3 Tips for Cutting College Costs
These tips for parents involve cutting college costs and still investing in retirement savings, from Marc R. Hill, a financial planner by training.
“If you’re the parent of a high school student you may soon be faced with a very tough decision,” says Hill. “Should you continue funding your retirement plan, or help pay for your child’s college education?”
Here, he offers three considerations for cutting college education costs and saving for retirement. For more info, click on College Cost Cutting Tips: Get Your Degree Cheaper and Quicker Than You Ever Thought Possible by Larry Slater.
3 Tips for Cutting College Costs
Many parents need help paying for college expenses, and turn to the financial aid system. While you may be uncertain about prioritizing retirement contributions versus college expenses, the financial aid system is quite clear about how they view your retirement contributions. According to “the system”, money contributions can be used to help pay for your child’s education, and you can play “catch up” with your retirement at a later point.
For more info on retiring, read 8 Tips for Increasing Your Retirement Income. And for help letting go of your college student, read Tips for Surviving College for Parents of New Students.
Here are three ways to shave your out-of-pocket college expenses and keep your retirement contributions flowing.
1. Understand Financial Aid at College
Understanding how each college packages financial aid is an essential part of receiving the “best” financial aid package. Many universities are required to include a minimum amount of self-help aid before any grant or gifted (free) money is awarded. Self-help aid includes interest-subsidized or unsubsidized loans and work study programs that must be repaid through financial obligation or service to the school or state.
So, what’s the best strategy for cutting college costs? Applying to schools that historically award a higher percentage of grants or gifted money and a lower “self-help level” can stretch your educational dollars.
2. Understand the “Ideal Student”
To cut college costs, apply to schools that are “looking” for your student. Post-secondary institutions attempt to meet enrollment goals by giving better financial aid packages to students that they feel offer the ”best fit” for their school. Understanding what your selected institutions are looking for and matching your needs to theirs, can improve your chances of receiving a generous package.
A good starting point would be to apply to schools where your child academically is in the top 15-25% (SAT, ACT, Subject Tests, G.P.A) of the incoming freshman class. This information can be found by doing a word search on the prospective school’s website for the phrase, “Freshman Class Profile.”
And if your child is a good “match,” never underestimate the power of a phone call. Establishing relationships with alumni, admissions, financial aid and academic personnel prior to formal application can go a long way in reducing out of pocket expenses.
3. Apply Early, Think About Scholarships
Colleges are often under pressure to meet early deadlines for enrollment goals. To help meet their goals, some institutions will award merit scholarships to students who apply early in their senior year. This is one of the easiest ways to cut college costs. So, get busy filling out college applications as soon as your child starts his or her senior year!
And, to ensure college success, read Tips for Student Success in College.
Marc R. Hill, a financial planner by training, is a publisher and coach who helps families discover ways to dramatically cut college costs while protecting retirement accounts. Visit him at ReduceMyCollegeCosts.com.
If you have any questions, comments, or tips for cutting college tuition costs – please share below!
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