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 2025 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 23%. 74% of all families reported using parent income and savings to help pay for college, with 32% of them using college savings funds such as a 529 account. Families contributed an average of $30,837 toward college costs in academic year 2024-25, which is a 9% increase from last year’s report.
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. Research conducted by CollegeBoard in 2023 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. Last year, 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!
With 48% of families borrowing to pay for college, access to federal loans is critical as they are the most commonly used loan option. Grants are especially important for lower-income families with FAFSA completion offering access to the Federal Pell Grant. The past two FAFSA cycles have seen a delayed released of the form, but families completing the 2026-2027 FAFSA for fall 2026 college attendance were able to complete it beginning October 1.
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 again January 6, 2026 (through April 3, 2026) 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 highly valued 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 2025

Next Steps

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

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