Your Guide to Financial Aid
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Applying for financial aid is the key to getting help with paying for college.
Financial aid includes free money like grants, scholarships and work-study, as well as government loans that you repay. You’re likely to end up with a combination of sources, but you should always maximize all free aid before turning to loans. If you do borrow, choose federal loans before private options.
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Financial aid: What's typical?
The type and amount of aid you receive will depend on what you’re eligible for. Here are the average amounts students receive and the percent of families using these sources, according to "How America Pays for College 2023," an annual study by Sallie Mae and market research firm Ipsos.
Source | Average amount among users | % of families using each source | |
|---|---|---|---|
Parent borrowing | Federal Parent PLUS loan | $9,134 | 11% |
Private education loans | $5,414 | 9% | |
Home equity loan or HELOC | $3,553 | 6% | |
Credit cards | $3,289 | 9% | |
Retirement account loan | $2,762 | 6% | |
Other loans | $4,304 | 6% | |
Student borrowing | Federal student loans | $7,253 | 24% |
Private student loans | $9,337 | 11% | |
Credit cards | $1,448 | 7% | |
Other loans | $4,275 | 7% | |
Paid by parents from | Parent current income | $10,566 | 58% |
College savings funds, such as a 529 plan | $7,806 | 30% | |
Other savings or investments | $5,907 | 34% | |
Retirement savings withdrawal | $3,537 | 15% | |
Paid by student from | Student current income | $2,897 | 40% |
Savings | $2,327 | 35% | |
Federal work-study | $1,821 | 20% | |
Other savings or investments | $1,923 | 21% | |
Other sources | Scholarships | $7,822 | 61% |
Grants | $5,934 | 57% |
To help you navigate the complicated financial aid process, we’ve chosen articles below that address typical questions students have. They’ll even explain the jargon.
» MORE: Is College Worth It?
Start by finding the description that best matches where you are in the financial aid journey.
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