Here are 6 ways to save money on college

For many students and families, the rising cost of higher education seems like an insurmountable challenge. Questions like “Which school is right for me?” or “Prestige.” Have more weight than expertiseThey have their share of weight, but one question consistently stands out: “How can I save as much money as possible?”

The numbers show The average total student loan debt – including private loan debt – in the United States may reach $40,681, with the average federal aid borrower paying $37,853 per person.

While the FAFSA (Free Application for Federal Student Aid) is a key tool for unlocking financial aid, loans, and study program opportunities that may help offset some of the costs of higher education, relying solely on the FAFSA is sometimes It can lead to astronomical debt and not all students. Be eligible for the amount of help you need.

good news There are other ways to reduce your education costs. Whether you want to avoid excessive student loans or supplement your existing financial aid, these practical and cost-effective options can make higher education more accessible and affordable:

College applicants face confusion and anxiety over changing admissions requirements at exam session: report

1. Community college

What's in a name? While attending top universities like Harvard, Stanford, Yale, or Columbia may be desirable, these schools and others like them can be expensive.

To parse it:

• this College Board It reports that the average annual cost of tuition and fees for a 2-year public college for the 2022-2023 school year for area students was $3,440.
• The average annual cost for a 4-year public university was $9,410 for in-state students and $23,890 for out-of-state students.
• For a private 4-year university, the cost increased to $32,410 per year in tuition and fees.

Even spending just two years at a less expensive school and transferring to a more expensive institution can cut some of your overall college costs.

“That's really big for us in California, where you spend two years at a junior college and transfer to, say, UC Santa Barbara, UCLA or Berkeley,” said Greg Kaplan, a college admissions strategist based in the Golden State. Fox News Digital.

Kaplan emphasized that many students start at community colleges and later transfer to more prestigious universities. This path allows students to earn a degree—and institutional recognition—from a top university, but at a fraction of the cost of attending that dream college all four years.

“We worked with a student who started at Arizona State University on a full scholarship for two years, and he transferred to Northwestern, which is very expensive and very prestigious. So he only had to spend two years,” he explained. did.”

2. Make your employer your partner

Some employers reimburse tuition for education programs that could potentially enhance their employees' on-the-job skills. In other words, you save money and your employer gets a more talented and efficient employee. It's a win-win for both parties.

Tuition reimbursement is often limited to $5,250 per year under Section 127 of the Internal Revenue Code (IRC), which enables companies to provide that dollar amount as a tax-free contribution. This can be claimed as a business deduction for the employer and the employees will receive a refund A tax-free benefit.

But some employers can do much more, even covering the cost of an employee's bachelor's degree entirely.

“It's not just employer matching,” Kaplan said. “If you're a young person and you're going to be an entry-level worker, you might want to think about working for a company that can partner with you… I've talked to people who are specifically looking to work for a company “They're going. Somewhere like Starbucks because they can take Arizona State classes online and they're doing it to get their degree.”

Starbucks College Success Plan (SCAP) Through Arizona State University's online programs, it offers eligible employees 100% initial tuition coverage for their first undergraduate degree.

Amazon Job Selection Program Similarly, it prepays tuition and fees up to the annual limit and Walmart's Live Better U This program gives qualified Walmart employees the opportunity to further their education with company coins.

3. Parent employee benefits

Instead of relying solely on their employer, some college applicants can take advantage of their parent's or guardian's employment benefits, usually through company scholarships.

Companies such as Chevron, PepsiCo, and Wells Fargo offer scholarship opportunities for children of qualified employees. PepsiCo Foundation Family Researchers For example, the program offers a renewable bonus of up to $5,000 to selected winners who pursue an eligible training program with this funding.

Once accepted at a university, if you meet the eligibility criteria, it's worth checking the employer's benefits and applying for a scholarship.

This amount, combined with the potential for federal and state aid, could significantly reduce the cost burden of higher education.

4. Open a 529 account

While it's best to open a 529 account when college savings begin, as a college applicant, building an account as an adult and adding small amounts can add up over time.

What is a 529 plan? A 529 account is a tax-advantaged savings account specifically designed for education expenses. Contributions to this account grow tax-free, and withdrawals are also tax-free when used for qualified educational expenses (such as tuition, supplies, room and board, etc.).

This is different from a basic savings account because the money has the potential to grow rather than stay fixed.

“If you can put away a few thousand dollars a year, it all helps,” Kaplan said.

However, a 529 only extends so far. Kaplan notes that 529 plans alone may not cover much of the cost of education, especially at private universities.

“It wasn't enough for my expensive private university,” he added.

5. Prioritize the SAT/ACT

While many colleges have maintained a test-optional policy in the post-pandemic era, high SAT or ACT scores can give students an edge when it comes to merit-based scholarships. Scoring well on standardized tests can help students unlock thousands of dollars in automatic aid and help reduce the overall cost of tuition.

“For example, if you get a 32 on the ACT or a 1400 on the SAT, you automatically qualify for a huge scholarship (roughly),” Kaplan said, referring to other colleges. $30,000 at the University of Alabama, Tuscaloosa. And universities grant similar amounts.

These scholarships are based on grades and test scores are automatic, so study for the SAT or ACT, even if it's not required. “Having all your expenses paid can potentially pay for the entire tuition.”

While taking several hours of exams can seem daunting to many high school students, hours of practice through extra courses, practice exams, and even tutoring can lead to completely different financial results in the long run.

6. Consider consortium programs

One of the lesser-known ways to save on college costs is to take advantage of state consortium programs that allow students to attend out-of-state public universities at lower tuition rates. These agreements can help families avoid the steep prices often associated with non-resident tuition.

In states like California, the Western Scholarship (WUE) is a game changer. The program allows students to apply to more than 150 colleges across the western United States — including schools across Montana, Hawaii, Wyoming, Arizona, California and Nevada — while paying lower tuition fees.

“If I have a 3.3 GPA, I can go to the University of Utah for in-state tuition plus extra fees as a California resident, so going to the University of Utah at $11,000 a year is cheaper for me than it costs. Go to any public university within the state of California, Kaplan explained.

There are various consortia in the Northeast, the Southeast, the Midwest, and the West, and these are ways that these universities seek to diversify their student body by geography. “I think a lot of people don't realize that these are consortia that exist and can bring a lot more schools into the game and it might be a good fit for you or your child.”

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