4 answers
Meg
Student
1
Question
Asked
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What amount do i have to save for college?
Who am i to go to college and study
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4 answers
Shirley L
Accountant
8
Answers
New York, New York
Updated
Shirley’s Answer
There are many factors that come into play when determining how to save for college.
Although this isn't an exhaustive list, it can steer you in the right direction:
1) Are you a resident of the same state as the college or university? If not, out-of-state tuition costs more than in-state tuition.
2) Do you plan to dorm/commute to class? Dorm is an important factor of the college experience, but can also be expensive
3) Textbooks/Course Materials - Most classes will require certain materials such as textbooks, computer software, etc.
4) What major are you pursuing? There are private and public colleges. Public colleges are less expensive whereas private colleges are more expensive. This is a personal choice - depending on the prestige, reputation and programs each distinct college offers.
Fortunately, there are ways to mitigate the cost of attending college:
1) Scholarships - Ask your college about any scholarships you may qualify for
2) Financial Aid - Apply for FAFSA and any state-sponsored tuition reduction programs
3) If you don't already have one, open up a 529 college savings account
4) Ask your parents/CPA about taking advantage of the lifetime learning credit and/or American Opportunity Tax Credit
Although this isn't an exhaustive list, it can steer you in the right direction:
1) Are you a resident of the same state as the college or university? If not, out-of-state tuition costs more than in-state tuition.
2) Do you plan to dorm/commute to class? Dorm is an important factor of the college experience, but can also be expensive
3) Textbooks/Course Materials - Most classes will require certain materials such as textbooks, computer software, etc.
4) What major are you pursuing? There are private and public colleges. Public colleges are less expensive whereas private colleges are more expensive. This is a personal choice - depending on the prestige, reputation and programs each distinct college offers.
Fortunately, there are ways to mitigate the cost of attending college:
1) Scholarships - Ask your college about any scholarships you may qualify for
2) Financial Aid - Apply for FAFSA and any state-sponsored tuition reduction programs
3) If you don't already have one, open up a 529 college savings account
4) Ask your parents/CPA about taking advantage of the lifetime learning credit and/or American Opportunity Tax Credit
Kanwal Naz
7
Answers
Lincoln, Nebraska
Updated
Kanwal’s Answer
Excellent query! It's a common struggle for many to determine the exact sum they should set aside for college education. You've already made a commendable move by contemplating the right approach.
The amount you need to save for college is your concern. It's indeed challenging to attend college, and having savings earmarked for this purpose can be beneficial.
The sum you need to save greatly depends on the college you choose. Are you considering a local college or a state university? Your choice will guide your next steps. To give you a clearer picture, let me provide an example. In my locality, the average cost for a 4-year university ranges from $20,000 to $30,000. On a semester basis, it's roughly $4,000 for a full-time student, and this covers only the tuition fee.
You also need to factor in additional expenses like accommodation, food, and transportation, which often pose challenges for students. If you're planning to rent instead of living with your parents, you might have to shell out around $1,200 a month. Gas could cost you between $40 to $50 every fortnight, and for food, you can choose to eat out, dine at the college, or cook at home. Grocery bills could range from $300 to $400 a month.
Remember, this is just an example. Your situation might differ, and that's perfectly fine! Do what's feasible for you and proceed accordingly. Basic information like this should be available on the college/university's website. Also, bear in mind that students often travel during summer and school breaks, so you should save for that as well. Travel expenses could be as low as $2,000 or even more for just a plane ticket.
The amount you need to save for college is your concern. It's indeed challenging to attend college, and having savings earmarked for this purpose can be beneficial.
The sum you need to save greatly depends on the college you choose. Are you considering a local college or a state university? Your choice will guide your next steps. To give you a clearer picture, let me provide an example. In my locality, the average cost for a 4-year university ranges from $20,000 to $30,000. On a semester basis, it's roughly $4,000 for a full-time student, and this covers only the tuition fee.
You also need to factor in additional expenses like accommodation, food, and transportation, which often pose challenges for students. If you're planning to rent instead of living with your parents, you might have to shell out around $1,200 a month. Gas could cost you between $40 to $50 every fortnight, and for food, you can choose to eat out, dine at the college, or cook at home. Grocery bills could range from $300 to $400 a month.
Remember, this is just an example. Your situation might differ, and that's perfectly fine! Do what's feasible for you and proceed accordingly. Basic information like this should be available on the college/university's website. Also, bear in mind that students often travel during summer and school breaks, so you should save for that as well. Travel expenses could be as low as $2,000 or even more for just a plane ticket.
Martha Kramer
Corporate Training, Communications
216
Answers
Stamford, Connecticut
Updated
Martha’s Answer
Hi Meg, this is a good question to ask. The Fidelity link below suggests $80,000 for an in-state school. And the US News link below shows average tuition cost but the answer for any individual may be significantly different. Here's why:
- Costs for housing, food, books and travel to and from your home will vary based on the area and how far away they are from where you live
- You may be able to significantly reduce these costs with merit and need-based loans, as well scholarships and campus jobs. Schools that have "need blind" admissions don't hold it against you if you need financial assistance
- Some people start at a community college to save money and then transfer to a 4-year institution. Besides having less expensive tuition, a community college would save housing and food costs
I have also added a link about how to find scholarships. Your guidance counselor might have other resources. Good luck!
US News statistics - https://www.usnews.com/education/best-colleges/paying-for-college/articles/paying-for-college-infographic
Fidelity advice - https://www.fidelity.com/learning-center/smart-money/how-much-to-save-for-college#:~:text=Once%20you%20have%20an%20idea,based%20on%202023%E2%80%932024%20data.
How to find scholarships - https://studentaid.gov/understand-aid/types/scholarships
- Costs for housing, food, books and travel to and from your home will vary based on the area and how far away they are from where you live
- You may be able to significantly reduce these costs with merit and need-based loans, as well scholarships and campus jobs. Schools that have "need blind" admissions don't hold it against you if you need financial assistance
- Some people start at a community college to save money and then transfer to a 4-year institution. Besides having less expensive tuition, a community college would save housing and food costs
I have also added a link about how to find scholarships. Your guidance counselor might have other resources. Good luck!
Martha recommends the following next steps:
Elizabeth (Betsy) Kvedar, CPTD®
Learning Consultant
69
Answers
Shelburne, New York
Updated
Elizabeth (Betsy)’s Answer
Hello Meg,
Determining the exact amount of money you'll need for college can seem like a daunting task. But don't worry, it's not as complicated as it seems. Here are a few points to consider:
1. Identifying your area of study: Your choice of study should align with your interests and talents. If you're uncertain, your school counselor can help. They may have skills assessments available - these tests can highlight your strengths and suggest potential areas of study. Once you've identified a few potential majors, you can start exploring colleges that offer these programs.
2. Choosing the right college: Keep in mind that it's quite common for students to switch colleges or universities before they graduate. In fact, about 30 to 40% of students do so. Therefore, changing your mind later isn't unusual. Start your search by looking at local colleges that offer programs related to your interests. If possible, visit these colleges and talk to their students to gain insights into their experiences. Also, inquire about practical assignments and capstone projects that offer hands-on learning experiences. Ask the school counselors about job placement rates for graduates and whether further education or licensing is required for your chosen field. For example, in professions like medicine, additional post-graduate degrees and licenses are often necessary, which can increase costs. Lastly, don't forget to ask about scholarships, financial aid, and other financial benefits that the school might offer.
Once you've identified potential study areas and colleges, it becomes easier to estimate the amount of money you'll need for college. It might seem overwhelming at first, but remember, you can always reach out to a financial aid counselor for advice on funding options and scholarships.
Best of luck on your journey!
Determining the exact amount of money you'll need for college can seem like a daunting task. But don't worry, it's not as complicated as it seems. Here are a few points to consider:
1. Identifying your area of study: Your choice of study should align with your interests and talents. If you're uncertain, your school counselor can help. They may have skills assessments available - these tests can highlight your strengths and suggest potential areas of study. Once you've identified a few potential majors, you can start exploring colleges that offer these programs.
2. Choosing the right college: Keep in mind that it's quite common for students to switch colleges or universities before they graduate. In fact, about 30 to 40% of students do so. Therefore, changing your mind later isn't unusual. Start your search by looking at local colleges that offer programs related to your interests. If possible, visit these colleges and talk to their students to gain insights into their experiences. Also, inquire about practical assignments and capstone projects that offer hands-on learning experiences. Ask the school counselors about job placement rates for graduates and whether further education or licensing is required for your chosen field. For example, in professions like medicine, additional post-graduate degrees and licenses are often necessary, which can increase costs. Lastly, don't forget to ask about scholarships, financial aid, and other financial benefits that the school might offer.
Once you've identified potential study areas and colleges, it becomes easier to estimate the amount of money you'll need for college. It might seem overwhelming at first, but remember, you can always reach out to a financial aid counselor for advice on funding options and scholarships.
Best of luck on your journey!