Student Loans: What are ways to lower the cost of college?

Student Loans: What are ways to lower the cost of college?

HASs the price of higher education has gotten more and more expensive each year to the point of having increased more than to what the cost was 20 years ago, many continue to look for ways to lower the cost of their college education expenses, with experts estimating that a student enrolling in 2022 will spend about $500,000 to earn a bachelor’s degree and many Americans can’t afford that expense.

According to the Education Data Initiative the average price for college in the United States is at approximately $35,000 per student per year, which includes tuition, supplies and the cost of living.

As this trend continues many continue to look for ways to save money on their college education.

The 529 College Savings Plan

A 529 College Savings Plan allos an individual to save money in a tax advantageous savings account, where the money grows tax free.

This account also make education related expenses tax free, like paying for tuition, room and board.

Family members and friends can contribute to a 529 plan, making the money grow.

Scholarships and Grants are a way to save

Financial aid that doesn’t have to be repaid are also available in the form of scholarships and grants.

During the 2019-2020 period prospective college students received $7,626 in average, which covered around 25% of their expenses.

This financial aid is widely available and students must research to see which one suits them better and which ones they qualify for.

Enroll in a work-study program

Federally funded work-study programs that provide part-time jobs for eligible students are available, with the money earned through those programs being able to cover the cost of tuition, books, fees and any other related expenses.

The first step is to complete the free application process for Federal Student Aid or FAFSA and once your college grants the student the financial aid, they’ll be able to apply for the work-study positions available.

Payment Plans are also an option

Payment plans are oftenly offered by colleges and universities so that students can spread the cost of tuition and fees over the course of the semester or academic year.

They typically have a small down payment and monthly payments that are more suitable for a lower income student, but interest are usually charged on the upaid balance so it’s imperative to know all the information before signing up for one.

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