Let's say you are the beneficiary of a 529 Plan, you found all possible scholarships and grants by filing your FAFSA and college applications early and applying to every scholarship you found with your on-line search (with that great GPA you worked so hard for), you worked your job all you could (full-time during the summer and 10-15 hours per week during school terms), and you are taking every tax credit and deduction allowed. Now that you have worked the funding side of the cost equation, how can you minimize the expense side of the equation? Here are some of the best ideas to reduce your costs, starting with the approaches with the largest cost savings.
1 - Go to a public school - in your state. According to the Department of Education, for the 2009–10 academic year, the average annual cost for full-time undergraduate tuition, room, and board was estimated to be $15,014 at public four-year institutions (in-state tuition rates) and $32,790 at private institutions. There - I saved you 54%.
2 - Start at a community college or regional campus of a public college for the first two years of a four-year degree. From the above study, the average 2-year public institution cost was $7,703, a savings of 49% off the four-year public school cost. You will need to check to make sure any credits you earn can be transferred to your target school when you complete the first two years. The latest recession has profoundly increased the attendance at 2-year public schools, with increased attendance across all income levels.
3 - Stay home. That is, live at home rather than paying room & board away from home. The average room & board for all schools was $8,503 per school year, per the Department of Education study cited above. You can probably do that more cheaply at home, where you are already paying the mortgage/rent, utilities, etc, though the student would likely need a car.
4 - Do a careful evaluation of each school's financial aid offer you receive. The financial aid award letter format is not standard and each school may include different items. For example, some schools may include any loans you're eligible for (even if you don't apply), and others will not. Compare schools on a net-cost basis (total costs minus total financial aid, excluding unsubsidized student loans).
5 - Start college by working with your adviser to develop a plan of coursework to graduate on-time. Then work to get ahead of your plan so you can withstand any setbacks (dropped courses, scheduling problems, illness, etc). Graduating late costs you money for school, delays your entry to your career, and accrues further interest on any student loans.
6 - If your high school has the option and you qualify, take Advanced Placement (AP) and college courses in high school. You can reduce your workload when in college, allowing you to focus on your remaining studies and keeping your grades high. Also, you may be able to graduate early to your plan, and spend even less on tuition.
7 - After starting college, explore testing out of classes (or qualifying for credit with your life experience). This opportunity varies by school, department, and even professor, so you will have to pursue this one. Again, you may be able to graduate early to your plan.
8 - Get a roommate (or three) if living off-campus, or live in a quad-style dorm if staying on-campus. Split expenses across as many people as you feel comfortable. This can even extend to sharing a car. Or see below.
9 - Ditch the car - take a bike, bus, or walk. Often your school identification badge will allow free access to the local public mass transit system. A car may not be needed often when in school, and may not even be allowed for freshman or sophomores. You can share a ride for trips back home with someone with a car whose family lives nearby.
10 - If living on-campus, check the meal plans offered carefully - most students do NOT use all of their meal plan, instead having snacks in their room, off-campus meals on the weekends, or meals during trips home. Look for the most flexible meal plans available; some allow for a mix of standard meals, funny money for the on-campus convenience store, or credit at nearby off-campus locations.
11 - Do NOT accept early decision when selecting a school. Early decision is a common early admission policy used in college admissions for admitting freshmen to undergraduate programs. It is used to indicate to the school that the candidate considers that institution to be his or her top choice. Candidates for financial aid are, if admitted under early decision, unable to compare financial aid offers from different colleges, and may lose bargaining power in getting a better financial aid package.
12 - By used testbooks instead of buying new, or you can even rent textbooks. Finding used copies may be difficult if you need to get a new version not yet available on the used market (especially school-specific versions). There are even international versions sometimes available for 1/3 the cost, but some details, page numbering, and homework problems may differ. The easiest and best way is to do a "shopping" search on the ISBN number of the textbook and compare, but be careful you don't get the international version (if you can't use it). There are many sites on the Internet available, such as half.com and textbooks.com. Also, standard shipping for books can take 2-3 weeks, so be sure to order early or pay for the expedited shipping so you have the book well before classes start. And consider selling your textbooks after the course ends.
13 - And finally, a more unique option - go to school in Canada. Americans are eligible for US guaranteed student loans at most Canadian universities and will find Canadian tuition rates comparable to in-state tuition rates in the US (though it may vary by course of study). You need to get accepted first by the school, and then apply for your study permit with the Canadian government. You will also have to prove you have enough money for school and living expenses.
There are a lot of services, seminars, books, and DVDs out there that promise to reduce college costs, though they may focus too much on costs and not enough on value. They also may guide you to a lower-cost school, but it may be the wrong school for the individual student. Just remember to focus on lifetime value, not just lowest cost.
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