Ways to spend less for College
Over the past two decades, tuition fees have skyrocketed, causing students to worry about accumulating too much debt by the time they graduate. Here are several options students can consider based on their individual circumstances.
In-State Tuition
- In-state tuition refers to the lower tuition rate that students pay to attend a public college or university within their own state. This reduced rate is possible because state governments subsidize public universities using tax dollars collected from state residents.
- Always opt for in-state tuition, especially for long study path degrees like Medical and Advanced Engineering programs, where a Master’s or PhD is often recommended
- In-state students may also benefit from additional financial aid and scholarships. In these instances, the scholarships provide coverage for accommodation, meals, supplies, and other necessities.
Scholarships
- Scholarships can generally be classified into four categories: Merit-Based, Need-Based, Athletics, and special attribute Scholarships
- A merit-based scholarship is a financial award given to a student based on their skills, talents, or other personal achievements. Many schools aiming to recruit top talent and build a strong alumni base offer scholarships to attract exceptional students. While these students may need to pay full tuition at their preferred colleges, they might receive scholarships from these emerging universities.
- A Need-based Scholarship is a financial aid award given to exceptional students primarily based on their demonstrated financial need, meaning the scholarship is designed to help students from lower-income backgrounds who require assistance to afford their education. Many top universities, especially those with substantial endowments, offer need-based scholarships to most of their applicants proportional to the financial need demonstrated in their application.
- An Athletic Scholarship is a financial award given to college or high school students who excel at a sport. Typically, students playing popular college sports receive these scholarships. However, it is usually the colleges that benefit the most from recruiting top sports talent through broadcast contracts, merchandise sales, and enhanced reputations.
- A Special Attributes Scholarship is awarded to students based on unique personal characteristics, talents, or experiences that go beyond merit or need, such as significant life events, Affinity group memberships, demographics. Special attribute scholarships are usually smaller in amount and designed to support as many students as possible. By applying for multiple scholarships, a student can accumulate a substantial amount of funding.
- Corporate scholarships are a type of scholarship offered by large corporations to many students based on merit or financial need.
- Full ride scholarships are special because they cover not only tuition but also other basic costs such as room and board, books, travel, and supplies.
Most scholarships are a combination of merit-based and need-based criteria
Grants
- The Pell Grant is a need-based federal student aid program designed to support undergraduates with exceptional financial need. For the 2024–2025 academic year, eligible students can receive up to $7,395 per year to help cover tuition, fees, and other educational expenses.
Military Service
- The GI Bill offers educational benefits to veterans, including scholarships and other programs. Veterans may also be eligible for other scholarships, such as the Georgia HERO Scholarship or the Pat Tillman Foundation’s Leadership Through Action program
- Reserve Officers’ Training Corps (ROTC) scholarships are merit-based awards that help pay for college and military service. They can cover tuition, fees, books, and living expenses. In exchange, students commit to serving in the military after completing the program.
Being in the military offers lifelong benefits, as many organizations prefer to hire veterans and have affinity groups dedicated to them. These groups provide veterans with opportunities for professional growth.
Academic Planning
- Accumulating transfer credits at a community college, then transfer to a four-year school and graduate in two years which saves two years of college costs.
- Accumulate credits via AP exams or dual enrollment classes so that you don’t have to take these courses again in college.
- Qualifying for National Merit Scholarship significantly increases your chances of receiving substantial scholarships from many colleges, which could essentially make your education nearly free at certain institutions, especially if you maintain a high GPA throughout your studies; essentially, it opens doors to significant financial aid packages at various universities.
Loans
- Federal Student Loans: These are loans provided by the federal government and include:
- Direct Subsidized Loans: For undergraduate students with financial need, where the government pays the interest while you’re in school.
- Direct Unsubsidized Loans: Available to both undergraduate and graduate students, without the need to demonstrate financial need, but interest accrues during all periods.
- Direct PLUS Loans: For graduate or professional students and parents of dependent undergraduate students to help cover education expenses not covered by other financial aid.
- Private Student Loans: These are loans offered by banks, credit unions, and other private lenders. They often require a co-signer and may have higher interest rates compared to federal loans.
- Institutional Loans: Some universities offer their own loan programs to students. These loans may have different terms and conditions compared to federal and private loans.
- State-Sponsored Loans: Some states offer their own student loan programs with terms and benefits that may vary from federal loans.
- Alternative Loans: These include loans from international lenders or non-bank financial institutions that may offer more flexible terms, especially for students without a co-signer.
Frugality
Living frugally can help you cut down on unnecessary expenses while still enjoying your college life. Here are some tips to live frugally
- Live Off-Campus: Sometimes living off-campus with roommates can be cheaper than on-campus housing. Compare the costs and choose the most affordable option.
- Use Student Discounts: Take advantage of student discounts on everything from software to transportation, entertainment, and more.
- Rent or Buy Used Textbooks: Instead of buying new textbooks, look for used ones or rent them from the university bookstore or online services like Chegg or Amazon.
- Use Free Resources: Many universities offer free resources, such as tutoring centers, writing labs, and health services, which can save you money on additional expenses.
- Cook at Home: Eating out frequently can add up quickly. Cooking your own meals can save you a lot of money.
- Take Advantage of Free social events: Many universities offer free or low-cost events, including movie nights, guest lectures, and fitness classes. These can provide entertainment without breaking the bank.
- Use Public Transportation: If your college town has a good public transportation system, use it instead of driving a car.
- Minimize Credit Card Use: Avoid high-interest debt by limiting your use of credit cards. If you must use them, pay off the balance in full each month.
Final Word
Minimize your expenses during your undergraduate studies, and aim to get into a fully funded master’s program or maintain the freedom to live debt-free. Keep in mind that early investments in life yield the highest returns for your retirement nest egg.
