How to Pay for College (and Not Break the Bank)

Whether your parents started saving for your college education when you were a newborn or you began saving money from shoveling snow, mowing lawns, or babysitting, you and your family have many ways to tackle college expenses. It’s a good thing, too, because prices continue to rise, with average tuition and fees increasing 5.5% at private colleges and between 2.2% and 2.4% at public universities in 2024-25, according to recent data from U.S. News. 

Do these soaring prices mean college is out of your budget? Not necessarily. Often, the sticker price listed on a college or university website is not what students pay. Many factors go into calculating your final cost, like your grades, annual family income, available grants the institution has to award, and much more. You can even go onto your top schools’ websites and look for their net price calculator, which will help you estimate how much tuition might cost you.

But let’s back up a few steps. If college is a few years off, you can start saving now so those price tags don’t look quite so hefty once you’re ready to make your choice.

Increase college savings before graduating from high school

Education savings accounts (ESA)

These accounts allow parents and family members to contribute toward your education — and you can draw on funds to pay for tuition, books, uniforms, transportation, and other costs. The most popular ESAs? Coverdell accounts and 529 plans.

A Coverdell ESA permits $2,000 in annual deposits per beneficiary until you turn 18. While the money isn’t tax deductible, the account will grow tax-free — and withdrawals for qualified education expenses are also tax-free.

A 529 plan is more flexible, with higher contribution limits: $18,000 annually or $36,000 for couples filing taxes jointly. Total contributions vary by state and range between $235,000 to $575,000 as of 2024. You can use these plans to pay for higher education expenses, including tuition, room and board, and more. Some states allow withdrawals from these plans to pay for K-12 tuition, too.

Take AP or IB classes (and exams)

AP and IB classes offer college-level coursework in high school. If you take the associated exams and score high enough, your chosen college may award you credit and exempt you from having to take a similar class. The test fee (around $125) is significantly less than the cost of a three-credit course, and it frees your schedule to take other classes instead.

Consider dual enrollment while in high school

If your high school offers this program, you can earn college credits at your local community or four-year college at a much lower cost than taking those same classes once you’re a full-time college student. Essentially, you’re “pre-paying” for part of your degree while still in high school. Some states provide funding to support these programs, so you may not have to pay anything at all! By earning credits early, you can potentially reduce the number of semesters you need to earn your degree, graduate sooner, and save on tuition.

Student aid index calculated by FAFSA

The Free Application for Financial Student Aid (FAFSA) is an application you and your parents complete to determine your need-based and non-need-based federal student aid. Non-need-based aid includes Parent PLUS and unsubsidized student loans. Need-based aid includes Pell grants, subsidized student loans, and work-study. FAFSA makes its determination based on parent and student income and assets.  

Pro tip: Pay attention to timing. Colleges calculate financial aid awards based on the “prior-prior year” — in other words, your parents’ tax return from the year you were a high school sophomore (or first-semester junior). Your parents should meet with a financial planner when you start high school (or even earlier) to organize their financial life because if they’re not careful, it can artificially inflate their expected family contribution (EFC).

Scholarships and grants

You may think you have to wait until you’ve been accepted to college before you begin applying for scholarships, but many organizations award scholarships to high school — and even middle school — students. The awards are banked until you graduate and need the funds. If you have a little downtime during your summer breaks, check out available scholarships and grants you can apply for once you know what college you’re attending. And there are hundreds and hundreds available. In fact, over $2,100,000 in grant and scholarship money goes unclaimed every single year.

Get a part-time job

The average hourly salary for high school students working part-time climbed to just over $17/hr in 2024. That’s not too shabby! The U.S. Department of Labor divides working papers into two age categories: blue for 14 and 15-year-olds and green for 16- and 17-year-olds still in school.

Pro tip: If you’re in high school and pay for some of your expenses, like a car or car insurance, clothing, or extracurriculars, create a budget. It’ll help you track how much you earn, where you spend, and where you can save a little more.

Ask for cash gifts and save up

Whether you work part-time, receive money for holiday or birthday gifts, or earn an allowance or a few bucks doing extra chores around the house, earmark a portion of that income for savings. Parents, you can encourage more savings by matching your child’s deposits dollar-for-dollar.

If you’re heading to college in the next few years, talk to your parents about getting everyone’s finances in order. By taking proactive steps now, like exploring scholarships and grants, understanding financial aid options, and building good credit, you can ease the financial burden of a college education. 

Earn money while earning your degree

For many students, particularly those from low-income families, earning a college degree comes at a steep cost. Beyond tuition and housing, students need money for textbooks, clothes, food, and their social lives. As a result, many students split their time between academics, extracurriculars, and part-time jobs.

According to the Department of Labor Statistics, about 44% of students at 4-year colleges work while they study, whether a few hours on the weekends or several shifts spaced throughout the week. Managing a job and classes may feel intimidating, but it’s also a great way to get real-world experience, gain independence, improve your work ethic, and prepare for your first professional role after graduation.

Work-study jobs

Over 400,000 students are part of the federal work-study program, which provides part-time jobs to students with demonstrated financial need. Typically, it’s awarded as part of your financial aid package; however, you’ll still need to find and apply for a position once school starts. Once you’ve found a work-study job, the school pays you directly. 

Work-study jobs are generally on-campus and flexible, making it easy to fit into your schedule. You might work just one or two hours between classes or have a few longer shifts throughout the week. Positions can include administrative assistant, tutor, researcher, or laboratory aide roles. While you might find a job within your department that relates to your major, there’s no guarantee. 

Most schools have a student job board advertising available jobs. Some are open to all students — others only hire students with a federal work-study allotment. Salary and hours will depend on your job.

Part-time jobs

If you don’t qualify for work-study, you’ll find plenty of other part-time jobs on and off campus. You can try working at campus facilities, like the gym or the library, or giving guided tours to prospective students. Plenty of students find work in local businesses, including coffee shops, restaurants, and clothing stores. You can also find babysitting gigs, look for freelance work online, or turn one of your skills into a part-time gig.

If you decide to work off-campus, look for a job with flexible hours. For instance, some restaurants may only need help on Fridays and Saturdays, but do you really want to sacrifice all of your weekends? Keep your search close to campus to avoid spending hours commuting on the train or in the car.

Thinking outside the box

Looking for other ways to earn money in college? Consider a research grant. Many colleges will fund students interested in independent research projects. For example, Northwestern University offers a $4,000 Summer Undergraduate Research Grant that can cover your housing and research-related expenses. Programs like this offer a great way to earn (and save) money for the upcoming school year.

You can also find one-off opportunities to make cash, including donating plasma, participating in research studies, or completing online surveys. You can usually get on an email list for updates on future research projects seeking participants.

Prioritize a work-life balance

Working during college means you’ll have two jobs: your part-time job and full-time courses. Balancing all your commitments requires maximizing your productivity and cultivating time management skills. To avoid burnout, prioritize your homework, be realistic about your hours, and give yourself time to rest and recharge. It might take some trial and error, but with the right approach, you'll find a rhythm that works.

Want more tips and insights? Check out our full Guide to College Admissions here.