will borrow or cosign
How repayment may affect future goals
A student’s dream school may not be the best financial choice if the required debt would limit housing, career flexibility, retirement saving, or other goals for decades.
Protect Retirement While Funding College
Parents often feel pressure to sacrifice retirement savings for their children’s education.
That decision deserves careful consideration.
Students may have access to scholarships, grants, work, lower-cost schools, and loans. Parents cannot borrow in the same way to fund retirement.
Reducing retirement contributions, withdrawing retirement assets, or taking on large parent loans may affect:
Your retirement date
Future investment growth
Current and future taxes
Healthcare planning
Cash flow
Financial independence
Your ability to help children later
A strong plan balances education support with the parents’ need for long-term security.
Review the Plan Every Year
College funding assumptions change.
Your child may choose a different school, receive more or less financial aid, change majors, move off campus, earn scholarships, or take longer to graduate. Household income and assets may also change.
Review the plan annually and update:
Projected college costs
Savings balances
Financial aid estimates
Scholarship opportunities
Cash-flow capacity
Borrowing needs
Retirement contributions
Tax considerations
Regular reviews can help families adjust before a small funding gap becomes a major problem.
Build a College Plan Around Your Family
The cost of college depends on the student, the school, the degree path, the financial aid package, and the family’s available resources.
At True North Wealth Management, we help families evaluate college funding alongside:
Retirement planning
Investment management
529 plan strategies
Tax-aware planning
Cash flow
Estate planning
Gifting strategies
Student and parent borrowing decisions
If college is approaching—or you want to begin saving while your child is young—schedule a conversation with True North Wealth Management.
A thoughtful review can help you estimate future costs, understand your funding options, and create a strategy that supports your child’s education without sacrificing your own financial future.
Important Disclosures:
This material is for informational purposes only and is not intended as tax, legal, accounting, financial aid, education, or individualized investment advice. College costs, financial aid rules, tax benefits, scholarship availability, and student loan terms may change. Investments in a 529 plan involve risk, including possible loss of principal. Please consult qualified tax, legal, financial aid, and financial professionals regarding your individual circumstances.
1. CollegeBoard.org, November 2023
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite and customized by True North Wealth Management LLC to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.