You’ve doubtless heard the stories about college graduates strapped with student loan debt. The average salaries they earn after their school years end are barely enough to make ends meet. Achieving other financial goals, such as saving for a down payment on a home or paying off car loans, seems impossible. You don’t want your child to worry about their finances during college or immediately thereafter. But you’re also aware that the cost of a four-year degree isn’t getting any lower.
Higher education is still the way to get one’s foot in the door with certain careers and employers. Finding ways to make college more affordable can put your child’s academic and future professional goals within reach. Plus, they won’t graduate with a mountain of debt they’ll have to tackle for decades to come. Here are six options to consider.
1. Work With a Consultant
The college admissions process can be complex and overwhelming. Waiting until junior and senior year to wade through the sea of choices isn’t always the best path. By then, it might be too late to stand out as a competitive applicant at top-choice schools. It could also be difficult to plan to snag scholarships and other forms of first-come, first-served financial aid.
Enlisting the help of a college admissions consultant during your kid’s first year of high school can make a huge difference. A consultant will guide your high schooler in choosing the ideal school while accounting for the financial implications. Becoming a well-rounded candidate for early admission is a strategy to get acceptance letters — and merit-based aid. Simultaneously, this strategy can focus college hopefuls’ attention on applying for money they don’t have to repay.
2. Determine the Financial Aid Options
Sometimes, your focus can home in on the initial price tags of universities on your child’s shortlist. These costs, such as tuition and room and board fees, will vary between schools. A private college far from home will undoubtedly be more expensive on paper than an in-state public university. However, financial aid availability can make some colleges more affordable than you think.
For instance, Princeton University announced in 2022 that it would cover 100% of the costs for eligible students. Those from families making $100,000 a year or less can get full rides, including allowances for textbooks. Stanford does much the same. Knowing what aid options exist at different schools can help your family strategize and look beyond the initial numbers. The type of financial aid also matters, since a package may include grants, scholarships, loans, and work-study arrangements.
3. Encourage Your Child to Take AP Classes
Taking Advanced Placement classes can help your child earn college credit while they’re in high school. Some school districts also offer fast-track programs where high schoolers can earn their diplomas and associate’s degrees. When your student completes these courses and programs, your family can save money in the long run.
Depending on the school, getting sufficiently high scores on AP exams may count toward general education credits. This means your child won’t have to pay to complete the equivalent university-level course. Say your child takes AP English during their senior year and earns a passing score of four on the AP exam. This score exempts them from having to take an introductory English composition class in college. They can move directly to higher-level courses and, if they earn enough AP credits, could even graduate early.
4. Explore Off-Campus Housing
You can cut out a significant portion of your child’s college costs by securing off-campus housing. While many universities have an on-campus living requirement for first-year students, you might be able to apply for a waiver. Say your kid decides to attend a college within commuting distance of home. They could continue to live with the family while attending school.
The dorms might be more practical for their first year if your child attends a school away from home. But when they become a sophomore, an apartment near campus might be more affordable. It depends on the area’s average rent and how many roommates your kid can tolerate. Your potential savings will also depend on meal plan options and whether a lower-cost dining plan makes sense. If the school offers choices with fewer meals for off-campus students, your child can save money by taking on some cooking duties.
5. Look at the Fine Print on Student Loans
If it’s necessary to take out student loans, be sure to scrutinize what’s in the fine print. Your child might be eligible for federal student loans, which may be subsidized. With a subsidized loan, the borrower doesn’t have to pay the interest that accrues while the student is in school. There is also a grace period in which the government pays the interest for a short time after graduation.
Subsidized loans can save money since the interest doesn’t get added to the balance while your child is earning their degree. Eligibility depends on the expected family contribution from the Free Application for Federal Student Aid (FAFSA). Federal student loans also offer deferment and forbearance options if a borrower experiences financial hardships following graduation. Private student loans may not have these protections, which can increase future financial risk.
6. Consider Transfer Degrees
Say your child wants to attend an in-state public university. However, there’s also a nearby community college with a transfer degree program. The program involves earning an associate’s degree from the community college and transferring those credits to the university. Under the transfer program, your child would finish their four-year degree at the state university.
This approach can save your family the higher costs of attendance at the public university during the first two years. You also won’t have to worry about seeking waivers for on-campus room and board requirements. Attending a community college can be a lower-cost way to explore different majors. In addition, your student may have the option to attend night school while working part-time during the day.
Achieving College Affordability
Getting a higher education isn’t always cheap. Due to increasing costs, many families and soon-to-be high school graduates even doubt whether it’s worth it. While a college degree doesn’t necessarily guarantee higher lifetime earnings, it can open doors to specific career paths. Finding ways to make it more affordable can place college within your child’s reach and increase its potential ROI.
