Saving on College Tuition

While tuition and fees have risen over the lastof all Hispanic students. Hispanic and Black students
decade at all types of colleges and universities, theseare actually gravitating more toward two-year
costs have gone up the least at two-year schools,schools, with Hispanic and Black enrollment up at
according to a recent report by the U.S. Governmenttwo-year schools but on the decline at four-year
Accountability Office.public colleges.
The GAO report also shows certain groupsIn-State Schools Could Cut 30% Off Your Tuition
of students shifting toward these lower-tuitionCosts
two-year schools from four-year schools.Besides cutting your first two years of college
If you’re headed to college, a two-year orexpenses by attending a community college, you
in-state option could help you minimize your collegecould continue to save and minimize your need for
costs.student loans by choosing an in-state public college or
Average Debt From Student Loans up Almostuniversity for your final two years and taking
$10,000 Over 10 Yearsadvantage of in-state tuition rates.
For the past 10 years, student debt has beenThe College Board shows out-of-state tuition and
persistently on the rise, with student loan debt infees at four-year public institutions averaging almost
particular continuing to steepen. According to a series$16,000 a year, compared to the $6,000 annual
of reports by the Making Opportunity Affordableaverage for in-state tuition and fees — that
project, the average student borrower at a publicmeans that by choosing an in-state school, you could
college or university today owes $17,250 in studentsave an average of $10,000 a year in tuition and
loans; 10 years ago, the average borrower attendingfees alone.
a public institution graduated owing just $8,000 inScholarships: FREE Money for School
student loans, after adjusting for inflation.Wherever you choose to go, make it a point to
If you want to buck the trend and graduate with asdedicate a significant amount of time to searching for
little debt as possible, you may be able to minimizescholarships and grants. There are millions of dollars in
your need for student loans by keeping your tuitionscholarships and grants available each year, both with
costs low with a two-year school.and without regard to your financial situation, and
More Students Choosing Affordable College Optionsthese awards are money that you’ll never
The GAO report reveals that the majority of currenthave to pay back. You can often use scholarships to
college students attend institutions that have thereduce your need for federal or private student
lowest average tuition and fees.loans.
Nearly half of all college students in 2006–07Online scholarship databases can help you in your
attended institutions where the average in-statescholarship search, especially if you’re not
tuition and fees were less than $2,550 a year. Threequite sure where to start. The NextStudent
out of five students attended institutions whereScholarship Search Engine, for instance, lists over 5.9
annual tuition and fees were less than $5,000.million individually awarded scholarships worth over
Only 3% of students attended schools where tuition$16 billion, and is completely free to use.
and fees exceeded $25,000 a year.Federal Financial Aid
Community College: Two Years of Big SavingsWhen scholarships don’t cover all your college
By attending a community college for your first twotuition costs, make sure you look into all your
years of school, you could save, on average,available federal financial aid options. In order to
anywhere from $3,000 to $19,000 a year in tuitionqualify for need-based financial aid like federal Pell
and fees.grants, work-study, and low-interest Perkins student
The College Board, in its 2006 Trends in Collegeloans and subsidized Stafford student loans,
Pricing report, shows tuition and fees at publicyou’ll need to submit your Free Application for
two-year schools averaging a little less than $3,000 aFederal Student Aid (FAFSA) each year.
year. Annual tuition and fees at public four-yearEven if you don’t qualify for need-based aid,
institutions, on the other hand, average almostthere are low-interest non–need-based federal
$6,000 a year for in-state students; at privatecollege loans, such as unsubsidized Stafford student
four-year institutions, average tuition and fees areloans and fixed-rate PLUS loans for parents of
more than $22,000 a year.Âundergraduates.
When you transfer from a two-year school to aPrivate Student Loans
four-year school, you can still graduate with a diplomaIf your education-related costs exceed your available
from the four-year school where you choose togrants, scholarships, and federal student loans, you
finish up your last two years of study, butmay still be able to get the additional financial aid you
you’d only have to pay two years’need from non–need-based private student
worth of four-year-school tuition.loans.
A significant percentage of students are choosing thisBut remember: Federal student loans generally offer
two-year option. According to the GAO, 43 percentmore attractive terms than private student loans, so
of non-Hispanic White students are enrolled inyou should always look into your federal financing
two-year schools, as are 50 percent of Black andoptions first.
Asian/Pacific Islander students and nearly 60 percent