10 Ways to Reduce College Costs and Avoid Debt That Can Take Years to Pay Off

College costs are on the rise and show no signs ofmethodology used in computing your EFC takes into
slowing their climb. According to the College Board'saccount the age of the oldest parent. As the eldest
"Trends in College Pricing" the average annual cost forparent matures, your EFC should decrease. Therefore,
in-state tuition ranges from $17,336 for public institutionsif the eldest parent has a birthday in January of the
to a whopping $35,374 for private universities. Addingyear in which FAFSA application is submitted, you may
insult to injury, college expenses are typically paid withwant to consider signing the financial aid application on
after-tax dollars, which means that if you're in the 28the day of or after your birthday. This may reduce
percent tax bracket, you need to make $24,075 toyour EFC and could lead to a reduction in your total
pay a public institution's $17,336 tuition.costs. And, make sure you get your financial aid
With numbers like these, many parents are on theapplications in correctly and by the schools priority
verge of panic about college. They've watched theirdeadline, if not sooner.
education savings vanish in our nation's battered7. Understanding how each prospective institution
economy and, as scholarships and grants dwindle, theypackages their financial aid is an essential part of
find themselves struggling to figure out a way to payreceiving the "best" financial aid package. Many
for college. In this pressure-filled environment, mostuniversities are required to include a minimum amount
families end up taking on unhealthy levels of debt -of self-help aid before any grant or gifted (free)
debt that can take years to pay off.money is awarded. Self-help aid includes
Despite the bad news, the good news is that familiesinterest-subsidized or unsubsidized loans and
can still play the college financial aid game and win ifwork-study programs that must be repaid through
they employ some smart strategies.financial obligation or service to the school or state. So,
10 Ways Parents Can Cut College Costs Now Forwhat's the best strategy for big savings? Applying to
Their Senior High School Studentschools that historically award a higher percentage of
1. Apply early in your senior year – which meansgrants or gifted money and a lower "self-help level"
apply now! Colleges go under extreme amounts ofcan stretch your educational dollars.
pressure to meet early deadlines for enrollment goals.8. Apply to schools that are "looking" for your student.
To help meet their goals, some institutions will awardPost-secondary institutions attempt to meet enrollment
merit scholarships to students who apply early in theirgoals by giving better financial aid packages to
senior year. This is one of the easiest ways to reducestudents that they feel offer the "best fit" for their
the cost your family pays out of pocket for college. Soschool. Understanding what your selected institutions
get busy filling out college applications now.are looking for and matching your needs to theirs, can
2. Be proactive on your appeal strategy. Keep in mindimprove your chances of receiving a generous
that once you receive your award letter most of thepackage. A good starting point would be to go to the
financial aid has been assigned. Therefore, it mayschools website, enter the phrase "Freshman Class
make sense to notify your financial aid office ofProfile" into the search box. Click the search button
special circumstances that you feel warrantand let the Internet do its magic. And if your child is a
consideration. Do this immediately after you have filedgood "match," never underestimate the power of a
your financial aid applications and prior to receivingfew phone calls. Establishing relationships with the
award letters. Make sure that your appeal is basedadmissions, financial aid, academic personnel and area
upon real circumstances such as a loss of job, disabilityalumni representative prior to formal application can go
and inflated income due to bonus that will not bea long way in reducing out of pocket expenses.
received this year.9. Understand the demographics of the Freshman
3. Have your child enroll for a 2-year program firstClass Profile. If your daughter wants to major in an
and then have them transfer to his or her desiredarea that is typically dominated by males and she is in
school. This will help you reduce your college costs, butthe top 20-25% of the incoming freshman class, the
you must make sure that your child's credits arecollege could be more willing to reach out to her with
transferable. Additionally, be aware that some schoolsan award package that consists of more institutional
limit financial aid packages to transfer students.money vs. an award package loaded up with loans.
Planning is the key! 10. Get a handle on the geographic regions that the
4. Understand that most university placement examsmajority of the incoming freshman class is from. You
don't lead to college credits. In other words, acan to use this to your economic advantage. Let's say
placement examination merely transfers a student outyour daughter is from a small city in the west like
of a particular class. The original graduation creditEstes Park, CO. She has her heart set on pursuing a
requirements still apply and, thus, so do the associatedmale dominated major, like engineering, at a school
costs. On the other hand, incorporating successful APlocated in the New York area. Chances are that
or AP alternative testing, reduces graduation creditsschool can get as many students from the New York
and college costs. So be sure and check with yourarea as they want, but they may not be able to get
considered universities as to their acceptance of thesethat many from Estes Park, CO. Your daughter may
credits and devise a plan that can help you improvebe able to add some much needed "diversity" to the
your college financial experience. student population and the college may be willing to
5. Don't fall into the "there is only one right college forpay for that diversity.
my child" trap! This costly mindset means that you limitFailing to follow the tips in this article and in my
yourself to that particular university's financial aidnewsletter at will unnecessarily cause you to pay full
resources and you completely eliminate the use ofprice for your child's education. But if you take this
competing award letters. A good college explorationpeek into the future of college costs and combine it
process will produce many "right colleges" to consider,with the ideas mentioned above, you may be well on
which can lead to big college cost savings.your way to saving thousands of dollars in college
6. If you are applying for financial aid to an institutionexpenses.
that uses the FAFSA application, keep in mind that the