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When it comes to college admissions, two standardized tests stand out: the ACT and the SAT. Both are designed to assess a student’s readiness for higher education, but they have distinct differences in format, content, and scoring.

Keep reading to learn more about how these tests compare, which one you should take, and how colleges feel about these two exams.

Purpose, Structure, and Cost

The SAT and ACT are two exams that serve the same purpose. Colleges utilize both exams to determine admission and award merit-based scholarships. Both tests are similar in length and structure, with the SAT taking 2 hours and 14 minutes, and the ACT taking 2 hours, 55 minutes (without essay), and 3 hours, 40 minutes (with essay) to complete.

For the 2025-26 school year, it costs $68 to register for the SAT. There are additional charges if you change test centers ($34) or you register late ($38). Your first four score reports are free if you order them within nine days after the test date. After that, any additional reports you want to send to multiple colleges cost $15 each.

The cost to register for the ACT for the 2025-26 school year is $65 with no writing ($25) or science ($4). There are additional charges if you change test centers ($44) or you register late ($38). Your registration fee covers reports for you, your high school, and up to four colleges (if you provide the codes when you register). Additional score reports are $19.

💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

The Subject Matter

These two exams cover similar subject matter and include an optional essay portion, although there are some key differences worth noting when it comes to preparing to take these exams. The main difference between the ACT and SAT subject matter is that the ACT has a science section, whereas the SAT does not.

ACT Subject Matter

The ACT includes four main sections: English, Math, Reading, and Science, with an optional Writing section. The English section focuses on grammar, usage, and rhetorical skills, while the Math section covers a broader range of topics, including trigonometry and advanced algebra. The Reading section tests comprehension and analysis of passages, and the Science section evaluates a student’s ability to interpret, analyze, and evaluate scientific information and data.

SAT Subject Matter

The SAT is structured into two main sections: Evidence-Based Reading and Writing, and Math, with an optional Essay section. The Evidence-Based Reading and Writing section is divided into Reading and Writing & Language tests, focusing on critical reading, vocabulary, and writing skills. The Math section is split into two parts: one that allows the use of a calculator and one that does not, and it emphasizes problem-solving and data analysis, with a greater focus on algebra and less on advanced math topics like trigonometry.

How Each Exam Is Scored

Both the SAT and ACT have unique scoring systems. Here’s a bit of information on each.

How the SAT Is Scored

The SAT is scored on a scale of 400 to 1600. Breaking down the scoring process a bit further, the SAT has not just a “total score,” but “section scores.” Each of the main sections, reading/writing and math, may be scored up to 800 points. These scores are then combined for the total.

Last but not least, students will receive subscores, evaluating their performance of certain or subject areas. These scores are included as a part of the total score, but this breakdown can be insightful for students looking to retake the test and improve their skill set.

Recommended: How to Help Your Child with SAT Practice

How the ACT Is Scored

The ACT is scored on a scale of 1 to 36. The ACT scoring system begins by taking into account how many questions a student answers correctly. The “raw scores,” which represent the number of correct answers on each test, are then converted to “scale scores.” Each subject section — English, Math, Reading, and Science—receives a scale score.

The “composite score,” which ranges from 1 to 36, is an average of each subject test, rounded to the nearest whole number. The scoring process is completed after identifying the percentage of correctly answered questions.

Recommended: Ultimate College Application Checklist

Do Colleges Prefer the ACT or SAT?

Both the ACT and SAT are widely accepted by U.S. colleges and schools generally don’t have a preference for one over the other. Many people believe that the SAT is more popular, especially with elite colleges, but that is a higher education urban legend.

There may, however, be some regional preferences between ACT vs SAT. College Raptor analyzed the numbers of students who applied to colleges with ACT or SAT scores (numbers that colleges and universities report to the government) and found that, while many states were split down the middle, a few lean more in one direction towards ACT or SAT. For example, Wisconsin leans heavily towards an ACT preference — there, 95.27% of applicants submitted ACT scores.

Knowing Which Test to Take

While some students opt to take both the SAT or ACT, some choose just one in order to focus on preparing for the test they believe they are more likely to score higher on. Neither test is generally easier than the other, but some students may find their different structures suit their needs better.

The SAT focuses more on critical reading, writing, and problem-solving, with a greater emphasis on algebra and data analysis in its Math section. The ACT, on the other hand, includes a Science section and covers a broader range of math topics, including trigonometry. If you excel in science and math, the ACT might be a better fit. If you are strong in reading and writing, the SAT could be more advantageous.

Taking a full-length practice test of each exam can give you a better idea of which test you’ll score higher on. Once you’ve determined which is a better fit, you can spend their time and resources preparing for just one test instead of two. If you feel comfortable preparing for and taking both exams, doing so can be beneficial as you will have two scores to choose between to send to colleges.


💡 Quick Tip: Federal student loans carry an origination or processing fee (1.057% for Direct Subsidized and Unsubsidized loans first disbursed from Oct. 1, 2020, through Oct. 1, 2026). The fee is subtracted from your loan amount, which is why the amount disbursed is less than the amount you borrowed. That said, some private student loan lenders don’t charge an origination fee.

Paying for College

The options don’t stop after you complete the test (or tests) of your choice. Once you use your solid scores to get into the college of your dreams, you and your family may be faced with some other big decisions, especially when it comes to paying for college.

Luckily, there are options — including grants, scholarships, and federal student loans — that can help offset the out-of-pocket costs. If you’ve exhausted those avenues and still have a funding gap, you may want to explore private student loans and or parent loans.

Private student loans are available through banks, credit unions, and online lenders. Unlike federal loans, applying for a private loan requires a credit check. Students who have solid financials (or a cosigner who does) typically qualify for the best rates and terms. Just keep in mind that private loans don’t come with the same protections, like government-sponsored forgiveness programs, that you get with federal loans.

The Takeaway

In the ongoing debate between the ACT and SAT, it’s clear that most colleges do not have a strong preference for one over the other. Both tests are designed to measure college readiness and are widely accepted. Ultimately, the choice should be based on which test aligns better with your strengths and testing style.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

Do most colleges prefer the SAT or ACT?

Most colleges do not have a strong preference for one test over the other. They accept both and consider them equally in the admissions process.

How can students decide which test to take?

Students should consider their strengths and testing style. If you excel in science and advanced math, the ACT might be a better fit. If you are strong in reading and writing, the SAT might suit you more. Taking practice tests for both can also help determine which one you perform better on.

What are the main differences between the ACT and SAT?

The ACT includes a science section and covers more advanced math topics, while the SAT focuses more on critical reading and writing. The ACT is generally more straightforward, while the SAT can be more complex and requires strong reasoning skills.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

It doesn’t matter whether you’re the student or the parents wading through college application and tuition figures: Going to college is a huge life decision, almost always synonymous with huge sticker shock.

According to U.S. News & World Report, the average cost for tuition and fees to attend a private college for the 2022-2023 academic year was $39,723. The price tag for a public college was $10,423 as an in-state student and $22,953 as an out-of-state student. Tuition, it should be noted, does not include room and board and other living expenses.

Fortunately, there are financial aid systems in place for college students to help offset the high costs. Here’s what you need to know about college financial aid, including how it works, the different types of financial aid, and how to apply.

What Is Financial Aid?

Broadly speaking, the term “financial aid” refers to any funding that doesn’t come from the student’s (or their family’s) savings. It can be heartening to know that schools typically don’t expect enrollees to cover college costs from their savings and income alone.

Financial aid is available from a variety of sources, including federal and state agencies, colleges, high schools, community organizations, foundations, and corporations. It can be awarded in the form of loans, grants, scholarships, and work-study programs. The type of aid determines whether it will have to be repaid or not: federal grants don’t need to be repaid, for example, but a loan will.

You can generally use financial aid to cover a range of college-related costs, including tuition and fees, room and board, books and supplies, and transportation.

💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.

Federal Student Aid

To apply for federal financial aid, you simply need to fill out the Free Application for Federal Student Aid (FAFSA®). This form is required in order to be considered for federal aid as well as for most college and state assistance. (Some private colleges use a supplemental form called the College Scholarship Service Profile, or CSS, which is more detailed and can be more time-consuming to complete.)

The Federal Student Aid office advises filling out the FAFSA as soon as possible after it becomes available, even if you’re unsure whether or not you will qualify for any financial aid.

Some states award aid on a first come basis, so submitting a FAFSA application early could be helpful. A FAFSA application is also a prerequisite to be considered for federal grants like the Pell Grant, which is “usually awarded only to undergraduate students who display exceptional financial need and have not earned a bachelor’s, graduate, or professional degree.”

The FAFSA is also required to be considered for the federal work-study program, which provides part-time jobs to help pay for education expenses. Such programs usually encourage community service work and work related to the expected course of study.

State-Based Student Aid

Depending on where you live or choose to go to school, you’ll likely also have access to aid at the state level. Virtually every state education agency has at least one grant or scholarship available to residents, and many states have a long list of available student aid programs.

While eligibility for state-based financial aid is usually restricted to in-state residents, that’s not always the case. SoFi has a state-by-state breakdown of grants and scholarships available for college students.

Merit- vs Need-Based Financial Aid

Financial aid can generally be broken down into two types — need-based aid and merit-based aid.

Some federal aid is need-based — like the Pell Grant and Direct Subsidized Loans (more on this loan type below) — meaning eligibility is based solely on the assets and income of the prospective student and their family. Factors like test scores or athletic ability, for example, have no bearing here.

The opposite is true for merit-based scholarships, which are based on a student’s talents and interests, whether they are artistic, academic, or athletic. A student’s financial situation is not considered here.

To learn about both merit- and need-based aid programs that may be a good fit for you, it’s a good idea to talk to your high school guidance counselor, as well as the financial aid office at your selected school.

You’ll be automatically considered for many need-based aid programs just by filling out the FAFSA. However, you may also want to search for private scholarships (which can be merit- or need-based) online. While these awards tend to be small, you may be able to combine several scholarships, which could make a dent in your expenses.

Recommended: SoFi’s Scholarship Search Tool

Federal Student Loans

Most students’ federal financial aid packages include federal student loans, which are awarded based on financial need and the cost of attending college. These include Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.

The advantages of federal student loans include low, fixed interest rates, no credit checks required, unique borrower protections (like forbearance and deferment), and repayment plans based on income and/or your commitment to eligible public service work post-graduation.

With Direct Subsidized Loans, the government pays the interest while the student is attending school at least half-time. These loans are awarded based on financial need.

Direct Unsubsidized Loans, on the other hand, are awarded regardless of financial need. However, interest starts accruing on these loans from the moment you get them, though you can defer making any payments until six months after you graduate.

Direct PLUS Loans are also unsubsidized, and are awarded to either eligible graduate students or parents of undergraduate students. They require a credit check to ensure there’s no “adverse credit history.” In short, that means they can be more difficult to qualify for as compared to Direct Unsubsidized Loans.

Note that there will be no new Direct PLUS loans for graduate and professional students after July 1, 2026. However, students who already received a Grad PLUS loan before that date can continue borrowing under current terms through the 2028-29 academic year.

💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than Federal Parent PLUS Loans. Federal PLUS Loans also come with an origination fee.

Private Student Loans

If your federal student aid package and other forms of funding don’t quite cover your cost of attending college, there are also private student loans to consider.

Private student loans are offered by banks, credit unions, and online lenders. The interest rates may be fixed or variable, and are set by the lender. Unlike federal student loans, private student loans require a credit check. Students who have excellent credit (or who have cosigners who do) tend to qualify for the lowest rates.

An advantage of private student loans is that you may be able to borrow up to 100% of the cost of college tuition and living expenses. However, private loans don’t always offer the same protections, such as income-driven repayment plans, that come with federal loans.

The Takeaway

Navigating the world of college financial aid can seem daunting, but understanding the process is crucial for making higher education more accessible and affordable.

By familiarizing yourself with the different types of aid available, such as grants, scholarships, loans, and work-study programs, you can create a comprehensive plan to finance your education.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

What is the FAFSA, and why is it important for college financial aid?

The FAFSA (Free Application for Federal Student Aid) is a form that students and their families must complete to be eligible for federal financial aid, including grants, loans, and work-study programs. It is crucial because it helps determine the amount of aid a student can receive.

What are the main types of financial aid available for college students?

The main types of financial aid include grants, scholarships, loans, and work-study programs. Each type serves a different purpose and has its own eligibility criteria and application process.

What are some tips for maximizing financial aid opportunities?

To maximize financial aid opportunities, students should complete the FAFSA early, research and apply for additional scholarships and grants, consider work-study programs, and stay informed about their college’s financial aid policies and deadlines. Additionally, maintaining good academic performance can open up more merit-based aid options.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Many Americans use the words college and university interchangeably, but there are actually some key differences between colleges and universities.

Generally, schools that are called colleges tend to be smaller and focused on two- or four-year degrees. Those with the word university in their name are often larger institutions that offer a variety of both undergraduate and graduate degree programs.

If you’re applying to college or graduate school, it can be helpful to understand the similarities and differences between colleges and universities. Here are key things to know.

Comparing College vs University

Colleges and universities are both higher educational institutions that people attend after finishing high school, but there are some major distinctions between the two. Here’s a helpful overview explaining the difference between college vs. university.

Community Colleges

When it comes to understanding colleges, there are a few different types to keep in mind. Community colleges and career colleges are usually smaller than traditional colleges, often offering two-year degrees, like an Associate’s Degree or pre-professional certificate. Many community colleges also host online degrees and, in some cases, do not expect students to live on campus.

Some students attend a community college with the intention of then transferring to a four-year college or university to get their undergraduate degree. Others opt for community colleges precisely because they want to earn a pre-professional or technical certificate and then work right away.

Four-Year Colleges

Another major type of college is a four-year institution. These schools offer undergraduate degrees, typically a Bachelor of Arts (BA) and Bachelor of Sciences (BS). Sometimes, students choose to go to community college first because it is less expensive. But, some students will choose to go directly to a four-year college after high school.

Generally, four-year colleges are smaller schools that tend to focus on offering undergraduate degrees and a broad-based curriculum, including the liberal arts. Frequently, four-year colleges expect students to reside on campus during some or all of their studies.

Recommended: Ultimate College Application Checklist

Understanding Universities

Universities also offer undergraduate degrees, but they differ from colleges in some significant ways. Usually, a university is a larger institution, frequently offering graduate degrees as well.

In addition, most universities tend to be research-focused, hosting on-campus laboratories and hiring faculty recognized for their publications or academic findings. Universities can be either public or private.

One extra (and confusing) snarl here: At some institutions, the word “college” is also used to describe certain departments or divisions of the school. For instance, a university might have a College of Arts and Sciences or College of Engineering.

Pros and Cons of a College

When debating college vs. university, one potential advantage of choosing a college over a university is its smaller size. Not all colleges are smaller than universities, but it is a common difference.

In some cases, going to a smaller school can mean getting more one-on-one time with professors. If you’re hoping to maintain a relationship with professors after graduation (or intending to apply to graduate school), more interaction with professors can be an added benefit. Having smaller class sizes could also make it easier to get to know classmates.

Some colleges, especially liberal arts colleges, tend to focus more on general education (rather than offering pre-professional or research-based programs). If you have a particular interest or career you want to focus on as soon as you start college, it can be a good idea to make sure any colleges you’re applying to offer that field of study.

In some cases, a college might also have more limitations in regards to class availability, as some limit the number of students allowed per class. This isn’t the case for every college, so it can be useful to research each specific school’s policies carefully.

Depending on your chosen major, some classes may not be offered every semester at smaller colleges, which could mean you’ll need to engage in more long-term planning to ensure you’re able to take all required classes before graduating.

Pros and Cons of a University

Universities are, generally, larger and therefore boast more opportunities when it comes to availability of classes, diversity of majors, and extracurricular activities. Whether you’re interested in a niche major or looking for a wide variety of social clubs, you may be more likely to find it at a larger university.

Both public and private universities offer four-year degrees. There’s typically a difference in price — public universities are typically more affordable for in-state residents compared to private universities and colleges.

Universities might also offer both undergraduate and graduate degrees. Because universities can offer graduate degrees, there’s usually a stronger commitment to research at these schools, including master’s or doctoral degree programs.

If you’re looking to get an undergraduate and graduate degree at the same school, a university may be a good choice, since it might be easier to get accepted to the graduate program if you’ve already earned a degree at that school.

The cons of going to a university can also be tied to size. A larger university might not offer as many opportunities to secure one-on-one time with professors that you might find at a college. There may be more large lecture classes offered at a university than at smaller colleges, too.

Large class sizes can also make it harder for students to get to know their fellow classmates.

Recommended: States That Offer Free College Tuition Programs

Why Choose One Over the Other?

Whether it’s better to go to a college or a university will depend on each student’s specific situation and academic or career goals. Identifying a specific course of study (or professional trajectory) up front might make it easier to choose which schools to apply to and, ultimately, which one to attend.

If you’re interested in getting research experience and/or you’re looking for a variety of extracurricular activities, you might be happier with a university. If, on the other hand, you’re keen on getting a liberal arts education, value smaller classes, and/or would enjoy more opportunity to interact with your professors and classmates, you might feel more at home at a college.

Neither a college or university is, by definition, a better choice. It’s okay to apply to both colleges and universities, as long as each school meets your specific needs.

Funding College or University

Cost can also be a major factor when deciding where you will ultimately go to school. It can be a good idea to apply to a mix of schools (including both colleges and universities), then consider the cost of attendance and compare financial aid packages offered by each one.

Attending one of your state’s public universities is often more affordable than going to a private college or university. However, that may not always be the case, depending on what scholarships and grants a college is able to offer.

A smart first step to figuring out how you’ll pay for a college or university is to fill out the Free Application for Federal Student Aid (FAFSA). This will let you know if you are eligible for any federal aid, which may include grants, scholarships, work-study, and federal student loans (which can be subsidized or unsubsidized). Grants and scholarships typically don’t have to be repaid, but loans generally do. There are different types of student loans, so doing your research and making sure you understand what is available is a key part of the process.

To fill in any gaps in funding, you may also want to explore private student loans. Private student loans aren’t based on need, and are available through banks, credit unions, and online lenders. To apply for a private student loan, you generally fill out a loan application either alone or with a cosigner. Rates vary depending on the lender but borrowers with excellent credit typically qualify for the lowest rates.

Just keep in mind that private student loans may not offer borrower protections, such as deferment and income-driven repayment plans, that come with federal student loans.

The Takeaway

Typically, colleges are smaller, two- or four-year institutions while universities are larger schools, offering undergraduate and graduate degrees. There’s no right or wrong choice between the two. It’s a personal choice depending on a student’s needs and preferences for their higher education. Also, the price may come into play, with one option being more affordable than the other.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

What makes a university different from a college?

Typically, universities are larger than colleges and they offer graduate degrees as well as undergraduate ones.

Is it better to go to a college or a university?

Deciding between a college and a university is a matter of personal choice and circumstances. Some students may want a research university and the exposure that can offer them to working with a professor; others may opt for an Associate’s degree at a college because that makes sense financially.

Which is cheaper, a college or university?

Prices can vary greatly when considering colleges and universities, so there’s no definitive answer about which is cheaper. In general, however, community colleges are a budget-friendly option.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOISL-Q325-102

College planning is an exciting time for you and your child. But, as exciting as it may be, there is a lot of preparation involved.

So, whether your child is entering into their freshman year of high school or a few months away from graduation, there is no better time to start planning for college than the present.

From figuring out your financials to helping your child prepare for admission exams, this college planning checklist for parents can help streamline your child’s transition from high school to college.

Starting a Savings Plan

According to the Education Data Initiative, the average cost of college in the U.S. is $38,270 per year, including books, supplies, and daily living expenses. Indeed, the cost of going to college has more than doubled over the past two decades.

With this in mind, it’s wise to start saving for college. But, while many parents may have the best intention of helping their children pay for their college expenses, they often fail to prepare.

So, even if your child is just now entering high school, you can still start saving and preparing for college costs. It’s never too late to start setting money aside for your children’s education.

💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

Paying Close Attention to Grades and Curriculum

Since grades and curriculum are crucial to getting an acceptance letter, you may want to keep close tabs on your student’s grades and study habits. From helping with studying to supporting homework expectations, getting involved with your kid’s coursework may help them perform better in school.

You may also want to encourage them to take Advanced Placement courses. Since AP courses allow you to tackle college-level material while your child is still in high school, your student may get ahead by taking some.

Recommended: ACT vs. SAT: Which Do Colleges Prefer?

Encouraging Involvement with the Community

While the top factors in admission decisions tend to be academics, the next most important factors typically include a student’s demonstrated interest and extracurricular activities.

Encouraging your child to get involved in the community could potentially help them write a solid college application, and even help them decide what they want to do with the rest of their lives.

For example, if your child loves to run, they may want to try out for the track team to round out their classes or volunteer as a track coach for a youth team. Or, if they prefer journalism instead of sports, they may want to try writing for the school newspaper.

Not only will getting involved help with their college application, but it will also help sharpen their skills. So, don’t be afraid to encourage them to explore their passions and get involved with the school and/or local community. You might even want to get involved with them.

Planning for the SAT and ACT

Another key component to receiving acceptance letters from colleges and universities is having acceptable SAT and ACT scores. Some schools require the Scholastic Aptitude Test, known as the SAT, while others may require the American College Testing, known as the ACT. Some schools will accept either one, but it’s a good idea to check the preference of the schools your child will apply to.

To help your child prepare, you can encourage them to sign up for an after-school prep class or practice at home by using online resources such as Khan Academy’s free SAT practice program in partnership with The College Board.

Recommended: How to Help Your Child with SAT Practice

Researching Schools

One of the most important components of college planning for your child is helping them decide which university or college is the right fit. Fortunately, there are plenty of options available to help you find a school that will fit your child’s education and experience needs.

To get started in the decision-making process, you may first want to help your child decide what degree they would like to achieve. If they know they want to be an engineer, for example, you may want to focus on schools with good engineering programs.

It’s also wise to consider factors such as location and the type of college experience your child wants to have. For example, if they want to go to a school close to home and commute to save money, that desire will limit the search parameters.

Remember, while you may be the voice of reason, the ultimate decision is up to your child — the student. Simply help them evaluate all of the key factors in making an informed decision.

Scheduling College Visits

College visits can be a big help when it comes to finding the right fit. With this in mind, you may want to help your child plan a college visit well in advance of making a decision. The College Board recommends scheduling your visits during your child’s junior year in the spring if you have already researched schools.

For seniors, it may be best to schedule visits in the fall through the winter months. This may help seniors narrow down their options.

Since you want your child to get a feel of the college experience, you’ll want to make sure classes are in session. Therefore, it’s also wise to avoid visits during holidays or break weeks.


💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, Federal Direct Subsidized and Unsubsidized Loans, Direct PLUS Loans, and more.

Investigating Financial Aid Options

Even if you have saved for your child’s education, you may want or need to explore other funding options, which could include your child taking on some of the cost.

Completing a Free Application for Federal Student Aid (FAFSA®) is one of the first recommended steps to applying for student financial aid, whether that is in the form of grants, scholarships, federal loans, or work-study.

It’s recommended to complete the form as soon as possible because there are differing deadlines to be aware of, including for individual colleges as well as federal and state deadlines. The sooner you submit your FAFSA, generally, the better your chances of receiving aid will be.

Colleges and universities will use the information reported on the FAFSA to determine how much aid a student is eligible for. Even if your child has not applied to a school yet, they can list that school on the FAFSA, so encourage them to include their dream school as well as those they consider safety schools.

Comparing each financial aid award letter can help you and your child determine the financial obligation of attending each school. It is recommended to exhaust all federal aid options before considering a private loan, but if you are looking for supplemental funding for your child’s education, private student loans may be an option.

The Takeaway

College planning is a significant journey that requires careful preparation and support. By starting early, managing finances wisely, visiting campuses, organizing important documents, and providing emotional support, parents can help their children navigate this exciting transition with confidence and ease.

Parents and students can pay for college with cash savings, federal financial aid (including grants, scholarships, and student loans), and private student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

When should parents start planning for their child’s college journey?

Parents should start planning early, ideally during the child’s high school years, to ensure they are well-prepared for the entire college process, from applications to move-in day.

What are some important financial steps parents should take when planning for college?

Parents should create a budget, explore financial aid options like scholarships, grants, and student loans, and understand the costs associated with college to manage expenses effectively.

How can parents support their child’s emotional transition to college?

Parents can support their child’s emotional transition by providing encouragement, being a listening ear, and helping them feel confident and excited about their new college life.

About the author

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.