Planning for College

A connection between thinking about college and actually planning for college can sometimes be forgotten during family discussions about college attendance. College and career paths are unique to each individual, but with research and a variety of tools, the connection can be made using an informed and customized guide along the way.

Why It Matters

Planning and saving are essential for a successful postsecondary journey.
Results of a 2024 annual survey* found that families’ out-of-pocket contributions from parent and student income and savings covered nearly half (48%) of college costs. Scholarships and grants covered 27%, while borrowing by both students and parents covered 33%. The proportion of college spending covered by parent income and savings only has decreased since a reported high of 45% three years ago. This demonstrates an increasing reliance on student income and savings, as well as borrowed funds. Those families who used parent and income savings contributed an average of $14,282 toward college costs during 2023-2024. Nearly six in 10 families indicated they created a plan to pay for all years of college before the student enrolled, which is a significant increase compared to five years ago. Most families also indicated that both student and parent together made decisions about paying for college.
College graduates improve our society.
College isn’t only about achieving a degree or certificate. When a student graduates, society benefits with a more knowledgeable and experienced employee who is more likely to volunteer and participate in community and civic life, including voting. Additionally, studies show that college graduates live a healthier lifestyle and have a longer life expectancy. College graduates tend to make higher cash donations to charities, religious organizations, and educational institutions in comparison to those without college degrees.
There are personal financial benefits.
Findings continue to show that degree holders earn more over their lifetimes than those with a high school diploma. Recent research from CollegeBoard found that in 2021, the median income of bachelor’s degree recipients was $29,000 for those working full time, which is 65% higher than those who received only a high school diploma. Other data shows the lifetime earnings of a college graduate will exceed a high school graduate’s earnings by $1.2 million.
Other things matter.
There is a great deal of variation in median earnings between different college majors. Additionally, there is a variation in lifetime earnings by gender. According to the Economic Policy Institute, women are paid an average of 22% less than men. March 12, 2024, represented the date into the calendar year that women needed to work in addition to the hours worked during 2023 to match what men were paid during all of 2023. In three decades, little to no progress has been made to close the gender gap.
There is value beyond the degree.
Findings from a 2022 study performed by Strada Education Network revealed that alumni who developed key skills during college earned $8,700 more in their first year after graduation than peers who reported lower levels of skill development through college. Skills are gained both inside and outside the classroom, with quantitative skills, critical thinking and problem-solving being associated with higher earnings. While beneficial for everyone, strong skill development does not appear to be associated with income gains for Black alumni. Consequently, Strada recommends that colleges ensure that all student populations have access to experiences, such as internships, that produce valuable skills.
Some scholarships are specific to a declared major.
With applications completed and a final college decision perhaps awaiting the anticipated financial aid offers in January or February, your student can delve further into each school’s departmental scholarship listings that pinpoint the degree program your student has declared. National free scholarship searches can be conducted as well using specialized filters. Avoid paying a fee to find scholarships, as all scholarship searches should be free.

What Your Student Can Do Now

File the FAFSA now!
The good news for families completing the 2025-2026 FAFSA for fall 2025 college attendance is that the form is available for completion now. Despite the delayed release of the streamlined 2024-2025 Free Application for Federal Student Aid (FAFSA) on December 31, 2023, 49% of families surveyed said they had completed the form by May 14, 2024. Unfortunately, the domino effect of the form’s delayed release resulted in slower processing times and delays in families receiving a financial aid offer from the schools under consideration. Consequently, 83% of those families who experienced a delay indicated they were negatively impacted and nearly half (44%) of them experienced stress while waiting to make financial aid decisions. It’s still unclear if future years’ forms will revert to an October 1 opening date.
Experience the Return on College Investment tool.
This ISL Education Lending tool has functionality where users can select both a degree type and the career field they are interested in. It then displays specific jobs that fall into that category. For example, selecting a bachelor’s degree and a career in elementary education returns multiple career options in addition to elementary teacher. Choosing a particular job will display more information about that career, its approximate starting salary and projected future openings, as well as the potential financial return on investment in multiple educational scenarios. Your student will also find out the percentage of college graduates from related majors who are currently working in the career.
Explore the Occupational Outlook Handbook.
The Bureau of Labor Statistics manages this vast Handbook, where occupations can be selected by median pay, education level, on-the-job training and job projections. Users are able to select a variety of education levels from high school diploma to doctorate or professional degree. With limited time remaining to plan high school coursework and decide on the proper educational path, there is some urgency now in defining the future career.

What Your Student Can Do Later

Enter for a chance at a $1,000 college savings deposit.
The ISL Education Lending Scholarship is a good place to start a scholarship search. Registration will open January 6, 2025 (through March 31, 2025) for Iowa high school students and their parent or guardian on the website. The scholarship awards $1,000 ISave 529 deposits, which can be used when your student is ready to pay educational expenses.
Plan to earn while learning.
If your student has held a job during high school, this early work experience has most likely formed good habits and strong time management skills. These good habits should continue into college, if your student attends. Many times, college freshmen delay getting a part-time job citing the need to acclimate to academic expectations. However, research shows that college students who work have higher overall grade point averages. Additionally, the common perception for decades has been that of a full-time residential student enrolling in a four-year college immediately after high school graduation. As circumstances and expectations changed, this norm is no longer the case. Work skills and competencies are an important commodity in today’s 21st century economy and can give your student an edge in the job market later on.

What You Can Do

Customize your plan.
Career and educational pathways have varying costs and experiences. By now, your family discussions with your senior have included college attendance — most families agree that it’s an investment in their student’s future. There’s no better time to evaluate the return on that investment by inserting a financial component into your postsecondary discussions to be confidently prepared for the costs.

*How America Pays for College 2024

Next Steps

Be sure to complete the survey questions at the end of this article to be entered into the 529 deposit giveaway!

Additional references, handouts and talking points are available in the right sidebar to use at your leisure. They may prove beneficial to reference now or after receiving future emails – we’ll leave it completely up to you. Use our emails like a recipe for a successful outcome — assemble the recommended ingredients and then follow accompanying directions to add flavor and depth.