College doesn’t have to break the bank—discover practical tips you and your family can use to plan, save, and reduce costs without sacrificing your future.
Sending a child off to college used to be a happy rite of passage for families in this country each fall. It was seen as a way to ensure your child was set up for potential success and a piece of the American Dream. Unfortunately, that dream has turned into an unaffordable and unattainable nightmare for students and families all across the country. Many students are graduating with significant student loan debt, and young adults are having to make tough choices in regards to their future. Fortunately, all hope is not lost. With the proper planning and by making some tough choices, you can work to ensure that the college experience is affordable to the greatest extent possible.
College is now Unaffordable for Many Families
Families are facing the reality that college may be unaffordable for them without the use of significant student loans. In fact, the average cost of college has more than doubled since 2000, with tuition rising at 4.04% each year. In 2024-25, the average published tuition and fees for full-time undergraduates are:
- Public four-year in-state: $11,610
- Public four-year out-of-state: $30,780
- Private nonprofit four-year: $43,350
When looking at total costs of attendance (which includes tuition, fees, books, and living expenses) for an in-state student at a public 4-year school living on campus, the average cost is $27,146 per year. For a student at a private, nonprofit university, it’s $58,628 per year. These numbers show that for the average family, affording college without student loans is extremely difficult, if not impossible.
Planning Ahead is Key
One of the keys to college affordability is to begin thinking about it as early as possible in your child’s life. The best way to start is by starting a 529 plan, which is one of the most powerful tools for saving for future education expenses. The primary advantage of a 529 plan is that contributions to the account are tax-free and withdrawals are tax-free when used for qualified education expenses like tuition, fees, room and board, and textbooks. 529 plans are also flexible, offering a range of investment options and allowing you to change beneficiaries if needed. Starting a 529 plan early can take advantage of compound growth, making college more affordable and reducing the burden of student loan debt in the future for your kids.
If you are nearing the end of their secondary education and a 529 plan isn’t feasible for you, there are still ways to make a college education affordable.
Choosing the Right School
Although many young people see the bright lights of NCAA Football or March Madness and want to attend a popular college or a highly selective out-of-state school, that is often not the best way to proceed. Many students today are making the prudent choice to begin their college education at their local community college. Beginning at a community college has many benefits, including:
- The average community college costs less than $4,000 annually to attend, which is much less than four-year colleges.
- Allows students to complete their first two years of college and their general education requirements for the lowest possible cost.
- Enables them to transfer to their college of choice after receiving their associate degree, saving them money versus attending a four-year college right away.
Additionally, when evaluating college options, it is important to wait until you have received your financial aid award letter before making a decision on where to attend. Each college should be heavily scrutinized based on the amount of financial aid, excluding student loans, that they are offering you to attend their school. Even if it is not the first, second, or even third choice that offers the most money, it is imperative that you and your family take into consideration how affordable a school is, based on your award letter and how much merit-based aid it offers.
Other things to consider when choosing a college include:
- Smaller private colleges tend to offer more merit and need-based aid than public schools
- Many states have begun offering free or reduced tuition programs to in-state students
Scholarships
Another avenue to ensure affordability is by applying for and receiving scholarships. Although the process for achieving a scholarship can be hard, you must be focused and intentional in your search. There are many ways to locate scholarships that could be right for you, including:
- Searching local Community Foundations and businesses for scholarships.
- Using the scholarship portals or websites provided by the schools you were accepted to.
- Signing up for 3rd party scholarship search sites (think Fastweb).
The most important things in your scholarship search is to ensure you have a solid plan of action, that you remain organized (use a spreadsheet to track applications), and that you are casting as wide a net as possible by applying for any and all scholarships that you are eligible for.
There are no easy answers for families that are seeking a financially prudent path forward to afford college, but with a solid plan of action, hard work, and directly facing several tough realities, college can be affordable and enjoyable for your family.
