Planning Strategies

Closing in on higher education

“College is around the corner — what options do I have to pay for it now?”

If you’re in high school, the time has come to really start thinking about where you want to go to college — and to consider how you and your family will pay for it.

You still have time to put aside some money to pay for college and avoid paying as much in loan interest later. The sooner you begin understanding and preparing for the financial requirements of college, the more options you’ll find to help pay for it.

Identify potential careers and colleges

Discover the path that’s right for you. What jobs or careers interest you? Continue your extracurricular activities, as admissions officers are looking for such activities when considering students for admission. Keep participating in academic enrichment programs, summer workshops and camps with specialt focuses such as music, arts and science, to help you refine your interests.

Will you need a two-year or four-year degree? And which Texas schools offer a program or degree plan that interests you? Find out how much those colleges cost . Or look for a school that offers a wide variety of study options, so you can narrow your choice after getting on campus.

If you explore your interests, skills and abilities early, you can focus on the courses you need for your chosen degree and avoid spending time and money on courses that aren’t relevant to your goals. Once you have a degree, your world of choices can expand into many opportunities and career paths.

Children in families with as little as $3,000 in savings have greater odds of graduating from high school than children in families without savings.

Start a savings account or tax-free savings plan

Figuring out how to pay for college can be challenging. Did you know that if you save just $25 a week, or $100 a month, starting with your freshman year in high school, you’ll have more than $5,000 by the time you graduate?

With a tax-free 529 savings plan such as the Texas College Savings Plan or the LoneStar 529 Plan, you can withdraw from your account for qualified college expenses and pay NO taxes on your savings. By using a tax-free 529 account in the example above, you’ll save an additional $137 you can use for books, etc. versus if you used a regular taxable savings account.

High-school freshman also have time to pre-pay their first year’s tuition at many Texas four-year colleges, or most of their tuition at a community college. On average, tuition for in-state residents for one year (enrollment in 15 credit hours in both fall and spring semesters) costs around $5,750 per year at a Texas university or $1,650 per year at a Texas community college according to CollegeforTexans.org.

Research additional ways to pay for college

There are many ways to earn college credit and many sources of college funds and financial aid.

To get a head start, ask your high school counselor about dual credit programs and credit by examination. Begin searching for scholarships and grants and work with your counselor to identify the loans and other aid available. Financial aid can make up the difference between what your family can afford to pay and what college costs, so when you’re a senior, apply for the Free Application for Federal Student Aid (FAFSA) online and learn about the different types of financial aid including scholarships, grants, loans and work-study. There are also many federal tax credits and other programs available to students and their parents once you begin paying for college.

Find tools for adults seeking higher education opportunities
Start saving today for just $25