College Funding Today- Hunting for Bargains
I’m pretty sure all of us are feeling the inflation pinch at the grocery store, the gas pump, or any restaurant you can afford once a month, not to mention your Rent that just skyrocketed. My city decided now would be a great time to increase property taxes by 30%. ( Renters, that WILL impact your rent! )
Everyone I know is doing the bargain hunt these days just to pay the bills. So then, why are we not extending that to planning for college? Today, with college loans sporting 8% interest rates, and prices continuing to climb, it makes sense to step back and check out options. Here’s what I’d do.
What does our Community College Pathway to University look like? In my state, North Carolina, there are 58 community colleges across the map. 38 of those 58 have a patch quilt of scholarships, final gap grants, etc., resulting in a personal tuition cost of just $500 per semester. That’s $1,000 per year! Yes, there are travel costs, books, etc. Add another $2,000, to $5,000 at the most. The first two years of most University degrees are loaded with Introduction-to-Everything required courses. Your student can knock that off at the local Community College for pennies on the borrowed dollar.
Consider working on the side to “pay as you go.” Surely you can work a couple of days in the restaurant industry every week and cover your expenses and taxes. I worked my last two years of college in a good-paying job on campus. I needed it for my used car purchase & maintenance.
While at Community College, target the University you want to attend- check with your CC counselor to ensure you are getting the grades needed, and have taken all the suitable classes for the major you expect to enter.
Prepare yourself for a challenging transition- new school, new professors, increased personal responsibility, and a demanding course of study. You will need to hit the ground running. Go to class. Take good notes. Study well. Rinse, sleep, and repeat. Work to make sure you are on time to graduate in the final two years! Every semester extra is lots more borrowing!
Every state has some great bargains somewhere in its public higher education systems. By doing your work, your research, and your bargain hunting, you can save tens of thousands of dollars.
I don’t care how much money you have in the bank, or not. Borrowing from your financial future is no longer a good bet. It is a sucker’s bet. Want to make money right now? Don’t buy the 4-year “experience” if it means you are borrowing $8-15k EVERY YEAR. That will bury you.
Tip: I wouldn’t count on another “forgiveness” option to take care of this issue. That is right up there with gambling in Vegas. Political winds change frequently.
