Five Ways to Pay for College, If You Haven't Saved

Today's post is the final post of our series on saving for college. If you've missed the earlier posts, here they are.

• Ten things to do before saving for college
• Retire First, College Later
• Reasons to Save and Not to Save for College
• 529 Plans Debunked
• Five ways to pay for college if you haven't saved

Five Ways to Pay for College if You Haven't Saved

If your child is headed off to college this fall and you haven't saved, you still have several options. Each of these individually may not fund their entire education, but when used in conjunction are likely to get your child the education she needs to set out on an independent and successful life.

Apply for a federal grant. The difference between a grant and a loan, is you don't have to repay the grant. The US Government has several types of grants. The most common is a Pell Grant. The maximum amount for the 2009-10 school year is $5,550, which can make a big dent in tuition, fees, and books. If you are a Pell Grant recipient, you may also qualify for an Academic Competitiveness Grant, which adds another $750 to $1,300. You can read about and apply for grants on the Department of Education's site.

Get a summer job. Have your child get a job. They probably won't be able to save the entire amount, but a summer of $8 / hour will net around $3,000. You might even work out a deal where you match their savings to motivate them to save as much as possible.

Maximize then use your tax return for tuition. Once your child is in college, you or she will likely qualify for some tax advantages. The tax programs include the Hope and Lifetime Learning credits as well as some deductions. If your income is too high for one of the credits, you can probably still deduct tuition payments to reduce your tax bill. Use all or some of the credits and deductions to funnel money toward college. The IRS website gives more information about tax benefits of college.

Apply for a loan. A few options exist for borrowing for college. The federal government administers student loan programs that meet most student's needs. The biggest difference between the government's loans and grants is loans must be repaid. Available loans range from subsidized student loans to Plus loans where the parent is the person responsible for repayment. You apply for a federal loan using the same form as your Pell Grant. Some of the loans even have deferral options so you don't have to repay until your child is finished with college. You can read more about the options on the Department of Education's site.

Reduce college expenses. Reducing the tuition and fees for your child may be difficult if they are working toward a specialized degree. You can save a lot on college expenses though. Have your child live at home during college. Most areas of our country now provide access to remote learning where your young adult could take classes via the internet to get through their general education.

Another option for reducing expenses is to attend a cheaper school. In Utah, most kids want to attend the U of U or BYU. They are also two of the most expensive schools in Utah. A great way to get a degree from a top school and keep your expenses down is to attend a community college or smaller university for the first couple years. If you pursue this route, make sure credits will transfer to the school you plan to get your degree from.

It Is Achievable!

As you can see, if you're headed to college or have a child headed to college you can go even if you haven't saved. I know plenty of people who headed to college with little or no savings. They had a lot of encouragement and support from parents, were committed to getting an education, and found ways to leverage all of the options above to get through school. So can you!