5 Tips for Saving on College

Let’s face it. College tuition can be expensive. If you think about it in real terms, the annual cost of attending some colleges can equate to purchasing a new car each year. It seems absurd, right? Like many others, you might be wondering “How am I ever going to pay for college” and “Is there anything that I can do to lower my costs?” As a college graduate, current graduate student, and high school teacher, I’ve learned a few tricks on how to save on college:

• Consider attending a community college first and transferring after two years. Some states, such as Virginia and California, offer guaranteed admissions to certain four-year institution of higher education for students who complete two years at a community college. You can get your prerequisite classes out of the way and save yourself quite a lot of money in the process. Additionally, SAT and ACT scores aren’t required to get into community college – another money-saving perk. Taking a path like this is a great way to prevent you from borrowing more money than needed.

• Just because you are awarded a sum of money doesn’t mean that you have to borrow all of it. Look at your finances, your tuition/school costs, and borrow only what you need. If you want to accept less than what you were offered, let your school know ASAP because borrowing more than you need will cost you extra in the long run.

• There is a lot of free money out there. That’s right. I said FREE money; so go find it! You can get it in the form of a scholarship – a sum of money awarded to students to help pay for school. Scholarships are different than loans in that they do not need to be paid back; they are completely free. So, look into applying for scholarships before borrowing a loan. There are thousands of scholarships out there. Scholarships come in all forms – large, small, national, local, etc. On top of that, there are scholarships catered for people of certain ethnicities, locations, majors, religions, skills, along with many other classifications. Think of any topic, and there is probably a scholarship for it – the best homemade duct tape prom outfit, a scholarship for being tall, and a candy technology scholarship. So, my advice is: look into applying for scholarships before borrowing money. Check out College Board’s Scholarship Search to find scholarships that fit your individual characteristics.

• In order to reduce the amount of money that you need to borrow, consider getting a job while you attend school. You might even be able to find a part-time job somewhere – perhaps the school library or IT help desk – that allows you to study while you work. Additionally, there are federal and statewide work study programs that can help you earn money to help pay for college, reducing the amount you need to borrow.

• When borrowing loans, choose federal student loans over private student loans. If you receive a federal loan, it will have a fixed interest rate , whereas private loans may fluctuate. Moreover, federal loans offer many options for repayment, forbearance, and deferment. Learn more about the differences between federal and private loans.

It’s always a nice feeling to save money. So, make sure to explore all of the money-saving options available to you, and you might be able to alleviate some of your college expenses.  If you have any other questions or concerns about saving on college, visit StudentAid.gov.

SOURCE : http://www.ed.gov/blog/2013/07/5-tips-for-saving-on-college/