How to Pay for College with Cash

Last month, I talked about sneaky ways that student loan lenders try to get students to take out loans and borrow more than they should. I mentioned that the best way to pay for college is with cash. 

But how do you actually do that? College is expensive. Very few families have an extra $20,000 to $50,000 lying around each year nor did that many start saving for college while their precious baby was still in the womb. Well, it may not be easy, but here are some tips on how to pay for college without using loans. 

Find a less expensive school

OK, I know this sounds like either a no-brainer or an impossible dream. But there really are very good schools out there that don’t cost as much as others. The thing is, those schools are rarely going to impress high school guidance counselors or your parent’s fancy friends. In-state schools, community colleges, and regional universities don’t have as much brand-name recognition as other schools, such as those in the Ivy League, but their tuition is much lower. In some cases, it’s way lower, which translates to tuition that is more easily affordable for a cash-paying student. 

Consider two-year colleges

With the cost of college tuition on the rise over the last several years, the two-year school or community college has emerged as an affordable option for students who are looking to pay cash for school. Think that there is a stigma against community colleges? I assure you, the stigma is unearned. Take our local Northwest Arkansas Community College as an example. It is highly regarded throughout the state and even the nation for its quality programs. According to Higher Ed today, community college graduates have greater employment outcomes and earn more than non-graduates.

If you choose a community college, you may have to live at home or find an apartment to rent since many of these schools don’t have dorms. But that is still more affordable than paying two years of tuition at a four-year school. Just make sure the credits you earn there transfer well if you plan on going on to a four-year institution. 

Scholarships

Apply for as many scholarships as you possibly can; even those you don’t think you’ll get. A lot of scholarship money is left unused because there were no people applying for it. When I was finishing up my accounting education, my university encouraged us to apply for their College of Business scholarships. They told us that many scholarships went unclaimed simply because they didn’t have any applicants. I was able to have my full tuition paid plus receive a stipend for my last year of school simply because I completed the application. 

Work

I saved the best for last! I know many parents discourage their children from working while they are in school so they can concentrate on their classes. While this makes logical sense, the statistics don’t bear this out. Research done a couple of years ago conducted by the Bureau of Labor Statistics shows that students who work fewer than twenty hours per week have a higher GPA than non-working students. 

Work helps a student learn time management, people skills, and customer service skills all of which will translate over to their career-starting job after graduation. In fact, from my own experience, I’d say that the skills a student learns by working will serve them even better than the knowledge they gain in school. 

Are you figuring out ways to manage your cash flow to help pay for college? Give me a call and I can help you set a budget or find ways to pay yourselves through your business so that they have money to give their college-aged child?