College Tuition is Expensive, Planning Ahead Helps Save Money

The price of a college education is going up so fast it is hard to keep track of the expenses. Between tuition, room, board, supplies, texts, and other activities, the final price tag can overwhelm most families. If you have more than one child, the burden is even higher. You really need to find the best money management strategies and ways to reduce costs, and here are a few suggestions that will give you a good start.

State Schools vs. Private Universities

Princeton University, a prestigious private university charged over $34,000 in tuition alone this year. Compare that to University of California at Berkley which only charged $9,000 for the same quality education for in-state residents. This isn’t to say that private universities don’t provide a top notch education for their exorbitant price; it just means that you can get an excellent education at a state school, too, and save a lot of money.

Another good option for students struggling financially is to start out at a junior college. Take two years of classes there before you transfer your credits to a state school. Credits cost much less, you can live at home and work at the same time. You are also less likely to waste huge sums of money drinking and partying: favorite student pastimes at traditional four year colleges.

Editor’s Note: I’ve read that students who go to community college with the intend of transferring do not always execute their plans. This no doubt is a cost saving move, but it has a higher chance of your children not finishing at the university that he/she wanted to attend from the beginning. It’s important to factor this into your decision.

Tax Free Savings

If you know you want to help someone go to college, start saving right away in a 529 savings plan. These funds are tax free and you can save between $100,000 and $270,000 per recipient. With no limitations on age or income levels, you can begin this savings account at any point, no matter how much you earn.

Loans, Scholarships, Grants, Oh My!

The rules for getting college loans have eased up considerably in the last decade or so. It is now possible for just about anyone accepted to a college program to qualify for a student loan of some sort. Grants are often given on a per-needs basis and scholarships are available for everything under the sun. If you are serious about attending college, you generally know this by the time you enter high school. Apply for every scholarship you can qualify for to accumulate funds in advance, and keep those grades up and activities current.

Getting in is the first part of the battle. Once you get to college, you need to continue saving money if you want your stash to last through four years.

Textbooks

One of the biggest unavoidable expenses is textbooks. It isn’t unusual to find yourself assigned several books each running $100 or more per semester. Don’t buy new if at all possible; there is a thriving used book market online. If you can’t purchase the book you need, or it is still too expensive, see if someone else just finished up that class last term and if you can borrow their book. If that doesn’t work, most teachers leave at least a few copies of the text at the library. You may not be able to take it out, but you can read it there.

Food

Many universities require freshmen to take a meal plan as part of their first year experience. After that you have more options. If you still want a meal plan, choose one that matches your eating style best. If you are content with a few meals a week and then snack in your room the rest of the time, a punch card is more sensible than a full meal plan. If you live in an apartment setting, bulk cooking save a lot of money, especially if you take the food you cooked along for lunch rather than buying each day.

Editor’s Note: Before you show your dissatisfaction about the “required” expensive meal plans, consider that everyone eating at the same place every day allows your children to socialize and meet many people than they otherwise would. Being in the cafeteria is also much more money saving than be at a restaurant for instance. The meal plans are expensive, but it’s not all that bad.

In the end, saving money both on getting into college and at college takes some preparation. It can be done, and a quality education doesn’t have to put you in the poor house or in debt for years.

This is another series in the How to Save Money ebook. Have you gotten yours yet? If not, remember to get your free copy through subscribing to the free newsletter.

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