How to Plan for College Expenses

College student and mentor discussing student loans on a laptop for Brazos educational funding.

BIG Ideas:

  • The cost of college includes tuition, room and board, meal plans, and other costs like books, equipment, and lab fees.
  • A 529 plan could help you save for college.
  • Financial aid, scholarships and grants can greatly reduce the cost of college. 

You may know that college is part of your future or your child’s future. That’s exciting. What’s not as exciting is figuring out how to pay for it.

College can be expensive. According to the Education Data Initiative, tuition and fees can cost more than $27,000 on average annually at public in-state schools and more than $58,000 for private schools.

But there is a way to help ease the financial burden: smart planning.

Let’s look at a few practical steps you can take to plan for college expenses:

Understand the costs. College costs include much more than just tuition (though that’s plenty expensive). You’ll also have costs like room and board and other expenses like a new computer, books, and miscellaneous fees. You may also have transportation costs if the school is out of state. So, be sure to factor in all of these expenses so you have a clear picture of what you need to plan for.

Save early and often. The best way to afford college is to save. It’s never too late or too early to start saving. If you’re a parent, a 529 plan can be a smart way to save, which offers tax-deferred growth and tax-free withdrawals for qualified college expenses (consult your tax advisor to learn more).

To make saving easier, arrange to have automatic deductions from your paycheck or have money transferred from your checking account to your savings account.

Apply for financial aid. Financial aid can help you greatly reduce the cost of college through scholarships, grants, work study, and federal loans. To apply, you must complete the FAFSA.

Look into private loans. After you’ve exhausted all federal loan options, there may be a gap between the net cost of college and your savings. That’s where private loans, available from private lenders like Brazos, can help. To qualify for a private loan, you’ll generally need good credit or a co-signer with good credit.

Rates, fees, and repayment terms can vary from lender to lender, so be sure to shop around.

Brazos Can Help Make College Planning Easier

For more than 40 years, Brazos has helped make college costs more affordable for parents and students. As a Texas non-profit lender, we offer competitive rates on private and refinance loans that can help you save. Contact us to learn more.