Here are 6 ways to save money on your college education

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 “Is prestige Experience carries more weightThey carry their share of weight, but one question keeps popping up: “How can I save the most money possible?”

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

While the FAFSA (Free Application for Federal Student Aid) is a key tool for unlocking grants, loans, and work-study program opportunities that may help mitigate some higher education expenses, relying solely on the FAFSA can sometimes lead to astronomical debt, and not all students qualify. To get the amount of aid they need.

The good news? There are other ways to cut dollars from your education expenses. Whether you’re trying 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:

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1. Community College

What’s in a name? While attending top-ranking universities like Harvard, Stanford, Yale, or Columbia may be the dream, these schools and others like them can be expensive.

To break it:

• the College Board Reports indicate that the average annual cost of tuition and fees for a two-year general college for the 2022-2023 school year was $3,440 for in-district students.
• The average annual cost of a 4-year public university was $9,410 for in-state students and $23,890 for out-of-state students.
• For a 4-year private university, the cost increases to $32,410 per year in tuition and fees.

Even completing just two years at a less expensive school and transferring to a more expensive institution can reduce some of your overall college expenses.

“This is really big for us in California, where you spend two years at a small college and then move on to, say, UC Santa Barbara or UCLA or Berkeley,” said Greg Kaplan, a college admissions strategist based in the Golden State. Fox News Digital.

Kaplan highlighted that many students start at community colleges and later transfer to prestigious leading universities. This path allows students to earn a degree—and institutional recognition—from a prestigious university but at a fraction of the cost of attending a four-year college at that dream college.

“We worked with a student who started at ASU for two years on a full scholarship, and then transferred to Northwestern, which is a very expensive, very prestigious university. So he only had to pay two years of tuition,” he explained.

2. Make your employer your partner

Some employers will reimburse education expenses for degree programs that can enhance their employees’ on-the-job skills. In other words, you save money and your employer will get a more talented and experienced employee. It’s a win-win.

Tuition reimbursement is often capped at $5,250 per year under Section 127 of the Internal Revenue Code (IRC), which enables companies to offer this dollar amount as tax-deductible aid. This can be written off as a trade deduction to the employer and employees get reimbursed Tax deductible interest.

But some employers can do much more than that, even covering the entire cost of an employee’s bachelor’s degree.

“It’s not just about matching employers,” Kaplan said. “If you’re young, and you’re going to be an entry-level employee, you might want to consider working for a company that can be your partner… I’ve talked to people who specifically go to work at a corporate place like Starbucks because they can take Arizona State classes online, and they do it to get on their testimonies.”

Starbucks College Achievement Plan (SCAP) Offers eligible employees 100% upfront tuition coverage for a first-time bachelor’s degree through ASU’s online programs.

Amazon Career Choice Program Likewise, tuition and fees up to the annual limit are paid in advance Walmart Live Better U The program provides eligible Walmart employees the opportunity to expand their education on the company’s dime.

3. Employee benefits for parents

Instead of relying solely on their employer, some college applicants can take advantage of their parent or guardian’s employee benefits, most commonly through company scholarships.

Companies like Chevron, PepsiCo, and Wells Fargo offer tailored scholarship opportunities for children of eligible employees. PepsiCo Foundation Family Scientists The program, for example, offers a renewable bonus of up to $5,000 to selected winners who will pursue a qualifying educational program using the funds.

After being accepted by a university, it is worth exploring employer benefits and applying for scholarships if eligibility criteria are met.

This amount, combined with access to federal and state aid, can significantly reduce the burden of higher education costs.

4. Open a 529 account

While it’s best to open a 529 account when college savings begin when the college applicant is a child, creating an account in adulthood and adding small amounts can add up over time.

What is a 529 plan? A 529 account is a tax-advantaged savings account designed specifically to cover education expenses. Contributions to this account are tax deductible, and withdrawals are also tax deductible if used for qualified educational expenses (e.g. tuition, supplies, room and board, etc.).

It differs from a basic savings account in that the money has the ability to grow rather than remain static.

“If you can save a few thousand dollars a year, everything helps, of course,” Kaplan said.

However, 529 only extends so far. Kaplan points out that 529 plans alone may not cover a significant portion of tuition costs, especially at private universities.

“It was not enough to pay for my expensive private university,” he added.

5. Prioritize the SAT/ACT

While many colleges have retained their test-optional policy in the post-pandemic era, high SAT or ACT scores can give students an advantage when it comes to merit-based scholarships. Achieving good scores on standardized tests can help students receive thousands of dollars in automatic aid, helping ease the burden of their overall tuition bill.

“For example, if you score a 32 on the ACT or a 1400 on the SAT, that will automatically qualify you for a huge scholarship of (about) $30,000 to the University of Alabama, Tuscaloosa,” Kaplan said, referring to the other colleges. Universities grant similar amounts.

“These scholarships are automatic based on test scores and grades, so studying for the SAT or ACT, even if it’s not required. Doing everything you can can pay off all your tuition.”

While taking multiple-hour tests seems daunting to many high school students, putting in hours of practice through extra coursework, practice exams, and even asking teachers for help can lead to very different financial results in the long run.

6. Consider consortium programs

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

In states like California, the Western University Exchange (WUE) program is a game-changer. This program allows students to apply to more than 150 colleges throughout the western United States – including schools throughout Montana, Hawaii, Wyoming, Arizona, California, and Nevada – while paying reduced tuition.

“If my GPA is 3.3, I can go to UT for in-state tuition plus a small additional fee as a California resident, so going to UT is cheaper for me at $11,000 a year than it costs to attend UT. “Go to any public university within the state of California,” Kaplan explained.

“There are different consortia in the Northeast, in the Southeast, in the Midwest and in the West, and these are the ways in which these universities seek to diversify their students based on geography. I think a lot of people don’t realize that these universities are consortia and they can activate a greater number of schools.” “It may end up being right for you or your child.”

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