- The cost of attending college
is becoming more and more expensive.
And as tuition increases,
students are having to become more creative
on how to cover costs.
Now, if you don't have enough financial aid
or just not enough money to cover tuition,
here are 10 ideas on how to cover college costs.
(ambient music)
Hey guys,
it's Justine with The College Investor,
investing and personal finance for millennials.
Today, we're you're going to be covering 10 ideas,
10 ways for you to cover college costs.
Your first idea is to choose a cheaper college.
Now private out of state universities and colleges
are going to be the most expensive way
to fuel your higher education.
Now a step down from that would be to select
a public university that is in state.
You are going to get that full university experience
without that private school costs.
A tier down from public universities
would be community college.
Now you could do two years at a community college
and then transfer into a public university
as a way to offset costs,
or another hack that I personally used
was I took college classes over the summer
at a community college and then transfer those credits
over to my public four-year university.
So I was able to take a class with community college costs,
but I still had that public four-year university experience.
Your second idea is to join the military.
Now there are several financial aid opportunities
for those who joined the US Armed Forces,
including ROTC scholarships and the GI Bill.
The third way to cover college costs
is to cut those expenses.
So what I mean by that is buying used textbooks,
getting a roommate,
really hacking all of those college expenses
and keeping them down,
that could include walking or riding a bike to campus,
maybe doing a potluck with friends on campus
so that you are sharing meals.
And oftentimes, at least this was true for me,
is when I joined at different student organizations
or clubs on campus.
They would invite you in with free pizza,
and every college student loves free pizza.
So that's another way that you could cut down
on college expenses.
Your next idea is to get a job.
You can hack this by working full-time during the summer,
save up enough money,
and then live off of those savings
throughout the school year
so you don't have to work during the school year.
But you can also snatch up a really good part-time job,
either on campus or off campus,
throughout the school year to supplement your income.
That's exactly what I did when I was in school,
and I was able to waitress on the evenings and weekends
to pay for things like rent
and most importantly, food.
Another way to pay for college is to sell your stuff.
Now, other college students
are often looking for a good deal.
So you could sell your textbooks
directly back to other college students
as a way to help you pay for tuition
or pay for the next set of textbooks.
My sister was able to do this
and she also sold her old bed set using Facebook marketplace
so that she didn't have to haul it
all the way back home with her,
and some other college student got a really good deal.
Your sixth way to help pay for college
is to ask friends and family for help.
Now, instead of getting a birthday gift or a Christmas gift,
you can ask for donations to your college tuition.
The next idea is to get help from the IRS.
Now, when you follow your federal tax return,
you can actually claim certain tax deductions
for your educational expenses.
So the American opportunity tax credit
is a partially refundable tax credit,
where you can claim up to $2,500
towards educational expenses,
depending on your tuition and textbook costs.
Then there's also the lifetime learning tax credit,
where you can claim up to $2,000 in tax deductions.
Also, if you decide to contribute to a 529 plan,
your state may allow certain state tax deductions
if you contribute to a 529 plan,
even if you immediately withdraw the money to use
for education expenses.
We have a whole mega guide on how 529 plans work,
including the 529 plan that fits your state on our website.
Next, if you haven't done this already,
make sure you apply for financial aid
by using the FAFSA form on studentaid.gov.
Now make sure that you fill out that FAFSA form
each year that you will be attending college
because your federal financial aid amounts
could change throughout your course of your college career.
Now, if you've already exhausted
your financial aid federally,
then you can,
your next option is to appeal for more financial aid.
Now, you're gonna have to do this
through your university's financial aid office,
but under special circumstances,
you can appeal for financial aid.
So this could include income cuts or job loss,
disability,
perhaps other siblings are now in college,
or you have multiple dependents,
any of these situations,
you can appeal for more financial aid.
And you can even do this throughout the school year.
So be sure to check this out
with your student financial aid office.
Okay, we had to put this on here as a last option for you,
but yes, number 10, you can borrow the money.
But if you're gonna borrow the money,
be sure you start with the federal student loans first.
So it's important that you fill out that FAFSA form
because it's going to list any grants
that you might be eligible for
plus any federal student loans.
Now, federal student loans are more favorable
because they typically come with low fixed interest rates
that you can pay back over time.
Plus, it has other benefits like deferment and forbearance
that you can take advantage of.
But if that's not the case and
you have exhausted those resources,
then you can look at private student loans.
However, you might need a co-signer
when it comes to private student loans,
and their interest rates are often higher
and sometimes variable,
meaning those interest rates may change over time
and it might cost you a lot.
Either option,
you're going to have to pay back those loans plus interest,
and that can take years and years to payback.
All right, so those are 10 ideas,
10 ways to help you cover the cost of college
if you don't have enough money
or you've exhausted other financial aid resources.
If you want more ideas on how to pay and save for college,
we have a ton of free resources for you
over at thecollegeinvestor.com.