Saving up for college can be a daunting task and incredibly daunting for those who don’t know how to start. With tuition prices and student loan interest rates at an all-time high, it’s no wonder so many students are struggling to pay for their education themselves. The good news is, there are numerous ways to save for college, so never give up hope. Here are 10 of the best ways to save towards your college education.
1. Look into Early Scholarships
Look into scholarships that may pay out their rewards early. Certain scholarships can provide you with money to put towards college years before you’re even due to enter school. Check out your local and state scholarship opportunities to see what’s available, or look into private scholarships from foundations and businesses.
2. Start a Savings Account
Start a savings account as early as possible for your college expenses. Online banks such as Ally and Simple are great for providing excellent rates. Any money you’re able to save in this account can be used towards tuition, room and board, textbooks, and any expenses you’ll need while in school.
3. Combine Your Savings
If you have family members or friends who are also trying to save money for college, consider combining your savings into a single pot. This will allow you to save more money faster, as you’ll be contributing more funds than you could on your own.
4. Open a 529 Plan
Start a 529 plan during the early years of preparing for college. 529 plans are an easy way to save for college through investment funds and can be opened for any student. The higher the rate of return, the more money you’ll have to use towards college when the time comes.
5. Cut Unnecessary Expenses
Cut back on any unneeded expenses that can be put towards college savings. This might include foregoing cable service, going out to eat once a month, or joining the cheapest gym in town. With extra money in your pocket, you’ll be able to save up more.
6. Get a Job
Another easy way to save up money for college is to get a job. Not only will you be bringing in more money to save, but you’ll be gaining valuable work experience as well. Consider working part-time while in school or look into seasonal jobs that can pay higher wages and bonuses.
7. Ask for Help
Don’t be afraid to ask friends and family for help. Many people will be more than willing to help out with the cost of college if given the opportunity. Another great way to ask for help is by setting up a crowdfunding page to have people donate to your college fund.
8. Open a Savings Bond
Open a savings bond with the money you have saved. A savings bond is a great way to save money for college as it’s completely secure and you can get a tax break when you cash them in for college expenses.
9. Take Advantage of Tax Deductions
Look into all of the tax deductions, credits, or incentives you may be eligible for. Taking advantage of deductions can put more money back into your pocket. Consider using the American Opportunity Credit and the Lifetime Learning Credit to pay for tuition, fees, and other educational costs.
10. Look into Loan Deferments
Finally, if all else fails, look into deferment options for your loans. A loan deferment can put a halt on having to pay off your loans while still in school and help you save money on interest.
Final Thoughts
Ultimately, saving towards your college education can be a difficult task, but it’s not impossible. With the right strategies in place and dedication, you’ll be on your way to paying for college in no time. Don’t let the stress of the situation keep you from achieving your goals and always look for opportunities to save money. Good luck!
