Whether college is just around the corner for someone in your family or it’s several years off, the biggest question (aside from which college to attend) is how to pay for it!

The average federal student loan debt in the United States was more than $37,000 according to the Education Data Initiative.

Fortunately, there are a lot of ways students (and their parents) can graduate with less debt.

Here are a few things to know about paying for college:

Savings Accounts
It’s never too early to start saving for college. In fact, the sooner you start saving for college (even if your child is a baby!), the better off they’ll be when it’s time to start paying tuition. The good news is that there are a variety of programs to help.

The most popular savings plan for college is the 529 plan. Contributions to a 529 account offer tax benefits, although the plan comes with an annual contribution limit. Another option is called a Coverdell Education Savings Account, which has slightly different rules. Be sure to talk to a financial professional to decide which is best for you.

You can also save for college in a regular mutual fund or savings account. While there may be fewer tax benefits, any savings that earns interest can help make those tuition checks less painful.

Scholarships
While your chosen school may offer you a scholarship, there are a lot of other scholarships you should apply for. Look for scholarships from your town, local nonprofit organizations and local businesses, too. A great place to start is with a high school college or career office, but there are a lot of scholarship databases you can search through, including FastWeb, the College Board or Scholarships.com.

CommonWealth One offers scholarships, too, for our members! Keep an eye out for announcements next spring.

Loans
This year, you may have heard a lot about the FAFSA, or the Free Application for Federal Student Aid. This form is the first step toward applying for grants and financial aid from any school.

Many states and colleges provide aid based on a first-come, first-served basis, so get your application in as soon as you can — even before you decide which college you’re attending. (This year, an update to the FAFSA caused delays for some students, but those should be sorted out soon!)

In addition to federal loans and grants, some students or their parents may choose to take out private loans, too. No matter what type of loans you take out, be sure you fully understand the terms, including the interest rate and repayment expectations.

In addition to scholarships, CommonWealth One offers a variety of low-interest student loans to help with tuition, room and board or books. In addition, the CommonWealth One Financial Network is standing by, ready to help you craft an investment strategy for college savings. Assistance for college costs is just a call or a click away!

Congratulations to everyone graduating this year, whether it’s from high school, middle school, elementary school or even pre-school! The time to start thinking about college tuition is now, and CommonWealth One is here to help you save.