College Ave Survey Finds Families Taking a More Collaborative Approach to Paying for College

Combining savings, student employment and federal and private student loans to finance a college degree, new survey of 1,000 parents of current college students reveals families use an "all-hands-on-deck" approach as college savings dip

WILMINGTON, Del., Aug. 4, 2026 /PRNewswire/ --  As families continue to navigate the rising cost of higher education, they're taking a more collaborative approach to paying for college. A new survey by College Ave, a leading financial services company, conducted by Barnes & Noble College Insights of 1,000 parents of current college students at four-year universities, found families are relying on a broader mix of funding sources to make college possible.

The shift comes as family savings alone are playing a smaller role in college funding. Parents who saved for college reported setting aside an average of $37,897 in 2026 down from $51,310 in 2025. As a result, fewer families who saved for college feel fully prepared to cover the total cost of a degree through savings alone (16% in 2026 vs 27% in 2025).

A More 'Collaborative Funding' Approach to Paying for College
To bridge the gap, families are pivoting away from parent-only funded sources to an "all-hands-on-deck" approach. Parent-funded financing sources declined year over year, with both 529 plans and parent income/savings dropping 20 percentage points.

The College Ave survey suggests families aren't replacing one funding source with another, but they're building a more balanced financing plan that draws from several resources:  

Cost-Saving Strategies
Beyond shifting funding sources, families are adopting cost-saving strategies as well. The number of parents reporting their child will live at home during college jumped to 26% in 2026, up from 10% in 2025 – a 16 percentage point increase. 

"Our College Ave survey suggests more families are taking a collaborative approach to funding higher education," says Dan Kennedy, Chief Marketing Officer, College Ave. "Rather than relying on a single source of funding, parents and students are combining savings, scholarships, student income and borrowing options to create a plan that works for their situation. Planning ahead and understanding all of the available resources can help families make confident decisions about paying for college."

The survey also finds the investment in higher education is worthwhile as the majority of parents (88%) believe a college degree is important for their child's future. As families begin to prepare for tuition payments this fall, College Ave offers the following tips:

• Prepare for rising costs: Estimated monthly student personal costs (transportation, entertainment, dining , etc.) rose 71% year over year to $815 in 2026, up from $476 in 2025.
• Plan for costs beyond college tuition: College tuition and fees and food and housing are just the start. According to the survey, parents pay for their child's phone plan (85%), keep them on the family health insurance policy (67%), pay for their child's auto insurance (54%) and plan to pay for their travel home during school breaks (50%).
• Apply for grants/scholarships: According to the survey, most families (65%) used grants/scholarships to help pay for college. Look for quick and easy options, like the ongoing $1,000 Scholarship Sweepstakes from College Ave.
• Borrow smart: Take time to compare lenders. Look for competitive rates and flexible repayment plans that fit your family's budget, like those offered by College Ave, an award-winning lender. Plus, consider a cosigner. For private student loans, taking out a loan with a cosigner with good credit can help you qualify for a lower interest rate, potentially saving borrowers thousands of dollars over the life of the loan.
• Use a student loan calculator: According to the survey, parents using federal and/or private student loans expected to borrow, on average, $34,337 to help pay for their child's college education. Use the College Ave student loan calculator to estimate your monthly payments and total cost of the loan to make sure it fits your budget.

College Ave offers resources and tools to help parents and students navigate the road to college. With helpful articles on paying for school to resources like student loan calculators, College Ave can help families plan and pay for college. College Ave's private student loans and parent loans can also help families cover up to 100% of the cost of attendance. For more information, visit CollegeAve.com.  

About College Ave 
College Ave started with a big vision and a simple mission - take the stress out of paying for college so students can focus on preparing for a bright future. Today, College Ave is a leading financial services company that combines best-in-class technology with deep industry expertise to deliver practical, personal solutions - giving young adults confidence for the road ahead. We keep it simple: competitive rates, straightforward products, and support you can count on from start to finish. Visit: collegeave.com.

About the Survey
The College Ave survey was conducted by Barnes & Noble College Insights^TM. The national online survey of parents of current college students at four-year universities had 1,000 respondents and was fielded in June 2026.

SOURCE College Ave