6 Ways To Tackle College Costs: Essex County CPAs Share Tips

ESSEX COUNTY, NJ — Does the prospect of paying college tuition for your kids make you want to panic? While college can be a major expense, there are ways to minimize the cost, according to a Essex County-based accountant group.

The New Jersey Society of Certified Public Accountants, which is headquartered in Roseland, recently released a list of ways that students – and their families – can tighten up their belts when it comes to college. Check out their suggestions below.

Start at a Community College

"Is your student hoping to graduate with a diploma from a prestigious, but very expensive, college? That goal may be more achievable if the student starts out at a community college and then transfers to his or her top-choice after earning an associate’s degree. Community colleges are generally very affordable, which can help you stretch your education budget and perhaps make it easier to pay for the last two years at a costlier school. To ensure this plan works, confirm that the college your student will transfer to will grant full credit for the courses he or she takes at the community college. Your student should also be sure to take all the right prerequisites for the classes necessary for his or her intended major and any other graduation requirements."

Accelerate the Process

"There’s no rule that says college has to last four years. Your student can aim to finish in less than that. It’s often possible to get a jump on graduation simply by taking college credit courses in high school. This can cut down on tuition, as well as additional living, transportation and other associated expenses. Graduating sooner also means your student can begin earning an income sooner."

Stay in State

"Going to a public university in your home state is typically much less expensive than going to a private or out-of-state public university. If the in-state public college isn’t your student’s dream school, remind him or her of the value of graduating with no (or lower) student loans and the impact it can have on a post-college budget. It may help make the in-state school more appealing."

Anticipate Possible Tuition Hikes

"In-state tuition and fees at public four-year institutions rose 3.2% per year beyond inflation during the last decade, and 2.4% at private nonprofit four-year institutions, according to the College Board. That means you should factor in the possibility that the tuition you pay during your first year may rise steadily each year. Research the recent history of tuition increases at your top choices and determine whether you’ll be able to afford the highest rate you may have to pay once your student gets to senior year. If your student is already in school and faced with a tuition hike, find out whether the higher cost qualifies your family for more financial aid. Summer or campus jobs are other ways to cover a spike in tuition."

Manage Student Loan Money Wisely

"Some students may be tempted to borrow the maximum amount of money possible but student loans should only be used for needs, not wants. Your student shouldn’t borrow money and then spend it on weekend entertainment and spring break trips. If your student does borrow more than they need, have them save that money and borrow less the next year. This will help reduce the amount of their outstanding loan balance, so there’s less debt hanging over their head after graduation. Remind them that the smaller their loan balance, the less interest they’ll have to pay over time. Check out these four tips when taking out a student loan for more information."

Your Local CPA Can Help

"Every day, local CPAs offer clients expert advice on a wide variety of financial concerns, including making a major purchase or obtaining a loan. Whatever your financial questions, your CPA can help you find the answers."

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