11 Ways Families Can Save on College Tuition in 2024
The cost of U.S. higher education has increased so steeply that many Americans can’t cover costs without accruing mountains of student loan debt. According to the Education Data Initiative, the outstanding federal loan balance is $1.602 trillion and accounts for 92.8% of all student loan debt; 43.2 million borrowers have federal student loan debt, with the average federal student loan debt balance hovering at $37,088.
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Paying down student loan debt is no easy feat. Even some retirees are still mired in it. It all prompts the question, “What are ways to save on college tuition in 2024?”
Here are some expert tips that can potentially save you and your family a fortune.
Consider a 529 Plan
If you’re a caregiver responsible for your child’s education (or wants to be), your first plan of attack should be to consider a 529 plan.
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“[A 529 plan] includes tax-free growth and distribution for qualified educational costs, including tuition, room and board and even a laptop if needed for schooling,” said Daniel Masuda Lehrman of Masuda Lehrman Wealth. “529 plans can also be used to pay off student loans up to $10,000 per beneficiary.”
Know the Whole Cost of College Before You Apply
In the opinion of Nancy Goodman, founder and executive director at College Money Matters, the big problem is that people apply to colleges and don’t really know the costs when they apply.
“Except for healthcare, this is one of the few situations where the actual price to attend is unknown and varies for every individual attending even the same college,” said Goodman.
Know the costs of every institution you’re considering before applying so you’re not tempted by an education you can’t afford.
Check Out All Scholarship Possibilities
When looking for scholarship programs, be aggressive in your search for options. You can find quite a lot out there.
‘”Parents’ employers, churches, nonprofit organizations, foundations and credit unions –in addition to colleges and universities themselves — provide scholarships of different amounts and for students meeting different criteria,” said Andrew Housser, co-CEO and co-founder at Achieve. “They are not all based on academics or athletics. Today, many scholarship search websites exist; plenty of colleges and universities even list several on their own websites as resources. High school guidance counselors can be helpful in identifying these.”
Apply for Scholarships Early
Goodman pointed out that scholarship deadlines are typically Dec. 31 and March 31. Don’t let these deadlines pass you up.
“You need to apply early,” Goodman said. “Most don’t start looking until March and that’s too late.”
Take College Courses in High School
Many high schools offer advanced courses that pay off in college credits. Take advantage of these.
“More colleges and universities are partnering with high schools in their areas to offer some classes to qualifying high school students,” said Housser. “These courses usually are free, or have a low fee, as they are offered within the high school curriculum. Seek these out and take full advantage.”
Look Into Possible Family Discounts
“If you have a relative who works at a college or education (teaching or staff role), see whether you could qualify for a family discount,” said Housser. “Some schools extend discounts beyond the immediate family.”
Consider Military Service
Yes, military service is not for everyone, but enlisting really helps you save substantially on college tuition.
“If you are willing to give several years of service to a branch of the military, the cost of your college classes will be covered,” said Housser. “Also, many colleges offer Reserve Officers’ Training Corps (ROTC) programs.”
Check Out Low-Tuition and Even Free Colleges
Some prestigious higher education institutions are eager to retain talent. They may grant you a “cheap” degree or even for no money.
“Check out the Webb Institute in Glen Cove, N.Y., the Cooper Union for the Advancement of Science and Art in New York and The Franklin W. Olin College of Engineering in Needham, Mass.,” said Housser. “There are many state schools with very affordable tuition for out-of-state residents and many private schools with much-lower-than-average tuition.”
Think About Your Career Choice
“You don’t want to base your career solely on whether you have student loan debt,” said Housser. “But if you are in a position where you do need to take out a student loan, consider that teachers or public servants may qualify for loan forgiveness under the Teacher Loan Forgiveness Program and Public Service Loan Forgiveness programs.”
“For example, in healthcare, the National Health Service Corps and National Institutes of Health both offer loan repayment programs for many medical and healthcare professionals,” said Housser. “The Indian Health Service Loan Repayment Program offers loan forgiveness for medical workers with a two-year service contract in Native American and Alaska Native communities.”
Graduate Early
You’re probably looking at a four-year degree right out of high school (unless you’re getting an associate’s degree). Do your best to graduate ahead of schedule to save on costs.
“If you can graduate in less than four years, you will sometimes pay less in tuition and always less in room and board,” said Goodman. “Students can do this by taking extra credits; online courses and summer school.”
If an early graduation is not feasible, at the very least, aim to graduate on time.
“Sixty of students take more than four years to graduate and end up spending more than they need to (and borrowing more than they need to),” said Goodman.
Already in Debt? Get Acquainted With Student Loan Forgiveness Plans
If you’re already carrying a boatload of student loan debt that’s become untenable, there could be a money-saving option for you in the form of forgiveness.
“For those with large student loan balances relative to their income, consider a strategy for loan forgiveness,” said Lehrman. “There are two types of forgiveness: Income-driven repayment forgiveness after 20-25 years with no employer-specific requirement OR a public service forgiveness program after 10 years (or 120 payments).”
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This article originally appeared on GOBankingRates.com: 11 Ways Families Can Save on College Tuition in 2024
