With the rising costs of college tuition, families are exploring new avenues for financing their student's higher education. In fact, according to a recent survey from College Ave, less than one third of families helping to pay for their child's college education can cover the full cost of tuition with income and savings alone. As a result, they're turning to supplemental measures.

According to the survey results, families plan to tackle the financial gap with a mix of methods, including student and parent loans. Overall, 45% of families plan to borrow in the following ways:
 

• Federal student loans (42%)
• Parent loans (19%)
• Private student loans (16%)

Of those borrowing federal or private student loans, families estimate they will borrow more than $46,000 over four years. For those using parent loans, the average is more than $68,000.

Beyond borrowing, families are also actively looking at ways to increase their income or save on college costs, such as emphasizing to students the importance of graduating on time and within four years. Some students (10%) will live at home during college to help save on costs, and close to 1 out of 5 parents (17%) who are paying for college said they will take on a second job or side hustle, while 39% reported that their child will work to help contribute to costs. 

For families who are considering student and parent loans to help cover the costs, College Ave offers the following tips on borrowing:

• Borrow smart. Try not to borrow in total more than what your child expects to make in their first year's salary. By doing so, you are likely to be able to repay your student loans within 10 years.
• Know your monthly payments. 40% of respondents did not know what their student loan monthly repayment amount would be – make sure to keep track of any federal and private loans so you have a plan on how to repay. 
• Figure out which repayment terms make sense for you. Among those who have student or parent loans, two-thirds (66%) opted for a lower monthly payment, according to the survey – but the other one-third (34%) wanted a shorter repayment term. Figure out what works best for your financial situation and future financial goals. 
• Know which party is responsible for repayment. Of those who will plan to take out loans, more than half of parents (58%) plan to help their child pay back their student loans. Make sure you have a discussion with your child on what you can contribute, what they're expected to contribute, and if you borrow, who is ultimately responsible to repay.
• Begin repaying now. Even as little as $25 a month can help reduce the total cost of the loan.
• Save when you can. Many loan servicers offer an interest-rate deduction on the loan when you set up a recurring automatic payment plan.

Ultimately, for those borrowing to help fund a college education, it's important to find a lender you can trust that offers good rates and flexible repayment terms, so be sure to thoroughly research your options.