Cost of Tuition Shouldn’t Deter Students
July 15, 2025
According to the Education Data Initiative, the cost of tuition at a four-year college has increased by 141% over the last twenty years. The average yearly cost for classes ranges from $9,750 at a public school and $35,248 at a private school.
Even with the rising cost of college, a degree still gives many graduates a higher earning potential. In 2023, workers with a bachelor’s degree earned 61% more than those with a high school diploma.
A 2024 Third Way survey found that 29% of high school students don’t plan on attending college because of the price, but the cost of tuition doesn’t have to be a barrier.
Here’s everything parents and prospective students need to know about saving for college.
Earn a Two-Year Degree for Less
One of the easiest ways to save money on tuition is to remain where you are. When you attend an in-state school and can prove your residency, you avoid the much higher out-of-state tuition rate. You can save a lot of money on tuition if you earn the first two years of your degree at a public community college before transferring.
A year at a community college can cost as little as $3,500, while attending an out-of-state public university can cost $35,000 per year. Plus, if you weren’t accepted into your first-choice university after high school, earning your two-year degree improves your odds of being accepted into another four-year university as a transfer student.
Most states also offer dual enrollment during high school. This means that students can attend both their high school and a local community college simultaneously, earning college credits or even a two-year degree by the time they graduate from high school. Not only do graduates get a head start, but they also shave two years’ worth of tuition off their bottom line, since the state funds these programs.
“A lot of people don’t go to college because it’s just so expensive,” says Ahmad Shehadeh, a Roxbury Community College student who’s attending through a Massachusetts state-funded program. “So by tuition being free, it’s benefiting the community in a way, and I’m glad that other people like me will have the opportunity to go to college and pursue what they need to pursue: their dream.”
For more information on your state’s dual enrollment opportunities, you may check the Education Commission of the States.
Meet With Your Counselors
To find out if your high school offers programs like dual enrollment, you’ll need to meet with your school’s guidance counselor, and the sooner you start high school, the better. Guidance counselors can help students devise their post-graduation plans and assist with the college admissions process, financial planning for tuition, and even scholarship applications.
The same rule applies to college. Financial aid counselors can help prospective students determine how to pay for their classes. Contact a counselor at each of your potential schools. For instance, they will know if their college offers work programs, such as the Federal Work Study program, where students can work on campus part-time while enrolled in classes.
All high school and college counselors will likely encourage every potential student, regardless of age, to complete a FAFSA form to determine if they qualify for any government aid.
Saving With a 529 Plan
Parents who want to begin saving for their children at birth will yield the most savings if they start earlier. The longer you wait to begin saving for your child’s tuition, the more you’ll have to save up each month to have enough for four years of tuition by the time they graduate from high school.
Using a savings account that yields interest for as long as possible is also beneficial. A 529 plan is a high-yield savings account designed for educational expenses. If you can save $100 a month in a 529 plan for 18 years, the total amount contributed will be $21,600. If the average annual return is 5%, your total savings with interest would be $35,400.
A 529 also comes with tax incentives. The money you earn as interest is tax-free, as well as any funds you withdraw for the beneficiary’s educational expenses. Additionally, these accounts are designed for anyone who wants to attend college. Adults who wish to return to school can open these accounts, name themselves as the beneficiary, and use the interest-bearing funds for their tuition.
Budget As You Go
College learning tracks vary for each individual. There’s always the option of taking one to two classes per semester instead of a full load of four or more. Students may opt to complete their degrees over a more extended period for various reasons, such as needing to work full-time or having children. Saving up for classes as you take them comes with some upsides, such as being able to focus more intently on coursework.
“If you’re working during college, you’re gaining important work skills that will be valued by future employers,” says Daniel Douglas, director of social science research at Trinity College in Connecticut. “You know about showing up on time, following directions given by a supervisor, and being generally diligent in your duties.”
Whether you’re a high school student or an adult who wants to attend college, begin to calculate how much money and time coursework will cost you. For example, if you still have to juggle a full-time job, then you need to be realistic about when you’ll attend classes and study. Time needs to be part of your budget, too.
When to Consider a Loan
There is no shame in considering a student loan once you’ve exhausted every other payment option. This is especially true if you have a high return on investment, meaning you’re earning a degree that will help you obtain a high-earning career. If you’re considering a loan, start with Federal Student Loans, which offer several built-in protections.
The cost of tuition shouldn’t deter anyone from pursuing their dreams. By doing research and conferring with counselors, you can come up with a plan to pay for college, even if that means getting creative. With Insureyouknow.org, you may store all of your research, financial planning, and school records in one place, making it easier for you to review and stay focused on your goals.