No matter how you plan to pay for college, it’s a good idea to learn about how you can prepare and make some choices that can reduce your costs. Check out our tips below, and then look at other options to help you pay for school in addition to traditional financial aid. These options include payment plans offered by your college, tuition help from your employer or a parent’s employer, and 529 savings plans available through your state. Some families also choose to use home equity loans or lines of credit through private lenders.
Reduce College Costs
Here are some tips to help you reduce college costs, no matter how you will be paying for college.
Plan ahead!
For example, there are things you can do in high school that will earn you college credit—and save you money once you get there!
- Take Advanced Placement (AP) courses and exams in high school to gain a semester or more of academic credit.
- The College Level Examination Program (CLEP) is another way to earn college credit. This program grants college credit for work experience and can be helpful for returning adult learners. Fewer required classes can mean lower college costs.
Consider college options that will cost you less!
- Choose a college that offers a four-year "locked-in" tuition rate. A guaranteed rate for four years may help you to plan more efficiently.
- Look for colleges that offer tuition reductions to alumni or siblings. If you have a sister or brother attending at the same time, the college may reduce your tuition and fees. The same may be true if you go to the same school as your parents or grandparents (legacy students).
- Colleges may offer reduced tuition during summer sessions. You can complete required courses at a lower cost than during the regular school year.
- Many colleges offer a “flat rate” tuition for full-time students. The more classes you can take in a semester (while still maintaining your GPA), gives you more bang for your buck!
- Accelerated degree programs let students finish a four-year degree in less time. These programs may also combine an undergraduate degree with a graduate degree in a reduced timeframe.
- Consider attending a community college for the first two years. This allows you to pay less for your “general education” credits. Then you can transfer to a four-year school for your last two years to focus on the degree program that interests you. Talk to a college counselor about these options.
Once you are in college, there are additional ways to reduce costs.
- Living at home and commuting to campus can help save money. Living in an off-campus apartment with roommates can help reduce college costs compared to living in a residence hall, especially if you can make and stick to a budget.
- Books can be a significant expense. Learn how you reduce the amount you pay for books by buying used, renting, sharing, and going digital.
Other Ways to Pay (or help pay) for College
Besides traditional financial aid, below are some other options to help you pay for school.
If you don’t have the resources to meet the full cost of attendance, working while in school could be a great solution. Whether you are a part-time or a full-time student, make sure you can balance both school and work before making the commitment. Some students may be eligible for Federal Work Study positions. But even if you are not eligible for Federal Work Study, look for other campus positions that might be available, as well as non-campus part-time employment.
If you're employed while in college, your employer may offer an employer tuition reimbursement plan. With these types of plans, your employer pays for part or all your tuition. They might even have tuition benefits for your dependents. These plans are available at some public and private organizations, as well as government entities. Each company’s policies are different. Contact your employer to learn more!
If you or your parents work at a college or university, the school may offer tuition benefits to employees and children of employees. Some colleges even offer free full-time tuition for the children of faculty and staff. You may need to complete an application and there could be processing fees, but in most cases, the savings are much greater than the cost. As with tuition reimbursement, tuition benefit programs vary from college to college.
In some cases, schools partner with other colleges, giving you more options for where you can go. Be sure to check with the human resource department or financial aid office at the institution for specific guidelines.
While military service may not be for everyone, it is a way to help pay for college. The U.S. Armed Forces, the State of Illinois, and the federal government offer many programs to help service members and veterans pay for higher education. Contact a local military recruiter or chain of command for more information.
Besides federal educational loans for students and parents, private loans are also available to borrowers. Private loans, (also known as alternative loans), come from private lenders and require their own applications.
Always apply for federal, state, and institutional aid before choosing private loans. You will want to make sure to apply for all the gift aid (like scholarships and grants) that you might be eligible for, since this is money that you don’t have to pay back. If you will need a loan, start with federal direct student loans, because they generally have the best repayment options and lower interest rates.
The amount you can borrow through private loans is usually based on your credit history and may require a co-signer. Learn more and read about the Illinois Student Empowerment Fund, which offers private loans with lower interest rates.
If your parents started a 529 Savings Plan or Purchased a 529 Prepaid Tuition Plan, you can use these funds to help pay for college.
Illinois’ Bright Start 529 Savings Plan allows parents to start saving for college early and get unique tax benefits. Funds can pay for tuition and other qualified education costs when a student starts school.
Illinois also had a prepaid tuition plan, called College Illinois!® that allowed parents to prepay for college tuition based on certain plan rates. While College Illinois! contracts are no longer available for purchase, those who purchased plans can still use them. The program continues to operate as usual for current contract holders, with no change in benefit payments, customer service, or plan administration. Learn more at collegeillinois.org.