That’s just for starters. The average price of attending a U.S. college or university has doubled over the past 25 years and is growing at a 4.04 percent annual rate. “Considering student loan interest and lost potential income, investing in a bachelor’s degree can ultimately cost upwards of $500,000,” the EDI reported.
One way to curb the up-front costs of attending college is through loans, grants, scholarships, and other forms of funding from the U.S. and state governments. The level of government student aid available to families is moderating, but plenty of financial help remains, especially through student loans.
“The state of college financing is undergoing significant change,” Andrew Izyumov, founder and CEO of 8FIGURES, an AI investment advisory firm, told NTD News. “In 2026, the One Big Beautiful Bill Act, also known as the Working Families Tax Cuts Act, will introduce new rules starting this July.”
3 Strategies to Get College Loan Funding
With political winds shifting, how can college families get help with college financing from the government? Start with the FAFSA process and go from there, experts say.College Funding Process Still Begins With FAFSA
Regardless of income, families should complete it to access state aid, institutional grants, and new programs such as Workforce Pell Grants. “Strategically, it is important to evaluate repayment options before borrowing,” Izyumov said. Under the 2026 rules, previous income-driven plans like SAVE have been discontinued by court decisions. Borrowers now need to consider the new Tiered Standard Plan or the Repayment Assistance Plan.”Federal Student Loans Are Fairly Easy to Get
For a clear path to government-sponsored financial aid, seek out federal student loans, which typically offer lower interest rates and multiple repayment options.While the U.S. Department of Education sponsors federal student loans, they’re directly available through the agency’s Direct Loan Program and can be accessed via the FAFSA Form.
- With Direct Subsidized Loans, the government pays the loan interest as long as the student recipient is enrolled at school at least half the time.
- With Direct Unsubsidized Loans, the interest clock starts ticking once the loan is accepted by the student.
- With Direct Plus Loans, the loans are disbursed directly to parents of undergraduate college students after the parents undergo a credit check and are approved for the loan.
States Offer Student Loans Too
Many states run their own college-financing programs, especially with student loans. Loan rates are competitive with those of federal and private loan providers and are usually limited to in-state students.State-sponsored loans are usually easy to find. Start with your state’s Department of Education, which usually includes a Student Loan Authority channel that operates the loan program. Non-profit student loans are available through states, too. Rhode Island, for example, offers its RISLA Program, while Kentucky offers loans through its KHEAA college loan program.
Avoid These Mistakes When Vetting Government College Funding Programs.
If heads of household aren’t careful, they can easily run into big problems with government-backed college funding programs.“One of the big mistakes we see families make is putting their children's education expenses ahead of their own ability to retire,” Steven Roge, chief investment officer at R.W. Roge & Company, an investment management firm, told NTD. “You can't take loans for your retirement expenses, but your child can certainly take student loans.”
Families often fail to realize they can help their students pay off those college loans after graduation, which gives them time to solidify their own retirement plans first.
Roge said he’s also seen families focus too much on the sticker price of colleges. “You never know which college really wants your student, and that private school, after scholarships, might come in at the same price as the public school.”
One last mistake to avoid, and it’s one that can get families in hot water with Uncle Sam. “We've heard of wealthy families hiring companies to essentially hide their assets in an effort to get their children financial aid,” Roge said. “This is illegal and immoral, so don’t do it.”