How most Americans pay for college Share: Paying for college. Many families rely on a combination of financial resources - including out-of-pocket payments and loans - to meet their educational expenses. Parent income and savings account for 40% of college funding for the typical family. On average, parents contributed $11,147 from income and savings. Scholarships and grants account for 29% of college funding for the typical family. Total aid available in 2022-23 from grants and federal loans, tax credits and work-study was $240.7 billion. Student income and savings account for 10% of college funding for the typical family. Among college students, 31% hold a job all year, while 23% work only on school breaks and 11% work during school but not breaks. Student borrowing accounts for 11% of college funding for the typical family. There are a number of federal and private student loan options. In families who borrowed, students borrowed $11,337, on average. Parent borrowing accounts for 8% of college funding for the typical family. Federal loans are also available to parents. In families who borrowed, parents borrowed $13,507, on average. Gifts from relatives and friends account for 2% of college funding for the typical family. On average, families used $454 in gifts from others to cover college expenses. Sources: Sallie Mae, "How America Pays for College 2023," and College Board, "Trends in College Pricing and Student Aid 2023." Next steps Visit What's your game plan to fund college for planning resources and tools. Try our College Planning Calculator to see how much you should save for college. Compare college savings accounts to see which best fits your needs. Use our 529 state tax calculator to learn if your home state 529 plan offers state tax deductions. Share: MAP6857080-02022026