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Have you found yourself in a position where you need to start paying for college, but you don’t have any money saved? Unfortunately, this is a norm for many Americans struggling to make ends meet. Luckily, there is a way to significantly reduce your college expenses to allow you to pay for college without going deep into debt!
However, the typical route in this situation is to apply for student loans and rack up tens of thousands of dollars in student loan debt. The debt stretches out over 30+ years, and these loans forever haunt us throughout adulthood.
The Student Loan Crisis
Here is a scary statistic: according to the US Department of Education, Americans owe 1.6 trillion dollars in student loans as of 2021. With that astronomical number, it’s no wonder we now consider huge student loan debt to be the “norm.”
It seems the problem is only going to get worse. Many Americans stick their heads in the sand and ignore the issues associated with student loan debt. Debt has become such a normal part of our lives that many of us feel there is no other alternative than to live with it.
Debt Is The New “Normal”
This “normal” is taught to us throughout our early years and by the lenders. First, we need a college degree that we can’t afford to move forward in this world. Then, after we get the degree, we get a job so we can buy things to impress people we don’t like.
Normal seems pretty depressing.
In addition, we are enticed by gimmicks that encourage us to go further into debt. For example, have you heard of the Public Service Loan Forgiveness Program? My husband works for a police department and knows several officers enticed by this program. This federal program grants loan forgiveness to government employees, a 501(c)(3), or other nonprofits that provide qualifying public service as its primary purpose.
Many public school teachers take out loans and expect this program to erase their student loan debt after ten years of public service. Now for a bit of a reality check.
According to the Education Data Initiative, the most recent reports of the Public Service Loan Forgiveness statistics are from April, May, and June of 2021. The data published states:
June 2021:
Claims Approved: 4,848
Claims Denied: 241,910
Loan Forgiveness Approval Rate: 2%
May 2021:
Claims Approved: 4,214
Claims Denied: 270,002
Loan Forgiveness Approval Rate: 1.6%
April 2021:
Claims Approved: 3,458
Claims Denied: 241,910
Loan Forgiveness Approval Rate: 1.4%
There are so many hoops to jump through for this program that most people who thought they qualified for loan forgiveness do not. The fine print in the program has prevented most people from seeking forgiveness to get the help they thought was coming their way.
How Much Does Tuition Actually Cost?
Let’s look at the current average tuition rates of some local universities to see how much you can expect to pay for in-state tuition and fees – not including room and board:
- University of Southern California – $60,275 per year
- University of Chicago $60,552 per year
- Harvard University $54,002 per year
- Stanford University $56,169 per year
- University of Notre Dame $57,669 per year
- Arizona State University $11,338 per year
- Ohio State University $11,518 per year
- Texas A&M University $12,783 per year
- Florida State University $5,656 per year
- Michigan State University $14,460 per year
- University Of California Los Angeles $13,249 per year
*statistics current as of April 2022
As you can see from the above list, you can expect to pay anywhere from $5,656 a year to $60,552 each year for a 4-year degree at a university. Keep in mind that these are all in-state tuition rates. If you are attending from out of state, expect to pay about 3x these amounts.
These rates also do not include room and board or meal plans. You can see how easy it is to owe $100,000 or more in student loans upon graduation.
How We Saved A TON Of Money On Tuition
Now that I have given you all the doom and gloom statistics let’s look at an alternative. This is the route my husband took to get his degrees, and it’s one that saved my family a TON of money!
My husband attended a community college for two years and completed all his prerequisites out of high school. He met with a counselor and made sure that every class he took could transfer to a university. As a result, most of his classes transferred over upon graduation from the community college, and he only had to pay for two years of university tuition.
The Cost Of Community College
According to the Education Data Initiative, the average yearly cost of tuition and fees for a community college in the United States is only $3,400.
My husband attended Glendale Community College for his first two years to save money. In 2022, the tuition for 30 credits a year at Glendale Community College is $2,550. By going to a community college, he saved himself at least $14,900 in education expenses than if he had attended a university for $10,000 a year.
After two years at the community college, he transferred to Northern Arizona University (NAU). The tuition per year at NAU is $11,896. By going the community college route, he was able to get a four-year Bachelor’s degree for $28,892 (in today’s dollars) versus $47,584. His degree has one name on it – Northern Arizona University – even though he only studied there for two years.
Does A Name Really Matter?
Before you argue with me about the value of a degree from USC or another prestigious college, can you tell me the name of the school your doctor or surgeon attended? I’ll bet you can’t. You don’t know which university your doctor, surgeon, dentist, anesthesiologist, or other high-paid professional attended because it doesn’t matter.
You value your doctor for reasons other than what school they attended. Bedside manners, knowledge, and communication skills attract you to them, not that piece of paper on the wall. For this very reason, I do agree that college is important, but putting yourself into $100,000 worth of debt is a terrible route to take.
With all things being equal, if you don’t have a scholarship for a considerably reduced tuition rate, the community college path is the route to take. However, after you finish two years at the community college, this is not the time to transfer to the highest-priced private university in your area either. Instead, select a reasonably priced accredited public university for a good education.
You Still Need A Budget To Be Successful
You still need to budget your money to afford a college degree using my community college method. If you start with a community college, the average tuition is $3,347 a year. That comes out to $279 a month. About half the price of your average car payment!
If you later attend a University for an average of $9,970 a year, that would be $831 a month. The $831 may be a little steep for you, so let’s break it down differently.
If the first two years are only $279 a month, try to save $500. If you do this for two years, you would have saved $5,304 extra by the time you had to start paying for the university! ($500- $279 tuition = $221 extra each month x 24 months = $5,304)
If you use my above methodology, there is no way to rack up tons of student loan debt.
If you’re looking to increase your monthly cash flow, it may be time to start a side hustle.
More importantly, paying for college with cash is possible if you avoid the expensive university trap.
Other Great Ways To Save Money On Tuition
Here are some other great ways to reduce your college tuition expenses:
- Apply for FAFSA – Free Application for Federal Student Aid
- Apply for the Pell Grant
- If you’re thinking about the military, look into an ROTC scholarship
- Go to Scholarships.com and make filling out scholarships a full-time job
- Check out The Scholarship Lady, who specializes in connecting you to scholarship opportunities
- Many Fortune 500 companies provide scholarships to students here
- Several large banks provide scholarships as well. Check them out here
- Fastweb, moolahSPOT, Scholly, Cappex, Chegg, Niche, and Scholarship Monkey connect people to scholarship money
- Check your state for local grants here
- Check with your current employer. I was surprised to find out that the local restaurant I worked at paid $500 a year for college tuition. Often employers will help pay for college if you look at your benefits package.
Avoid Student Loan Debt Like The Plague
Wherever you are in life right now, decide to do everything to avoid going into debt for a college degree. It certainly is possible to cash flow a college degree if you plan for it and do your research. Remember that the university’s name does not mean as much as you think it does.
If you currently have significant student loan debt, refinancing may be worth looking into.
Refinancing may save you thousands of dollars in the long run, depending on the balance of your loans and your interest rate. However, remember that refinancing usually comes with fees added to the loan, so make sure refinancing is worth it.
For more information on refinancing, check with a reputable company like Credible or Lending Tree.
I encourage you to think outside the box when it comes to college. The mainstream way of thinking will lead you down a dark path of debt and regret. Instead, look for other ways to receive a college education without paying for it for the rest of your life.
