Vida Jatulis
Certified Financial Planner, MainStreet Financial Planning
Key Takeaways
- College is expensive, but costs can be reduced with early planning.
- Strategies such as earning college credits in high school, starting at a community college, and applying for financial aid can significantly lower expenses.
- Choosing the right schools and setting realistic expectations can also help students graduate on time and avoid extra costs.
A college education can be a major expense. With average annual sticker prices ranging from $30,990 for in-state students at public four-year colleges to $65,470 at private nonprofit four-year institutions, costs can add up quickly — particularly for families with more than one child in college (College Board, 2025). Fortunately, there are strategies to help lower those expenses.
If your child is five or fewer years away from college, the following strategies could help. To maximize their effectiveness, most of these strategies should be set in motion before your student applies to schools. Look at these seven ways to reduce the cost of college, and if one or more seem like viable options, include your student in the decision process. Having a plan will make picking a college more joyful for the whole family.
How to Reduce Costs
1. College credits in high school
Your student may be able to earn college credits by taking Advanced Placement (AP) courses in high school. Some students earn enough credits to allow them to finish college in three years instead of four.
2. Start at a community college
The first two years of college mostly satisfy core education requirements, which can be taken at a community college at a much lower cost. With careful planning, the student can transfer to a 4-year college to complete their degree.
3. Regional Tuition Exchange (TE) programs
Your student may be able to go to college out of state at a discounted price with tuition reciprocity. For example, the Academic Common Market (ACM) is a tuition reciprocity program in 15 southern states including Florida and Texas. To qualify, a student must pursue an eligible degree not offered by public institutions in their home state (Southern Regional Education Board, n.d.).
4. Apply to generous schools
Some schools are more generous with financial aid than others. Choose colleges that meet 100% of demonstrated financial need and renew scholarships beyond freshman year.
When looking at the data, private colleges on average award more financial aid. According to College Board research, in 2022-23, 83% of undergraduate students at private colleges received institutional aid compared to 65% at public colleges (College Board, 2025).
5. Apply for private grants and scholarships
Searching for private scholarships takes time and patience, but free money for college is available. Large awards are highly competitive, so students should have realistic expectations. They are more likely to win smaller scholarships, which can still help close funding gaps.
6. Graduate on time
Apply to colleges with high graduation rates and help your student choose the best fit. Undergraduate students who transfer between colleges are more likely to take longer to graduate, often due to credit loss or interruptions in enrollment during the transfer process (Witteveen & Attewell, 2019).
7. Prepaid plans
Prepaid plans can help you avoid rapidly inflating college prices. By locking in current tuition rates for future studies, you can end up paying less. One example of a prepaid plan is Private College 529.
Final thoughts
Unlike student loans and work-study programs — which do not reduce the cost of college but help pay for it — these seven strategies can save you a lot of money. The key to a successful plan is getting started as soon as you can.
My son graduated from UC Santa Barbara in 4 years. I am so proud but also grateful that we set expectations for his success — a win-win strategy.
Sources
College Board. (2025). Trends in College Pricing 2025 (Published Prices and Figure SA-21B). https://research.collegeboard.org/media/pdf/Trends-in-College-Pricing-and-Student-Aid-2025-final_1.pdf
Southern Regional Education Board. (n.d.). Academic Common Market. https://www.sreb.org/AcademicCommonMarket
Witteveen, D., & Attewell, P. (2019). Delayed time-to-degree and post-college earnings. Research in Higher Education. https://pmc.ncbi.nlm.nih.gov/articles/PMC7875953/
