{"id":54445,"date":"2023-10-27T17:03:15","date_gmt":"2023-10-27T17:03:15","guid":{"rendered":"https:\/\/www.collegeconsensus.com\/?p=54445"},"modified":"2023-11-12T16:03:20","modified_gmt":"2023-11-12T16:03:20","slug":"how-do-i-pay-for-college","status":"publish","type":"post","link":"https:\/\/www.collegeconsensus.com\/resources\/paying-for-it\/how-do-i-pay-for-college\/","title":{"rendered":"How Do I Pay for College?"},"content":{"rendered":"\n

Money is the biggest obstacle to college<\/a> for most people and the main reason trust in college as a good investment is at an all-time low<\/a>. Our experts here at College Consensus have compiled helpful answers to the most common questions students of all ages and backgrounds have about paying for college.<\/p>\n\n\n\n

Before college<\/h2>\n\n\n\n
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Is college still a good financial investment?<\/summary>\n

In an era that values hustle culture and keeping personal debt low, perhaps it should not come as a surprise that many prospective students have been wondering whether or not going to college will pay off for them. With the average cost of attending a four-year college clocking in at around $142,000, students should seriously ponder whether or not attending university is the best path for them.<\/p>\n\n\n\n

Recent statistics have shown that those who achieve degrees are far less likely to be unemployed<\/a> than those who have not pursued higher education. In a dynamic and ever-transforming job market, this is a good assurance. Researchers have also determined that, over their lifetimes, those who possess college degrees are likely to make over a million dollars more<\/a> than those who have just a high school diploma. College graduates are also more likely to be homeowners<\/a>. Although college may be a significant investment, it can yield great rewards.<\/p>\n\n\n\n

Recent statistics have shown that those who achieve degrees are far less likely to be unemployed<\/a> than those who have not pursued higher education. In a dynamic and ever-transforming job market, this is a good assurance. Researchers have also determined that, over their lifetimes, those who possess college degrees are likely to make over a million dollars more<\/a> than those who have just a high school diploma. College graduates are also more likely to be homeowners<\/a>. Although college may be a significant investment, it can yield great rewards.<\/p>\n\n\n\n

There are a great many professions that don’t require college<\/a>. If a student is passionate about subjects such as automotive mechanics or cosmetology, for example, it may ultimately behoove them to skip college and opt for a trade school instead. Also, statistics have shown that people who live in smaller towns are less likely to benefit financially from a college degree than those who live in big cities. When it comes to attending college, there is no one-size-fits-all answer.<\/p>\n<\/details>\n\n\n\n

How early should I start thinking about paying for college?<\/summary>\n

As a student in the United States, there is literally no limit to how early you should start thinking about how you’re going to pay for college. In fact, some experts believe that students need to start preparing for college no later than 6th grade<\/a>, but hopefully their parents started a college fund on the day they were born.

The average annual salary in the U.S. is $83,195<\/a>. Meanwhile, the average cost of living is almost $73,000. This leaves less than $10,000 annually to deal with major unexpected expenses, vacations and some mad cash. In other words, it’s quite clear that your parents probably can’t pay for everything, especially at an average cost of $104,108<\/a> for in-state tuition over four years.

You’ve basically got three choices. You can either take on a lot of student debt, get a scholarship or help your parents save for college. If you choose the third option, you’ll have to put aside almost everything you make during your high school job. Unfortunately, even if you save all your money, you won’t make a big dent in your tuition. That’s because the federal minimum wage is only $7.25<\/a>, and you can only work 24 hours a week. Even if you live in Washington, D.C., which has the best minimum wage in the country, you won’t be able to pay for four years of education without a lot of help.

Sadly, the gap between income and tuition is growing every single year. Therefore, if you haven’t already started thinking about it, now is the perfect time to start planning how you’ll pay for college.<\/p>\n<\/details>\n\n\n\n

How do I talk to my family about paying for college?<\/summary>\n

If you plan on going to college, you may be considering asking your family to help you pay for it. Here are some things you should do beforehand to make this discussion less difficult.<\/p>\n\n\n\n


When you sit down to talk to your family about paying for college, there\u2019s a good chance that they will want to know exactly how much money<\/a> you are asking for. This is why it\u2019s a good idea to determine how much money you\u2019ll need beforehand. Find out how much classes cost per credit hour as well as how many classes you will need to take to graduate. If you can, give them a general idea as to how much money they will need to pay each semester and how much money you will be able to contribute towards your college education.

Before your family agrees to pay for college, they may want to know whether or not a college degree is actually necessary. This is why you should make a list of ways that a college education will be beneficial for you. This can include things like helping you get a job or increasing your salary<\/a>.

Talking to your family about paying for college doesn’t have to be scary. Just make that you have the proper information that you need before you schedule a time to talk to your family about helping you pay for your college education.<\/p>\n<\/details>\n\n\n\n

What is a 529 college savings plan?<\/summary>\n

A 529 college savings program is an savings plan that allows your money to grow tax free as long as you use it for specific education expenses. Eligible expenses include tuition, room and board, books, printers, computers, and more. A 529 plan can be used at a variety of eligible public and private schools such as universities, community colleges, trade schools, and apprenticeships.<\/p>\n\n\n\n

A 529 plan encourages parents to save money for future education expenses by offering tax benefits. The benefits include tax-free earnings and withdrawals. Some states also provide additional tax incentives such as reducing your state tax obligations by the amount of the contribution.<\/p>\n\n\n\n

Another important consideration is that the assets in your child’s 529 plan won\u2019t negatively impact their ability to qualify for federal aid. The 529 plan doesn’t count as heavily toward your expected family contribution (EFC). The EFC is the amount you and your family are expected to pay for college based on individual financial circumstances.<\/p>\n<\/details>\n\n\n\n

How much money do I need to save for college?<\/summary>\n

Over the past two decades, the cost of going to college has skyrocketed, and it’s not uncommon to spend over $100,000 to get a degree from a private school. However, the exact amount that you’ll need to save for school depends on a number of factors. These factors include the type of college you’re attending, the level of education you plan to attain and whether you’re getting any type of financial assistance.

First consider what type of school you plan to attend. You will spend an average of $10,662<\/a> per year to attend a public college in 2023 compared to more than $42,000 to attend a private college. Community colleges tend to cost significantly less, with some schools charging less than $10,000 to get a two-year degree. In many cases, credits obtained at a two-year school can be transferred to a four-year college or university.

It’s also important to consider how far you’re planning to go with your education. If you plan to pursue a postgraduate degree<\/a>, you’ll pay an average of $20,000 annually. Your total college bill could exceed $40,000 depending on where you plan to study and whether you have access to grants or scholarships.

Of course, how much financial aid you receive is an important factor. Athletic, academic or other scholarships can cover some or all of the cost of your undergraduate degree. Grants may also be available that typically don’t need to be repaid unless you fail to graduate, and they can total thousands of dollars over the course of your education. Student loans can also cover any costs that you can’t pay on your own.<\/p>\n<\/details>\n\n\n\n

How do I find out how much a college will cost?<\/summary>\n

Obviously, there are many different colleges and universities at a variety of price levels. When you want to uncover the cost of a particular school, there are a few tips that can help.<\/p>\n\n\n\n

To begin, most colleges have “net price calculators” published on their websites. You simply enter your financial information, and cost estimates are determined. In most instances, grants and scholarships are applied to the overall cost based on financial need. This is an easy way to find an approximate price.<\/p>\n\n\n\n

It is vital to consider living expenses. Oftentimes, the cost of room and board are separate from a school’s tuition. Also, certain courses of study come with extra fees.<\/p>\n\n\n\n

Before applying to college, it is crucial to understand the true cost. Many individuals discover that the advertised price is rarely the amount that is paid. Depending on financial circumstances, it is possible to receive assistance. It is wise to consult with an advisor at a preferred university and discuss financial aid options.<\/p>\n<\/details>\n\n\n\n

Why does college cost so much anyway?<\/summary>\n

For students who are contemplating college, the costs can seem staggering \u2014 and rightly so. Over the past 40 years, the average price for an undergraduate degree skyrocketed<\/a>, vastly exceeding wage gains during the same time period. But why has it become so expensive to secure an education? There are a number of factors influencing the current costs.

Inflation
Like everything else in the post-pandemic era, the price of secondary education has exhibited a rise due in part to inflation<\/a>.

Improving Campuses and Amenities
Although it’s more competitive than ever to gain entrance to their top college picks, students sometimes forget that colleges and universities are also competing for their affections. In order to attract the best and brightest pupils, many institutions are continually upgrading their facilities and adding new programs that will appeal to prospective students.

Faculty and Administration Costs
Tenured faculty members are often cited as one of the reasons for high college costs. These are the professors who have been teaching for so long that their salary has become much higher than that of a typical educator at the same school. However, the statistics are now showing that the increasing presence of administrators<\/a> may be more responsible for the high cost of college.

Due to these factors \u2014 and many more contributing to the average bill for college \u2014 it doesn’t seem likely that the price of education will come down anytime soon. It’s up to aspiring university students to figure out how best to prepare for this.<\/p>\n<\/details>\n\n\n\n

Will taking college or AP courses in high school make college cheaper?<\/summary>\n

If you are looking for ways to make college affordable, it pays to start studying as soon as possible. High school students who take college or AP classes can save a lot of money later on.<\/p>\n\n\n\n

One of the most effective ways to save money is to take Advanced Placement (AP) classes. These courses are taught in high school, and if you pass an AP exam at the end of the year, the class qualifies for college credits.

Since AP courses are free for high school students, this results in big savings. Depending on your college’s rules, each passed exam can be worth two to five college credits. Since the average credit hour costs $390<\/a>, your AP classes could end up saving you thousands of dollars each semester.<\/p>\n\n\n\n

Another excellent option is dual enrollment. These classes let you take a college class while you’re still in high school. Compared to AP classes, dual enrollment classes are often easier and more straightforward. You get college credit as long as you pass the class, and you don’t need to take a rigorous exam.

Dual enrollment classes are publicly funded. High school students do not have to pay anything themselves to take the classes. Since each class typically costs around $1,170, each dual-enrollment course you take saves you money.<\/p>\n<\/details>\n\n\n\n

What if my family doesn’t have enough money for college visits?<\/summary>\n

The only way to fall in love with a college campus is to schedule a visit. Taking a tour allows a prospective student to experience the atmosphere. Also, it is possible to ask questions to current students and faculty members. Unfortunately, not everyone can afford this type of travel.<\/p>\n\n\n\n

Some colleges and universities provide assistance for college visits to people who need financial help. It is advised to contact a preferred school and to inquire about opportunities for partial funding of transportation, food, and lodging. In certain cases, students receive free accommodations in a dorm and free food from the dining hall. Likewise, it is smart to contact hotels and airlines. Some offer deals to traveling students.<\/p>\n\n\n\n

To cut travel, it is wise to visit a group of colleges in one geographic location. Also, it may be possible to schedule a virtual tour, which costs nothing. Many high schools offer college fairs with representatives that can provide desired information as well.<\/p>\n\n\n\n

When the time comes for a visit, it is essential to contact a school’s admissions office. Most times, a college will do anything possible to welcome a qualified applicant for a tour. It is an important part of the selection process and helps a student make a solid choice.<\/p>\n<\/details>\n\n\n\n

What are my options if my family can’t help pay for tuition?<\/summary>\n

If you’re not lucky enough to have rich parents, a trust fund or a maxed-out college savings account, there are still numerous options for funding your education. One or more of the following strategies may help you finance the education you want.<\/p>\n\n\n\n

Almost every college and university offers scholarships to incoming students that are based on high standardized test scores and other academic achievements. Scholarships don’t require repayment, and in most cases, there’s just one application to fill out in order to be considered for dozens or even hundreds of scholarships.<\/p>\n\n\n\n

If you don’t qualify for academic-based awards but can demonstrate serious financial hardship, there are still plenty of scholarships that are available to you. The previously mentioned scholarship application process at your prospective school will also put you in the running for numerous awards based on financial need.<\/p>\n\n\n\n

Federal grants through the Pell Grant program are offered to millions of students every year. These awards generally don’t require repayment and are based on family size, financial need and other factors.<\/p>\n\n\n\n

Every college and university has service jobs that need to be filled, and many offer these jobs to their students first. Taking advantage of a co-op program is another great way to earn money for school along with valuable work experience in your chosen field.<\/p>\n\n\n\n

Although loans come with the downside of having to be repaid, these financial instruments allow many students who would otherwise be unable to afford college to complete their educations and increase their lifetime earnings.<\/p>\n<\/details>\n\n\n\n

Choosing a college<\/h2>\n\n\n\n
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How much should cost determine my choice of college?<\/summary>\n

How much cost should determine your choice of college depends on a number of factors, most of which are individual to your situation.

For many, the most important factor to consider is how much it costs relative to your family’s income and net worth or, if applicable in your case<\/a>, just your own.

That said, an essential element that many undervalue is the final cost, not the sticker price. This not only includes any scholarships or grants but also indirect costs, such as rent, food and transportation, in addition to tuition, fees and textbook expenses.

And it must be stressed that you may receive scholarships and grants that you did not anticipate, and you should not rule out pricier schools solely based on sticker price<\/a>.

You should also take into account that this is essentially a once-in-a-lifetime decision when considering if you will attend a dream school that costs more than your second or third options.

Other factors to consider include a school’s extracurricular activities, location, student body, admission criteria and academic offerings and reputation.

However, if you are going to struggle financially as a result, it may not be worth it. There is definite value to graduating with no or little debt.

Of course, any loans that you take out should be paid back, and you should hesitate to borrow more than you expect to earn in your first year after earning your degree.

If you do decide to turn down your top choice related to cost, note that you will not be alone as 40% do<\/a>.<\/p>\n<\/details>\n\n\n\n

Is online college cheaper than regular college?<\/summary>\n

When looking at reducing college expenses, online learning could be an important consideration. In general, online education can be a more affordable choice because the school has lower overhead expenses to administer the classes. It can also be less expensive as a student because you won’t have transportation costs and course materials may be cheaper. You also have freedom of location, which could allow you to live in a less expensive city than where the college is located.<\/p>\n\n\n\n

However, you shouldn’t assume that online education will be cheap. While the average cost of an online education is less expensive, it’s still a major investment and you may still need financial aid or student loans to help pay for your degree. It’s also an important consideration that many online-only programs don’t offer the same kinds of aid as campus-based institutions.<\/p>\n\n\n\n

Overall, however, an online education is almost always less expensive overall, and it often offers more flexibility in finishing your degree. Flexible options include credit for previous experience, transferring credits from other schools, and accelerated classes. These options help further reduce the costs, and flexible scheduling options make it easier to work while attending school.<\/p>\n<\/details>\n\n\n\n

Is it cheaper to start at a community college and then transfer to a university?<\/summary>\n

In most cases, it is cheaper to start your education at a community college and then transfer your credits to a university. Community colleges have a lower tuition rate and are often located closer to your home, which could also reduce your living expenses or transportation costs. They are a great way to complete some of your initial general education courses, allowing you to focus on your degree-related classes at the more expensive university.<\/p>\n\n\n\n

One important consideration, however, is ensuring that your credits will transfer. If you already know which university you’ll enroll at later, make sure you understand their policies. Schools may have limits on how many transfer credits they’ll accept or which specific classes will apply to your degree program. For example, if you take a basic math class at the community college, but your university degree program specifically requires an algebra class, the credits may not transfer, or they may only count as an elective rather than toward your degree. As long as you understand the transfer requirements, community colleges are a good option for beginning your education and saving money.<\/p>\n<\/details>\n\n\n\n

Are there colleges I can attend for free?<\/summary>\n

College costs have been rising faster than inflation<\/a> for decades, putting higher education financially out of reach for many students. But did you know there are ways to attend college without paying a dime?

Here are three ways to attend college for free:<\/p>\n\n\n\n

Many states offer two years of free community college to high school graduates and certain career-changers later in life. These programs not only let you earn an associate’s degree for free but also provide a cost-effective way to work toward your bachelor’s degree.

States offering free community college programs include California<\/a>, Maryland, Maine, Tennessee<\/a> and Washington.

It’s important to note that while these programs cover tuition and fees, you may still be responsible for costs such as housing, books and transportation.<\/p>\n\n\n\n

Some colleges offer guaranteed full-tuition scholarships to applicants who meet certain GPA and SAT\/ACT score requirements. Other colleges offer full tuition and even full rides to students who are National Merit finalists or semifinalists. For example, National Merit finalists get a full-ride scholarship at the University of Alabama<\/a>, and National Merit semifinalists get full tuition at Washington State University<\/a>.<\/p>\n\n\n\n

Work colleges are institutions that require students to work on campus as part of their academic program. These colleges offer free tuition, and students work to defray the cost of their education. Two examples of highly rated work colleges are Berea College in Kentucky and College of the Ozarks in Missouri.<\/p>\n<\/details>\n\n\n\n

Is it cheaper to go to college in my home state?<\/summary>\n

When selecting a college, an important consideration is whether to attend college in your home state. It is often cheaper to attend an in-state college for several reasons. First, most public colleges charge a lower rate for current residents because you or your family have presumably paid taxes that benefit the school. The state would also like to retain its college-bound residents rather losing them to another state, which is known as “brain drain.” For the most part, these rate differences apply only to public institutions and not private schools.

According the College Board data<\/a>, your out-of-state tuition costs could be as much as triple the cost of in-state tuition.

Next, there’s could also be the consideration of reduced housing costs if you’re able to live at home rather than paying for a dorm or apartment, and you could have lower travel expenses for visiting your family. A final consideration is that if you’re using student loan funding, lower tuition translates to lower student loan balances and future interest payments.

If you do want to attend an out-of-state college and pay in-state rates, you’ll first need to establish residency. Requirements may vary by state, but a common requirement is for the student to live in the state for at least a year before the initial college registration.<\/p>\n<\/details>\n\n\n\n

What’s the difference between in-state and out-of-state tuition? Why is it different?<\/summary>\n

When looking at average college costs, it’s important to consider the difference between in-state and out-of-state tuition.<\/p>\n\n\n\n

When colleges charge students for their courses, they charge different rates on whether students are already residents of the state the college is located in. In-state students pay significantly less<\/a> than out-of-state students. On average, out-of-state tuition is $26,382 while in-state tuition for the same degree is $9,212.

Keep in mind that this difference usually only applies to public colleges. Private schools usually charge the same rate regardless of where students lived before attending college.<\/p>\n\n\n\n

In-state tuition is more affordable because public education is subsidized by state taxes. Since state residents are taxed to pay for college, those who live in the state are already contributing more to the institution’s expenses. Meanwhile, those who live out of the state have to pay more since they haven’t put any tax money towards the school yet.<\/p>\n\n\n\n

If you’re interested in the savings associated with in-state tuition, the simplest option is to pick a school in your state. However, depending on your career plans, this isn’t always possible. Different states have different rules for qualifying for in-state tuition, but typically, you need to live there for 12 months before you start taking classes.<\/p>\n<\/details>\n\n\n\n

Is it cheaper to go to college abroad? How do I do it?<\/summary>\n

If you’d like to save money and still get a top-notch education, there are plenty of ways to do it. Studying abroad can cut your expenses dramatically. All you have to do is find the right country.

To begin, write out a list of some of the top countries you’d like to study in. Several highly rated universities provide deeply discounted tuition to everyone who enrolls, including those from the United States. Some noteworthy places of interest include<\/a>:<\/p>\n\n\n\n