Your children are going to college. You may think it will be easy because you’ve been saving for it. But seeing the college fee structure, you’ll know it will not be easy. Coming out of the stress-induced fog might help you manage the costs.
Here are five things you can do to help you on this journey of paying for college:
Understand your financial situation
Now that your child is off to college, as parents, you’re now left with taking care of the expenses like tuition, housing, and school supplies. Sitting down and looking into your finances is step one for parents. The next step is to make a budget, reevaluate your finances, and look into every savings account because the college costs are now added to your other expenses.
Debt from college tuition has skyrocketed over the last several years. Parents and students are weighing their ROI (return on investment) before making their college choices. As college costs have shot up, so has student debt. How can you pay for college without incurring debt?
According to the latest Quarterly Report on Household Debt and Credit, outstanding student loan debt stood at $1.58 trillion in the fourth quarter of 2021, an $8 billion decline from the third quarter. About 5 percent of aggregate student debt was 90+ days delinquent or in default in the fourth quarter; the lower level of student debt delinquency reflects a Department of Education decision to report current status on loans eligible for CARES Act forbearances.
That’s the bad news. But if you’re a savvy consumer and research the costs before signing on the dotted line, you should be able to go to college without incurring debt. Zac Bissonnette, author of DebtFree U, is proof that it can be done. He graduated from college with zero debt.
Believe it or not, you may be able to graduate without debt if you use these 10 ways to pay for college:
It’s that time of year when seniors will be weighing their college options. Choices will be made as parents and students evaluate colleges who offered admission.
The long wait is over and it’s time to make a decision. Which college will your student attend? This decision feels like the most important decision in his life up to this point and will weigh heavily on his mind and yours over the next month.
Before your teen makes the decision, however, you should weigh your college options. You would never purchase a home without determining its value, its fit for your family, or even its location. This college decision should be approached in the same manner. And to complicate matters, the decision has to be made in a timely manner—the National Candidate’s Reply Date is May 1st.
If your student didn’t get an offer of admission from his first or even second choice college, or he is accepted without enough financial aid, it’s time to re-evaluate the colleges on his list. Your teen should take a closer look at those schools on the list that weren’t on top. If he did his homework before applying, these schools should be more than sloppy seconds.
There is one thing you can be sure of in life: college tuition will rise every year. Prices rise and fall all around us, but tuition never seems to go down.
College tuition prices are a lot higher today compared with two decades ago. For instance, the average cost for tuition and fees among ranked public and private National Universities – schools that are often research-oriented and offer bachelor’s, master’s and doctoral degrees – has risen significantly since 2001, according to U.S. News data.
From the 2008 edition of the U.S. News Best Colleges rankings to the current 2022 edition, in-state tuition prices among public National Universities grew by almost 79%. Experts say state schools have typically had more room to increase tuition levels compared with their private counterparts, and finding a bargain price at the state level is becoming harder.
The economic downturn resulting from the coronavirus pandemic may also affect tuition costs in the years to come.
In just comparing the 2020-2021 school year to the current 2021-2022 academic year, tuition rates at both private and public National Universities have increased by at least 2%, according to U.S. News data.
Have you been thinking about some of the things that you can do when it comes to saving money while living off campus? There are plenty of options here that you can consider. In this article, we’re going to be looking at a few tips that will always help you to save money when it comes to your off campus home, so keep reading down below if you would like to find out more.
Grocery Shopping
The first thing that you are going to save money on is your grocery shopping. If you are only ever buying named brands, why? Have you tried the cheaper alternatives? A lot of them taste just as good as the larger brands as they are made from the same things. We’re of course, not saying that this is always true, but even if there is a little taste variation, there is a huge price variation. The last thing that we want is for you to be spending money unnecessarily when there are cheaper options that you do actually like. If you try the alternatives and decide you don’t like them, that’s completely fair enough, but you have got to try them first.
Every parent knows about tuition, room, board, books, and other college-related expenses once your student is accepted. But what about the costs prior to being accepted to college? How can you score some fee waivers, free advice, and free tutoring. Let’s face it—every little bit helps when you are saving for a college education and cutting costs can put more in the college savings piggy bank! Take advantage of these free pre-college costs.
Fee Waivers
With all the standardized tests, AP exams, and college application fees, those fees can add up. Not everyone qualifies for fee waivers, but it’s worth asking.
On top of those fee waivers, there are colleges that don’t require application fees:
America’s 25 Top Colleges With No Application Fees
College is expensive. However, college students tend to take a casual attitude toward spending; hence they waste money in college. After tuition, room and board, students often find themselves tapped out and living on ramen noodles. But it doesn’t have to be that way. Students can save money by making wise choices and being cognizant of their spending.
Following are 10 ways to save money in college:
1. Create a budget
Any smart spender creates a monthly budget, especially college students who have limited discretionary funds. Even if you’re being subsidized by your parents and have a work-study job for expenses, it’s smart to watch your spending. Pizza and fast food delivery can add up.
2. Take on a job
If you qualify for financial aid, most colleges will offer work study. This allows you to work on campus during school and use that money for college expenses. Even if you don’t qualify, get a job while you’re in college. Not only will it subsidize your spending but studies show students who work in college get better grades.
Parents and students who understand and plan for the cost of college are wise consumers. Before applying to college, it makes sense to plan ahead and know your options before making a decision about college. The College Board and FinAid.org provide parents and students with several different college calculators to determine college costs, the expected family contribution for financial aid, and how much student loan payments will be upon repayment. Knowing these figures will help you better plan for the costs associated with college.
Want to know how much a college will cost you? Look on their website. The tuition, room and board is most likely clearly listed. But is that all it will cost you? If you have or had a student in college, as I did, you know that the tuition, room and board are just the beginning. There are hidden fees you might not see.
By the time you add on lab fees, student fees, dorm damage deposits, technology fees, parking and car registration, activity fees, and the elusive “miscellaneous” fees, you will add from $1000-$5000 in fees to your college bill, depending on the college.
Added to these, you can tack on the cost of books, Greek life, meal plans, and dorm, computer or health insurance to total college costs. And don’t forget travel expenses if your student chooses to attend a college far from home.
In an article in Fortune Magazine, one parent voiced her frustration with the lack of transparency related to college costs:
The fees are typically provided by the college’s bursar’s office, if requested, or listed in various places on a university’s website—but they aren’t always easy to find, says Michelle Gillespy-Goldstein, whose daughter attends the University of Colorado at Boulder.
“The lack of transparency is frustrating,” Gillespy-Goldstein says. “They tell you so many things when they’re recruiting you, but they fail to mention that piece.”
Before choosing a college, parents and students should ask for a detailed listing of additional fees involved if they aren’t listed on the website. In addition, talk to current students on the tour and ask about hidden costs they have encountered while at college.
Why do this? You don’t want any surprises when the first bill arrives.
With many students overburdened with debt after graduation and parents stretching to pay for college beyond their ability to repay, it makes sense to plan ahead and know your options before making a decision about college. The College Board at FinAid.org provides parents and students with several different college cost calculators to help families plan for college costs.
The three most commonly
used calculators are as follows:
College Cost
Projector
Since college costs
increase at about twice the inflation rate, this calculator helps project how
much college will cost when you are ready to enroll. In order to calculate the costs,
you would enter the current costs of attendance and the number of years until
attendance. The calculator then projects the estimated cost.
EFC (Expected Family Contribution)
Calculator
This form is used to
calculate the financial need which is used by colleges to determine the
financial aid package. It calculates the need for a single year and helps you
know in advance the amount colleges will expect you to pay toward your college
education. This figure will also determine the amount of financial aid you
receive.
Loan Repayment
Calculator
This calculator computes
an estimate of the size of your monthly loan payments and the annual salary
required to manage them. Students should always calculate the loan repayment
amounts before taking on loans that they are unable to repay upon graduation.
Once calculated, this tool gives you an estimated annual salary needed to
afford repayment.
FinAid.org also offers many more calculators that can help you plan and budget for college. Here’s the extensive list with links:
(Privacy guarantee: None of the information you enter in these calculators will be saved, and no record of your sessions will be stored anywhere.)
It is always wise to
know your college costs before you make a college choice. Knowing these figures
also helps you when evaluating financial aid packages and comparing the various
offers from the colleges you are considering.
