Want to learn how to save on college? It’s never too early to start. With tuition costs on the rise, many families are wondering how they can prepare financially for their children’s higher education.
From 529 plans to scholarships, there are several options available to help make college more affordable. But with so many choices, it can be overwhelming to know where to begin.
In this blog post, we’ll explore some tips and strategies for saving for college, so you can feel confident about your family’s financial future.
Whether your child is a newborn or a high school senior, there are steps you can take now to ensure they have the resources they need to succeed in college and beyond.
College Costs Are On The Rise
The cost to attend a 4-year in-state public college varies depending on the institution, but according to the College Board’s Trends in College Pricing report for the 2021-2022 academic year, the average tuition and fees for in-state students at public four-year colleges is $10,560 per year.
Room and board, books, out of state college, private school, and other expenses can add several thousand dollars to the total cost.
However, it’s important to note that tuition and fees vary widely by state and individual institution, so it’s important to check with the specific college for accurate cost estimates.
Let’s get into how we can save money on college with my top 10 tips:
1. Get College Credit in High School
Take college courses in high school if your school offers joint enrollment and take AP (Advanced Placement) classes to potentially get college credit in high school. You can save money on college tuition and fees and graduate college a little sooner.
Also, colleges often view students who have taken college courses in high school as more prepared and academically talented. This can give you a boost on your college application and make you more competitive for admission to top colleges and universities.
2. Explore Financial Aid Options
One of the most important steps in saving on college is applying for financial aid. Fill out the Free Application for Federal Student Aid (FAFSA) to see if you qualify for grants, work-study programs, or subsidized loans.
Don’t be discouraged if you don’t qualify for any grants. You can still apply for scholarships or choose a major that offers financial aid.
3. Start At A Community College
Consider community college for the first year or 2 and transfer to a bigger university when you complete your core requirements and finalize a major. This is a great option if you know you want a 4 year degree, but aren’t sure what you want to major in long term.
Taking several preliminary classes can help you get clear on where your interests lie. Remember, the diploma you have will be from the college you graduate from so don’t feel like you are missing out on the “college experience”.
4. Consider In-State Options
Attending an in-state college can save you tens of thousands of dollars in tuition costs. If you happen to live close to a local college and are able to stay in your childhood home, you can save a fortune on room and board too. Living expenses often are the largest expense of your college career for in-state schools.
5. Skip Private University
Attending a public college is often a better choice than a private college due to lower tuition costs, wider variety of majors, and larger student populations, providing more opportunities for socialization and networking. Public colleges also typically offer more diversity and more generous financial aid packages.
6. Apply For Scholarships to Save On College
Scholarships can help cover the cost of tuition, fees, and even living expenses, reducing the amount of student loan debt you accumulate.
There are many scholarships available for students, including academic scholarships, athletic scholarships, and scholarships based on a student’s background or interests.
Some states like Georgia offer scholarships (called HOPE) for high school students if they maintain a certain GPA. Start researching scholarship opportunities early and apply for as many as possible.
7. Be Smart About Textbook Costs
Textbooks can be expensive, but there are ways to save on these costs. Consider buying used textbooks, renting textbooks, or using e-books instead of purchasing new textbooks.
You can also sell your textbooks after the semester is over and recoup some of the cost. One of my favorite websites for buying and selling used books is bigwords.com. It’s a marketplace you can search by ISBN and sort by the best buy and sell price.
Another option is to use ratemyprofessors.com to research which professors don’t use a textbook at all. Some professors send out powerpoint slides or case studies and skip the textbooks. This is the best way to save in my opinion.
[RELATED] 10 Simple Ways to Save Money Every Day.
8. Take Advantage of Loan Forgiveness Programs to Save On College
Programs like Public Service Loan Forgiveness and Teacher Loan Forgiveness can forgive some or all of your student loan debt if you meet certain requirements. There are several types of loan forgiveness programs with specific requirements so do your research!
There are some employers now who offer repayment assistance as a benefit to attract and retain employees. Here is a link to several employers that offer student loan repayment assistance. Many companies are also offering tuition assistance while you are enrolled in school.
9. 529 Plans to Save On College
529 plans are state-sponsored savings plans that help families save for college. Contributions to a 529 plan grow tax-free and offer investment options to choose from, and funds can be used for qualified higher education expenses.
The account owner retains control of the funds and can change the beneficiary if necessary, making it a flexible option. These plans have high contribution limits, allowing families to save a significant amount of money for college over time.
By starting early and consistently contributing, families can ensure that their children have the financial resources they need to pursue higher education and achieve their goals.
10. Take Advantage of Tax Credits
There are tax credits available to help offset the cost of college, such as the American Opportunity Tax Credit and the Lifetime Learning Credit. Talk to a tax professional to determine which credits you may be eligible for.
Final Thoughts
Saving for college tuition can be a challenging task, but it doesn’t have to be a total nightmare. With a little bit of planning and effort, families can take steps to make higher education more affordable.
Whether it’s setting up a 529 plan or applying for scholarships, there are many options available to help families save for college. And while it may require some sacrifice, it’s important to remember that investing in higher education is an investment in the future.
By taking action now, families can help their children achieve their dreams without being buried in a mountain of debt. So don’t stress too much – just take it one step at a time, and you’ll be well on your way to saving for college.
How do you plan on saving for college?
