The next stage after high school is a wide-open journey for students—and their families. There are so many things to take into consideration about that significant next step. Will it be community college or four-year university? How about a trade school? Some may consider military service or jumping straight into the workforce.
For those who plan to attend college or a trade school, there are further considerations like the school’s location, reputation, programs, sports programs, and overall culture.
But there is another aspect of higher education that can be a deciding factor: how much it will cost.
College Tuition Keeps Rising
The cost for higher education keeps outpacing inflation. Since 2000, the average annual cost to attend a public university in California has doubled to $8,500 for tuition alone. After adding in housing and other costs, students easily face $39,000 a year in total expenses.
These higher expenses lead to bigger student loans. On average, students graduate from higher education with $37,850 in debt, and when they make their payments, they pay on average $2,000 a year in interest alone.
Exploring Your Education Pathways
When deciding that first step to take after high school, it may be best to sketch out different scenarios, especially if finances are going to be a deciding factor.
Trade schools: Learning a trade can lead to solid careers that are unlikely to be as affected by the AI revolution as desk jobs. These programs take less time than a four-year degree and can be less expensive, with the average tuition for trade schools in California around $16,000 a year. While some trade schools’ annual tuition is comparable to four-year universities, the savings come from the trade school programs being two years or less.
Community Colleges: An affordable option to consider is starting at a community college and transferring to a four-year university later. Community colleges also offer AA and certificate programs that can launch students directly into professional careers. Current annual tuition at California community colleges is around $1,400. Students who qualify for the California Promise Program are eligible for no-cost education at community colleges for two years.
Public, Private, In-State, Out of State: Other considerations include the type of school and where it’s located. Public universities such as California State University and the University of California have lower tuition fees for in-state residents and much lower tuition than private universities.
Funding Options: Most families will rely on a combination of personal income and savings, financial aid, student loans, and scholarships to pay for higher education. Some may even consider home equity lines of credit to help pay expenses.
According to Sallie Mae’s How America Pays for College 2025 report, families primarily relied on income and savings to cover college costs, accounting for 48% of total spending. Scholarships and grants—funds that don’t need to be repaid—were the next largest source, covering 27% (with scholarships at 16% and grants at 11%). Borrowed funds covered 23% of spending, split evenly between student and parent borrowing (12% and 11%, respectively). The remaining 2% of college costs were covered by family or friends.
The report also shares that 74% of families from all income levels used parent income and savings to pay for higher education.
The first step for any graduating high school senior considering attending a trade school, community college or university is to fill out the Free Application for Federal Student Aid (FAFSA), regardless of income. This application is used to determine financial aid opportunities.
According to Sallie Mae, families should look at funding higher education in these steps:
- Fill out the FAFSA.
- Review financial aid packages from all accepted schools.
- Apply for grants, if eligible. California offers a grant program, Cal-Grant, for residents, and the federal government awards Pell grants.
- Apply for scholarships. There are literally thousands available each year and Sallie Mae has a robust database that links to them.
- Consider taking out student loans and be sure to closely review interest rates and repayment terms.
- Parents can consider using savings, home equity lines of credit, and other loans.
How SAFE Can Help
At SAFE, our purpose is to help members build financial freedom, and post-high school education can open doors to well-paying and rewarding careers. We offer a range of services that can assist families and students in their educational and financial journeys.
- SAFE Scholarship Program: Each year SAFE awards scholarships to high school seniors and community college students with fewer than 60 credits to help fund the next academic school year. This year, SAFE will award ten (10) $2,500 scholarships to help cover tuition at trade schools, community colleges, and four-year universities. We’re accepting applications from February 23, 2026 through April 30, 2026. You can find more information about eligibility requirements and the application here.
- Student Loans: SAFE can connect members with student loans offered by Ascent and Sallie Mae. You can find more details on our website.
- Savings: Most families will help fund higher education through income and savings. SAFE offers a variety of ways to maximize savings through money market accounts, certificates, and savings accounts.
- Other Loans: If you’re falling a bit short, there are other options to consider, such as home equity lines of credit (HELOCs) and personal loans.
- Family Banking: Those early years after high school are significant learning years for young adults as they become more independent. But they may still rely on the “bank of mom and dad” for help as they start to make their way. Through SAFE’s family banking services, parents can quickly send money to kids away at school with just a few taps in the SAFE Mobile App and Online Banking, access debit card controls, and more ways to bring peace of mind to everyone.
SAFE is here for students and their families to prepare for that next step with knowledge and expertise to build confidence. If higher education is in your family’s future, schedule a time to meet with a SAFE expert to learn all the ways we can help.
