37 Ideas to Control or Reduce College Costs

Over and above the rise in consumer prices, the cost of a college education in the last decade has risen by 2.4% per year at private four-year schools, and 5.2% per year at public four-year schools, according to College Board's Annual Survey of Colleges.  As a result, the gross cost of tuition, room and board at a private four-year college has outpaced inflation by 30%, and at a public four-year college, prices have outpaced inflation by 75%.  How can you bring the net cost of a college education down?

This brief article will give you an overview of a number of ways that families can potentially attain a lower education cost for their children.  As you read, consider the following:

1. I do not necessarily endorse any or all of these ideas for you specifically.
2. Your individual situation may make some of these ideas inappropriate for you - consult a specialist regarding strategies that are right for you.
3. I am not a licensed financial adviser, I am a college adviser; if appropriate, consult your financial adviser for more details regarding how some of these ideas might work for you.
4. Each point listed can be a topic in and of itself.  I have purposefully only given you the "what" and not the "why" behind each strategy.  The context of the "why" can only be given when there is a better understanding of your individual situation.

Below, I have listed a variety of options to consider when attempting to control the cost of college.

1. Have your student apply themselves and attain the highest GPA possible.  Maintain this focus through the second semester of their senior year. 
2. Have your student study for and achieve the best possible PSAT exam score.  There are a variety of online courses becoming available for this purpose.  Excellent exam results may result in National Merit Scholarship money at select schools.
3. Have your student study for (including prep classes) and achieve the best possible SAT and ACT scores they can.
4. Student should build a competitive high school transcript which includes challenging courses and depth in extracurricular activities.
5. Achieving a "3" or higher on advanced placement (AP) credit, may transfer to offset college credit.
6. Student should participate in volunteer activities, leadership opportunities and pursue internships with companies in their desired field of study.
7. Consider "dual enrollment," if available.  Student takes college courses while in high school.  Often, these courses only transfer to specific colleges near the high school.  Courses are typically offered at a big discount to high school students.  Check with high school counselor for availability.
8. Student should start looking into scholarship opportunities during their junior year of high school.  Regularly seek out and apply for scholarships until the bachelors degree is obtained (and beyond, if additional degrees are desired).  Sites to visit include Zinch.com, Fastweb.com, ScholarshipPoints.com, Scholarships.com, Cappex.com, StudentScholarships.org, SuperCollege.com, ScholarshipExperts.com and NextStudent.com.
9. Spend time on the college search and selection process.  Consider engaging outside help.  It takes the average student 5 years to earn their degree, because 1 in 3 students transfer schools. Pick the right school the first time.  Achieving a degree in 4 years can save up to 20% of the cost of the typical college graduate today.
10. Where possible, establish and regularly contribute to a 529 college savings plan in the parents' names.  529 Info Link
11. If grandparents establish a savings plan or gifts for the student, funds are best kept in the grandparents' or the parents' name.
12. Families should complete the FAFSA form each year on time, for each student enrolled in college, regardless of family income.  FAFSA typically needs to be filled out prior to other financial aid consideration by a school.  FAFSA link
13. For purposes of FAFSA, CSS Profile and Consensus (Section 568), families MAY consider moving non retirement-related assets, to possibly qualify for more financial aid by lowering their expected family contribution.  Timing is important.
14. For those schools that apply, complete the CSS Profile each year, in addition to filling out FAFSA. CSS Profile link
15. For those schools that apply, complete the Consensus process (Section 568) in addition to FAFSA.
16. For those schools that apply, complete all requested individual financial verification forms.
17. For purposes of FAFSA, CSS Profile and Section 568, family MAY consider moving student assets to parents.  Timing is important.
18. Discuss a realistic budget upfront, to define the scope of schools to consider.  Many families consider this too late, and overextend.
19. Apply to "best value" schools.
20. Apply to a number of schools to be able to compare net cost offers.
21. If transferring schools to reduce cost, make sure to discuss how your credits would transfer to the new school with an academic adviser after you are accepted and before you decide to attend.
22. Introduce yourself to the financial aid office at each college you visit.  Have the school explain the opportunities for aid. 
23. Consider having student live at home while attending school.
24. Purchase used textbooks, or rent textbooks.  Sites to visit include Chegg.com, Bkstr.com, Bigwords.com, Campusbooks.com, Amazon.com and BarnesandNoble.com.
25. Look in to the options available for work study and coop programs at prospective colleges.
26. When enrolled in college, form a relationship quickly with your academic adviser.  If considering changing majors, map out the plan for finishing your degree on-time with your adviser. 
27. Parents and students should look into benefits of the student taking out a Stafford loan and if the loan makes sense based on the family's college financial plan. Have a realistic goal for total student and parent debt at graduation. Stafford Loan Info link
28. Do you qualify for a Pell grant? Pell Grant Info link
29. Do you qualify for a MAP grant (Illinois)? MAP Grant Info link
30. Not an option for everyone, but families sometimes consider a cash-out refinancing of their home to help offset the cost of college.
31. Consider enlisting in the military service, or applying for a ROTC scholarship.
32. Attend a community college, and then transfer to a four-year school.  Understand how your credits transfer by discussing with the four-year school's academic adviser after being accepted and before deciding to attend.
33. Consider in-state public schools.  Compare net costs to other schools before agreeing to attend.  This option is not always the best option.
34. Pay at least $4,000 of the bill for tuition, fees, and books from an ordinary checking, savings, or taxable investment account -- even if you have money specifically earmarked for this purpose in a 529 college savings account, advises Kal Chany, author of "Paying for College Without Going Broke." That way you can claim the American Opportunity Tax Credit, worth up to $2,500, on your 2012 return (to qualify, your income must be below $180,000) - See more at: http://money.cnn.com/2012/03/27/pf/college/tuition-costs.moneymag/index.htm#sthash.C2FM3dnF.dpuf
    For students already enrolled in college and if the parents make less than $180,00 annually, or $80,000 individually, pay at least $4,000 of the bill for tuition, books and fees from a regular savings, checking or taxable investment account, to claim the American Opportunity Tax Credit, worth up to $2,500 annually.  American Opportunity Tax Credit link
35. Parents who earn less than $124,00 annually ($62,000 for individuals) can deduct up to $2,000 in college loan interest from their taxable income through the Lifetime Learning Credit.  Lifetime Learning Credit link
36. The tuition and fees deduction is available if the couple's MAGI (maximum adjusted gross income) is less than $130,000, or $65,000 for individuals.  The credit is up to $4,000.  Tuition and Fees Credit link
    
    Pay at least $4,000 of the bill for tuition, fees, and books from an ordinary checking, savings, or taxable investment account -- even if you have money specifically earmarked for this purpose in a 529 college savings account, advises Kal Chany, author of "Paying for College Without Going Broke." That way you can claim the American Opportunity Tax Credit, worth up to $2,500, on your 2012 return (to qualify, your income must be below $180,000) - See more at: http://money.cnn.com/2012/03/27/pf/college/tuition-costs.moneymag/index.htm#sthash.C2FM3dnF.dpuf
37. Know that there are a handful of schools that offers three-year degree programs. Do your research and see if they are a "fit" for the student.