A notable paradigm shift is taking place: this year, a whopping 98% of current students are actively engaging in ways to make their education more affordable. How-America-Pays-for-College
Here are the top five ways students and their families prepare for the expenses of further education.
1. Save early and save often.
Recent research has shown a link between savings and college success: kids from low- and moderate-income (LMI) households with college savings between $1 and $499 are 3x more likely to attend college and 4x more likely to graduate.
2. Have a plan.
Only two in five of Sallie Mae’s respondent families created a plan to pay for college, but they were able to save 3.5 times more and borrow one-third less than non-planners. America Saves can help you make a plan to save for an education. Pledge to save and you will receive monthly reminders to save and specific advice to help you save more and pay less for college. Also see 529 Savings Tool.
3. Have a realistic approach to this financial endeavor.
Academic programs and financial details often take a back seat to personal choices, but considerations like in-state vs. out-of-state, scholarship opportunities, and work-study programs can mean the difference between college being affordable, or not. An honest assessment of a school’s programs and financial opportunities could knock a personal “want” off the list entirely. Use college scorecard to compare schools across the country.
4. Limit spending when ever and where ever possible.
Did you know that the average price of a new textbook has increased by nearly 30% since 2009? Whether you’re looking at room and board, books and supplies, or personal spending, there’s always a way to lower costs. Many students are choosing to live at home to reduce housing costs, while others opt for a track to get their degrees completed faster. Less Traditional (and Less Costly) College Options. Photo: https://www.dreamstime.com/photos-images/wants-versus-needs.html
5. Go after a reduced cost of education, APPLY.
“Free money” is available in the form of scholarships and grants. There are a range of scholarships related to demographics and to characteristics like academic, athletic, and artistic. Find out more at your guidance counselor’s office or online. And by completing the FAFSA, you’ll receive information about any grants you or your child qualifies for.
Tammy G. Bruzon works for America Saves, managed by the nonprofit Consumer Federation of America (CFA), which seeks to motivate, encourage, and support low- to moderate-income households to save money, reduce debt, and build wealth. Learn more at america saves.
The Personal Investment Enterprise Program, a partnership between Foothills United Way and Boulder County Community Action Programs provides tools that empower low-income individuals and families to save and build assets to strengthen their economic stability. To learn more about the program visit bouldercountypie.org. The first step in applying to the program is to attend an orientation meeting with Nino Gallo at Community Action Programs at Boulder County. Nino may be reached at 303-441-3998 or at [email protected]
Resources on Saving for and Pursuing Further Education
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how-to-save-for-college Video
college-financial-aid Video
calculate-saving-for-college Video
