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Tips for Lowering the Cost of Higher Education
College tuition has increased at more than twice the rate of inflation over the past several decades, and student debt has increased dramatically, both in terms of number of students with loans and how much they borrow. Here are some strategies for lowering the cost of higher education and reducing student debt.
Start early
Set up college savings accounts for your children at a young age and watch them grow! And check out the Minnesota College Savings Plan, a qualified tuition program where earnings are tax-free while invested and tax exempt when withdrawn for qualified higher education expenses.
Do the right things in high school and leading up to postsecondary education:
- Take challenging courses required for college and to help you avoid costly remediation classes after high school
- Get college credit while in high school through PSEO/Advanced Placement
- Visit several campuses to help you make the right choice
- Pick a major as early as possible; transferring and/or changing majors after the second year adds cost. (program grids are found in the back of this publication)
Don't let "sticker shock" discourage you from applying to a school:
- Financial need is not limited to low-income families
- Figure out the "net price" (cost after aid)
- Try our financial aid estimator
- Many schools offer net price calculators (with varying degrees of complexity), e.g., Augsburg College and St. Cloud State University
Borrow responsibly:
- Use loan calculators to determine your monthly student loan payment
- Keep monthly payments at 8-10% of monthly income in your field (www.iseek.org has information about expected earnings)
- Apply for financial aid by filling out the FAFSA
- Apply for aid even if you think you won't be eligible
- Exhaust federal loan options before you consider private loans (federal loans may be eligible for forgiveness)
- Research private loans carefully
While in school, consider the following money-saving options:
- Live at home
- Start at a 2-year college
- Buy used textbooks whenever possible
- Live like a student
- Don't work too much (sometimes it makes more sense to take out a loan if it allows you to graduate sooner)
- Carry a full load of credits as much as possible
- Attend summer school to get ahead
- Consult academic advisors for advice
For much more information on preparing and paying for college, visit getreadyforcollege.org
