College education costs in the United States are approximately $38,270 per student annually. This amount covers books, supplies, and daily living expenses.
Meanwhile, tuition costs have more than doubled in the 21st century, with a 4.11 percent annual compound rate.
If you plan to attend an in-state university, the average cost is $9,750. For out-of-state universities, the tuition can cost around $27,457. You may even spend around $58,628 while living on campus each academic year, with $38,768 spent on tuition and other fees alone.
Considering other factors like student loans and loss of income, a bachelor’s degree investment may cost over $500,000.
Without sufficient financial resources, sustaining these costs may mean exhausting your savings or your parents’ reserves. Fortunately, there are many financing alternatives.
Here are the financing strategies to fund your undergraduate studies without dipping into your bank or out-of-pocket money:
Establish Residency in Your Chosen University’s State
If your chosen university is out-of-state, consider moving there and establishing residency. In-state public universities are often cheaper than out-of-state public and private schools. A residency can help you qualify for in-state tuition. However, you must meet your chosen state’s residency requirements.
Generally, the qualifications include a minimum of 12 months of physical presence, an intent to stay, and financial independence.
For example, in addition to the 366-day living status, you must provide evidence of an intent to stay before requesting residency in California, such as steady employment, a driver’s license, and property ownership. If you don’t have parents living in California, securing residency before your mid-20s can be challenging.
If you can wait to meet these qualifications, you can be eligible to attend in-state universities in your preferred state. Attending an affordable school where you can maximize your budget is also helpful.
Earn Scholarships
Scholarships are merit-based. You can earn them based on your academic record and other accomplishments. The good thing about these financing options is that they’re widely available at the federal level and local non-profits.
For example, you can receive scholarships based on your standardized test scores, grade point average, or volunteer hours. If you’re an athlete, you can play specific sports in college to earn a scholarship based on athletic success.
Scholarship coverage depends on the organization and its qualifications. You can secure a one-time or annually renewed amount of $500 or $10,000. Ensure you understand the fine print to obtain coverage that fits your undergraduate education needs.
Consider Summer Jobs
Summer jobs can help you build savings for college. If you’re a college-bound high schooler, consider the following options:
- Transcriber – Fast typing skills can help you earn by transcribing audio content. You can find this job at freelance transcription job boards and transcription companies.
- Tutor – You can make an hourly wage through online or in-person tutoring by helping students in specific subjects.
- Graphic designer – You can earn by designing layouts for advertisements, brochures, magazines, and reports.
- Dog walker – You can earn money from walking dogs.
Apply for Grants
Grants are earned based on monetary needs. You can apply for them at local, federal, and institutional levels.
Many organizations with scholarships also offer grants for need-based recipients. You can even find grants based on race, gender, sexual orientation, and where you live.
However, like scholarships, grants have different deadlines and requirements. They also have one-time and renewable options. If you think the grants you can qualify for are limited, broaden your research by including your socio-economic background and parents’ occupations.
Get a Job Related to Your Studies Through the Federal Work-Study
Federal work-study programs can help you earn minimum wage in part-time jobs related to your studies. Like traditional jobs, you’re paid weekly, bi-weekly, or monthly throughout employment.
To qualify for these programs, you must file the FAFSA form—Free Application for Federal Student Aid—each year you’re in school. You must demonstrate a monetary need and indicate your interest in the work-study programs.
However, not all universities participate in the federal work-study program. You must confirm the availability of the aid with the financial aid offices at the university of your choice.
Once verified, apply early because the aid may be offered on a first-come, first-served basis.
Invest in a Qualified Tuition Plan
The qualified tuition plan (529 savings) is a tax-advantaged account for qualified college expenses and K-12 private school tuition.
This account has two types: education savings and prepaid tuition. Most states provide at least one.
An education savings plan lets you put funds in an investment portfolio. Then, you can withdraw the savings to cover your qualified education expenses.
Meanwhile, a prepaid tuition plan lets you purchase credits or units at participating colleges.
Remember that you’ll face tax penalties if you use the funds toward non-qualified expenses.
Apply for Paid Internships
Internships can help you build credentials and skills while in school. Many companies offer paid internships that will help you cover your undergraduate education.
You can find paid internships through online forums, job websites, and recommendations from family and friends. You can also visit your preferred school’s career center for information about the available internships.
Remember that paid internships can be challenging to secure, depending on your field.
Take a One-Year Break From Studies After High School
A one-year break from studies after high school is called a gap year. This break allows you to work or plan for college.
You can use this time to determine your university and degree. Also, you can take jobs to save money. It will help you finish the year without interruptions and avoid missing out on growth opportunities.
Gap year aims to provide clarity of mind and time off to make more informed decisions on your undergraduate studies.
Receive College Credits With the Advanced Placement (AP) Program
Advanced Placement (AP) programs are college-level studies you take during high school. When you pass the tests associated with these courses, you can skip some subjects and enroll in college faster.
With high college credits, typically four or five, you can fulfill prerequisites, skip introductory courses, or accelerate your graduation.
However, you must verify if your chosen university offers college credits for AP scores. This information can be found on admissions and department websites.
Get Funds Through a Student Loan When Necessary
If you think your savings and student aid are insufficient or have exhausted your funds, you can take out student loans to fill the gaps. You have two options: a federal and a private student loan.
Federal loans have Direct, Direct PLUS, and Health Professions programs.
The Direct option has subsidized and unsubsidized aid. The U.S. government will cover the interest for the subsidized loan if you meet the requirements.
On the other hand, you’ll pay the interest for the unsubsidized loan. You must also demonstrate evidence of monetary hardships.
Direct PLUS has a loan for parents. If you are dependent, your parents or guardians can use this aid to fund your undergraduate education.
The Health Professions Student Loans (HPSL) are eligible for dentistry, optometry, pharmacy, veterinary medicine, and podiatric medicine degrees.
Meanwhile, a private student loan is a non-federal aid from banks, credit unions, and other private lenders. The rates for this loan primarily depend on your credit history.
To apply for these programs, take note of the following application steps:
For federal student aid:
- File the FAFSA form. The general deadline is June 30, 2025, at 11:59 p.m. Central Time for the academic year 2024 to 2025. However, review the submission guidelines for your state and chosen university because they may have different deadlines.
- After filing the FAFSA form, you’ll receive your Student Aid Report (SAR). Thoroughly review the terms to determine whether you need private aid.
For private student aid:
- Explore and compare the lenders’ offers, rates, discounts, repayment conditions, and perks.
- After choosing a lender, prepare and submit the requirements.
- Once approved, your lender will forward the money directly to your university. Your university will disburse the remaining amount after using the funds for education-related expenses.
Fund Your Dream College Without Breaking the Bank
Undergraduate education can be challenging to afford financially. However, these financing strategies can help make the expenses more manageable.
You must combine these approaches by planning early and remaining focused on your goals. At the same time, you can consult your family, friends, and a financial advisor (if feasible) to maximize your funds without breaking the bank.
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