Tip 4: Complete some of your credits at a lower-cost school
You can save a lot by completing your general education requirements
at a community college, state university, or less expensive school and
then transferring to complete the degree. A less competitive school
may offer merit aid to attract talented students. For in-state
students, public colleges cost about half of private colleges when one
includes all costs. Community colleges cost even less. (Of course, the
more expensive colleges provide more financial aid to compensate for
the higher cost, but if you don't qualify for financial aid, a
community college can be a much less expensive way of getting a
college education.)
Using the data analysis system for the Beginning Postsecondary
Students Longitudinal Study (BPS:96/01), Mark Kantrowitz found that
62.2% of Bachelor's degree recipients who started off at a 4-year
college and never transfered graduated with cumulative debt of $22,620
on average. (Adding students who transfered from a 4-year college to a
4-year college brings the figures to 63.3% and $22,461. Cumulative
debt includes Stafford, PLUS and Perkins loans but not private student
loans.) This compares with 61.4% of students who transfered from a
2-year college to a 4-year college graduating with cumulative debt of
$16,091 on average. Thus students who transfered from a 2-year college
to a 4-year college graduated with a Bachelor's degree and $6,529
(28.9%) less debt than students who started at a 4-year college and
never transfered. The savings is about 2 to 3 times the difference in
tuition rates at the 4-year and 2-year institutions.
Talk to an admissions counselor to be sure your credits will transfer,
and learn as much as you can about the financial aid policy. Some
schools restrict financial aid for transfer students, or may only have
financial aid for students who transfer at the beginning of the
academic year.
There are, however, risks in starting off at a 2-year college with a
goal of transferring to a 4-year college. Students who start off at a
4-year college are more likely to attain a bachelor's degree and to
graduate sooner than students who start off at a 2-year
college. Similar results hold true for the choice between a 4-year
public college and a 4-year private non-profit college. A September
2008 paper by
Bridget Terry Long and Michal Kurlaender of the National Bureau for
Ecomonic Research (NBER 14367)
showed that students who start at a 2-year college are 14.5% less
likely to complete a bachelor's degree than students who start at a
4-year college.
A March 2009 paper by Natalia Kolesnikova of the Federal Reserve Bank of
St. Louis (summary, pdf) demonstrated a persistent salary gap of about $2,268 among
students who received a Bachelor's degree but started off at a 2-year
institution instead of a 4-year institution.
Starting off at a 2-year college saves several thousand dollars in
college costs as compared with starting off at a 4-year college, but
students who start off at a 4-year college are more likely to graduate
with a Bachelor's degree. In addition, the higher salaries earned by
students who obtain a Bachelor's degree after starting at a 4-year
college instead of a 2-year college pay for the added cost in only 3
years. A better strategy might involve enrolling at a 4-year college
but taking courses at a community college during the summer to save a
semester or two at the 4-year college.
Tip 5: Get to know the financial aid administrator at your college
While specific rules apply for financial aid calculations, financial
aid administrators still have a certain amount of leeway in
determining how aid is allotted. It's important to let your financial
aid officer know about any special circumstances that affect your
ability to pay for college.
Tip 6: Look for ways to pay in-state tuition
Most public colleges and universities charge considerably less tuition
to
in-state students
in comparison to students from out of state. Pick
a college in your state to keep costs down. This is one of the most
effective ways of saving on college costs as compared with an
out-of-state public college or a non-profit college.
If you are considering an out-of-state public college,
investigate
regional student exchange programs, in which some states offer reduced tuition
rates for students from nearby states.
Or if your heart is set on going out of state, consider moving a year
before starting college. After you've established residency (usually
one or two years), you should be eligible for in-state tuition.
Policies vary from school to school and state to state, so be sure to
check with your school of choice.
Tip 7: Accumulate credits before college
You'll save a lot in tuition by earning college credits while you're
still in high school. Take Advanced Placement courses or think about
taking courses at a local community college to get a head start on
your college career. You may be able to place out of required courses
by taking an "advanced standing" exam at the school.
Tip 8: Combine degrees to save time and money
If you're planning to earn multiple degrees, you can save a year's
tuition by enrolling in a combined degree program. Some schools will
allow you to combine a bachelor's degree with a master's degree or a
master's degree with a doctoral degree. Some colleges may offer a
program that combines a bachelor's degree with an M.D.
Other colleges offer an accelerated 3-year program, or will allow you
to graduate early if you complete all the requirements ahead of
schedule. You can do this by taking a somewhat heavier load, such as
an extra course every semester, or by taking classes during the
summer. Some schools do not charge extra tuition for taking additional
classes.
Tip 9: Live at home during college
You can save a lot if you live in your parents' home when you go to
college. You might miss out on some 'classic' college experiences, but
your food and housing bills will be a lot lower. Or if you really want
the residential college experience, compromise by spending some years
at home and some years living on campus.
Another method of saving on housing is to share an apartment with some
fellow students, especially if you plan to work near school during the
summer. But be sure to select your roommates carefully!
On the other hand, commuting to college can be stressful due to late
busses, heavy traffic, and the occasional car trouble. Keep in mind
that you will learn more from your fellow students than from classroom
lectures. So this may be one cost-cutting measure you choose to overlook.
Tip 10: Save on Textbooks
Textbooks add up to $1,000 or more a year to the cost of a college
education. You can save some money by buying used textbooks, which
often cost half the price of a new textbook. If you buy new textbooks,
consider selling them back to the bookstore at the end of the
semester. Get a copy of the class syllabus early, so you can shop
around on the internet. (If the syllabus doesn't list the ISBNs for
the books, you can find them on the publisher's web site. Also look on
the publisher's web site for alternate formats that are less
expensive, such as softcover editions and ebooks.)
If the course only uses a chapter from a textbook, consider using the
copy that is on reserve in the library. One caveat: Sometimes the
library copies go "missing". Sharing textbooks with a roommate or a
friend is also potentially problematic, since you may both need the
book at the same time.
If the faculty always gets the latest edition of a textbook, compare
it with the older edition. Sometimes the changes aren't significant
enough that you need to get the new edition, and older editions are
often much less expensive on the used market. Or ask the faculty to
consider using the older edition for a few more years.
Also ask faculty who use just a chapter from each book to look into
custom publishing. Some publishers will assemble custom "Readings in
XYZ" compilations or unbundled unnecessary features, saving the
students money compared to buying the individual textbooks. Or the
local copy shop can photocopy the chapters, so long as they pay the
appropriate Copyright Clearance Center fees.
One problem with ebook rental is you can't keep the ebook after the end of
the school year, and the cost of an ebook may be higher than the net
cost of buying a print edition and selling it back to the bookstore at
the end of the semester.
If your actual costs for textbooks exceeds the allowance that is in
the college's official cost of attendance figures, consider asking the
financial aid office to use
professional judgment
to adjust your student budget to reflect actual costs instead of
average costs.
Tip 11: Apply for 'life experience credit'
If you're entering school from the work force, you may be able to earn
college credit for your employment and life experience. Some schools
administer their own tests and standards while others allow you to
take CLEP (College-Level Examination Program) and Proficiency
Examination Program (PEP) tests for college credit.
Last Tip: A bunch of random tips
Get a part-time job. Consider cooperative
education programs and study abroad. Sell your TV and VCR. Visit home
less frequently. Some schools give Resident Assistants free room and
board. If you're a US citizen, consider ROTC or other forms of
military aid. Eat a full meal before going shopping for groceries.
Keep costs down and maximize your financial aid, and you'll look
forward to graduation day all the more!
