Tips for Sending Your Kids to College Without Going Broke

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Here’s some shocking news: The price of college tuition is not getting any cheaper.
OK, that may not be so surprising, but for those of you who are preparing to send your
high school students away to a university, this tidbit might be: Many financial analysts
predict that the cost of college will rise approximately 6% every annual school year. So,
being that the price tag of an in-state public university is currently averaging around
$22,000 (you can close to double it for a private institution), then you know that for each
year, you need to add about 6%.

It’s definitely something that can take your breath away, but it doesn’t have to seem
so consuming if you simply do some thorough financial planning ahead of time. If you’re
looking for some ways to find the gentle balance between sending your child off to
college without going broke, check out five effective tips below.

Try community college first. You know, there used to be a time
when community colleges carried a bit of an odd stigma to them. Basically, if you were
a student who didn’t have good enough grades to go to “a real school”, it was a suitable
compromise. These days, a lot of people are opting to get an associate’s degree and
one of the main reasons is because it’s a great way to save up some money so that you
can go to a “big school” later. Plus, if you complete your first two years there, the added
bonus is that you enter into a four-year institution as a junior rather than a freshman.

Start up a 529 college savings plan. Something that more and
more families are opting to do is start a 529 college savings plan. The benefits of having
one on the federal level is that it’s tax-free money that you can save up that doesn’t have
a 1099 attached to it until you make your first withdrawal (a withdrawal that only the
donor can make). On a state level, it’s really inconvenient because after you fill out your
enrollment form and start making deposits, the state treasurer office (or someone who
they contract out) manages the account for you.

Go to school in-state. Some students dream of moving away
to go to college, but that’s not always an affordable option. You definitely can save
thousands of dollars by having your child go to an in-state school. If you want to present
a compromise, perhaps suggest that if they get their undergraduate degree in-state,
you’ll be willing to send them somewhere else to get their master’s. Honestly, that might
be the best bet all the way around because it gives them time to mature and really figure
out what they want to do, so that their masters will be a viable investment.

Go to school online. There’s definitely a “yin and yang” with this
option. On one hand, it costs roughly between $700-900 to take a three-hour class.
This means that in order to get a four-year degree, it will probably cost you somewhere
around $30,000 (so, if you’re thinking about looking into some online MBA programs, start saving
up!). However, the other side to this is that you can save money when it comes to room
and board. It’s just something to think about.

Search for scholarships and grants. Here’s another obvious hint,
but the truth of the matter is that a lot of people don’t take it. We know this because there
are millions of dollars each year that are overlooked as it relates to scholarships and
grant funding. Sure, you can look for leads online and in books, but also don’t forget to

check with local non-profit organizations, your church, your child’s high school and even
your job. There tend to be scholarship monies available in all of these places if people
would just take the time to look (and ask and fill out the paperwork).