Saving for education is a popular goal for veterans, despite many having access and support though the GI Bill. Whether you're saving for education for yourself or a family member there are many different considerations to make factor in when it comes to both saving and paying for college.
According to the College Board, the average cost of tuition and fees for the 2022-2023 school year was $39,400 at a private nonprofit four-year school, $28,240 for out-of-state residents attending public universities, $10,950 for state residents at public colleges, and $3,860 for a public two-year in-district community college. These figures represent an increase of 1.8% - 3.5% before inflation adjustments.
Here are some ways you can minimize the cost of college:
- Grants and scholarships are often called “gift aid” because they are free money – financial aid that doesn't have to be repaid. Grants are often need-based, while scholarships are usually merit-based.
- According to the College Board, the average community college costs $3,435 and the average student received enough grants and tax breaks to cover the typical tuition and all but $10 of the average $1,230 bill for textbooks and school supplies. Attending this type of college for your first two years can save you thousands of dollars.
- Earning money while you attend school is one way to help keep costs down – especially if you don’t have enough saved to pay for college in full. Any money you earn is money you don’t need to borrow.
- Some schools provide part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the student’s course of study.
Here are some ways to save for college:
- A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.
- The Education Savings Bond Program permits qualified taxpayers to exclude from their gross income all or a portion of the interest earned on the redemption of eligible Series EE and Series I bonds issued after 1989.
- If you need to borrow money to pay for college or career school, start with federal student loans.
Emergency fund 