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How much does college cost the average student from start to finish? The Education Data Initiative publishes studies about this every year, and the most updated version found some worrying statistics.
- The average cost of college is $38,270 per student, per year (this includes tuition fees, supplies, and daily living expenses).
- The average cost of college tuition has more than doubled in the 21st Century alone.
- It can cost a total of $500,000+ for a student to invest in college education when you factor in everything from student loan interest to loss of income.
Long story short, college education is expensive. It’s one of the biggest expenses and investments someone will make in their lives, and you’d like to think it’s worth it. Sadly, that’s not always the case, as many students spend a fortune on an education that doesn’t get them anywhere in life.
With that in mind, are there ways for you to make college more affordable? It’s a question you need to ask, especially if your kids are getting to the age where they’ll soon be packing for college and moving out. Here’s the thing: college will never be cheap, but you can try several tips that will bring the costs down and make it less of a monumental investment for your children.
Choose A Favorable Student Loan
Unless you’re extremely fortunate – or have been saving for your child’s education since they were born – then a student loan is unavoidable. They’re going to need to borrow money to afford higher education, but this immediately gives them an opportunity to save money. Don’t opt for the first loan that becomes available, and don’t assume that you have to go for one that a college or university recommends.
It’s much smarter to compare loans and look for ones with more favorable terms and interest rates. Some loans will have interest rates as high as 9.56%, but then you see Ascent Student Loans with options that begin as low as 3.09%. You don’t need to be a mathematician to work out that picking the loan with the lower interest rate will save a fortune.
Some student loans also include discounts for certain students, zero fees, and various repayment options. Spend a lot of time going through the options with your child until you settle on the most affordable student loan possible. It could, quite literally, save up to $20,000 on the total cost of college education – and that’s just by ensuring you find a loan with a low interest rate.
Pick An In-State Institution
Looking back at the statistics from the Education Data Initiative, you see a massive difference in the cost of college for students going to in-state vs out-of-state institutions.
- In-state students will pay around $108,584 for the total cost of their 4-year degree
- Out-of-state students will pay around $182,832 for the total cost of their 4-year degree
When you consider this, it makes so much sense to attend an in-state college instead of venturing across state borders. It simply costs far less money over the course of a 4-year degree, and the savings get even better if students are closer to home.
Your child might not like this thought, but why don’t you entertain the prospect of them staying at home throughout college? There are pros and cons to doing this, but the biggest advantage is how much money they’ll save. They don’t have to pay for any accommodation, which also means they’re not paying for any of the college services that go along with that.
Again, a lot of kids won’t want to do this, but perhaps they’ll have second thoughts when you explain how much debt they can avoid. It always comes down to the question of why they’re going to college. Are they there for the social aspect or to gain better qualifications? It should be the latter, and there needs to be a general shift in mindset away from treating college like a 4-year spring break. It’s fun at the time, but it’s a total waste of money if you’re just there for the social life.
Apply For As Much Assistance As Possible
The US Department of Education has a series of grants that your child might be eligible for. Some of these grants are for students who come from households that don’t earn a lot of money, while others have more specific requirements – such as grants for students with disabilities.
Look, it’s always worth looking through the grants and seeing if there’s something your child can apply for. In the worst-case scenario, they end up in the same position they’re in now. It can’t get worse or more expensive, but it might result in them saving thousands of dollars.
If your child isn’t eligible for any Federal grants, then you can always look for scholarships. They’re an amazing source of financial aid and most scholarships are available based on a student’s performance. So, if your child is a high performer in a certain subject (or is adept at a particular sport), then there’s a big chance they can apply for a scholarship.
Again, you can’t guarantee that they’ll receive any financial assistance through scholarships, but it’s always worth trying.
Obtain College Credits Before Attending College
Graduating with a Bachelor’s Degree normally means you need to earn 120 college credits. Students obtain these by sitting exams and going through the normal college education process.
However, you can also obtain college credits before attending college. Students can do this by taking AP courses while in high school, gaining military experience, or attending various summer programs. Some types of work experience also provide college credits, and this can result in huge savings.
Imagine your child earns enough credit to mean they only require two years of college instead of the standard four years. Remember when we spoke about the cost of in-state vs out-of-state education? Well, if your child does two years in-state, the total cost of their degree is reduced to just $34,878. A little bit of extra work beforehand goes a long way to making college more affordable.
To reiterate the main points in this post, college will never be “free” or “cheap.” It’s always going to cost tens of thousands of dollars, but you can work on reducing the overall costs. Follow some of the tips abov,e and you’ll slash thousands of dollars off your child’s college education.
