It’s no secret that studying is expensive. It can be downright priceless for some people. But did you know that there are ways to pay for your studies even if you don’t have the money?
This article discusses five different ways to pay for college without breaking the bank. So whether you’re a high school student trying to shape your future or a parent looking to give your child the best education possible, read on for some great tips.
And if you’re looking for a helping hand, consider hiring a financial advisor who specializes in student finance. While many financial advisors are well versed in college planning topics, you may want to choose a financial advisor who has earned the Certified College Financial Consultant (CCFC) designation, especially if you have several children attending college over the next several years. to go.
We spoke to financial advisors in the Wealthtender community who share additional tips below.
A History of Tuition
Before we get into tuition payment, let’s first look at how tuition costs have changed over time. In the United States, the cost of attending college has been on the rise for quite some time. In fact, between 1985 and 2015, the average cost of tuition and tuition at a four-year public institution increased by 213%. For private four-year institutions, the increase was 129% over the same period.
With numbers like this, it’s no wonder that many people struggle to get enough money to pay for their studies. But don’t despair! There are ways to make college more affordable.
The 529 College Savings Plan
One way to pay for college is to start saving early with a 529 College Savings Plan. A 529 plan is a tax-advantaged savings account that can cover qualifying expenses at eligible colleges and universities. Family members or friends typically contribute to a 529 subscription and the money in the account becomes tax-free.
Nathan Mueller, MBA We help people of all income levels accelerate their financial prosperity!
One tip I would give to parents who want to plan to send their child to college is to put as much money as possible into a 529 plan, invest it, and do it as early as possible.
I will usually give the example of how compounding and the market will work in their favor. The example I’m giving is let’s say you are 1 year old and you put in $1000 today over 17 years with an average return of 8% turning into $3750. When they see how their money can triple in value, they hit she’s super motivated.
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Nathan Mueller, MBA | Merel Finance
🔗 Website | Asset manager profile
Scholarships and grants
Another way to pay for college is to apply for grants and grants. Scholarships are awards of financial aid that are non-refundable, while scholarships are usually need-based awards that are also non-refundable. In 2019-2020, prospective students received an average of $7,626 in scholarships and grants, accounting for approximately 25% of their tuition and fees. There are a variety of grants and grants available so it is essential to do your research and find the one you qualify for.
An excellent resource for finding scholarships and grants is College Aid Pro. College Aid Pro offers a free tool to help families discover financial aid and scholarships.
Danielle Miura, CFP® Let me help you plan for tomorrow so you can enjoy your life today.
Don’t let free money slip away! If your child is going to college this year, fill out a FAFSA form to see if they qualify for need-based grants and loans. There are plenty of online resources to apply for need-based and merit-based scholarships.
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Danielle Miura, CFP® | Spark Financials
🔗 Website | Asset manager profile
Work-study programs
Another way to pay for college is to join a work-study program. Work-study programs are federally funded and provide part-time employment for eligible students. The money earned from these programs can help cover the cost of tuition, fees, books, and other expenses.
To participate in a work-study program, you must first complete the Free Application for Federal Student Aid (FAFSA). Once your college grants you financial support, you can apply for an apprenticeship.
Payment Plans
Some colleges and universities offer payment plans that allow students to spread the cost of tuition and fees over the semester or academic year. These plans usually require a small down payment and then monthly payments for the rest of the balance. Typically, interest is charged on the unpaid balance, so it’s essential to be aware of this before signing up for any payment plan.
One way to make college more affordable is to attend a community college for the first two years and then move on to a four-year institution. Community colleges typically have lower tuition fees than four-year colleges and universities, which can be a great way to save money.
In addition, many community colleges offer programs that allow students to earn credits that are transferred to institutions for four years. Community college can save you time and money by allowing you to complete your degree in a shorter amount of time.
Jay W. Rishel, CFP®️ Providing independent, balanced and tailor-made solutions on your terms
If you’re adamant that your child is going to a four-year college/college, consider sending them to a local community school (they can live with the parents to save on room and board) for their first and second years.
Many community colleges offer university transfer programs that allow you to seamlessly earn an Associate’s degree and then transfer to a four-year college. Students can expect to save more than 40% of their projected tuition costs (2021 average tuition and tuition is $3,800 according to the College Board).
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Jay W. Rishel, CFP®️ | Overman Capital Management
🔗 Website | Asset manager profile
Use all your resources
There are several ways to pay for school, so don’t let the cost stop you from getting the education you want and deserve. If you’re willing to do your research and put in the work, you can find a way to fund your education without breaking the bank.
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About the author
Max Marvelous
A certified credit advisor and syndicate writer at MaxMyMoney, Max has coached more than 250 millennials to take the stress out of money. When Max isn’t coaching, he reads finance books, indoor cycling, or visits local pawnshops in search of Swiss watches.
This post Think you can’t afford college? Think again
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