Dave Ramsey Team: 6 Ways To Save Money on College Costs
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Nicole Spector
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Molly Sullivan
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The cost of obtaining a bachelor’s degree is more expensive in the U.S. than it is anywhere else in the world. The price of tuition alone averaged $9,596 in 2022-23 — and that’s just among public universities; private colleges can be far more expensive. The staggering price of a college education can set people back financially for the rest of their lives. The average federal student loan debt is $37,853 per borrower, and outstanding private student loan debt totals $128.8 billion.
Saving money on and in college is crucial. We know some of the more obvious money-saving hacks — like trying to live at home if that’s feasible and getting a roommate and a microscopic living space if it’s not, but what else can you do to save money while getting a college education? The team over at Dave Ramsey’s site, Ramsey Solutions, recently tackled this question in a blog post and discussed how to save money in college. Here are six proven ways.
Give Community College a Chance
Community college can be frowned upon by college applicants eyeing prestigious universities. But the savviest students recognize that you can get an excellent education at a community college. They also know that it’s not forever. You can attend a community college for two years and then transfer to a four-year institution to finish up your degree. This is an excellent way to save money.
“You can save a lot on tuition by getting all of your general education requirements out of the way at a community college before heading to your school of choice, because the price difference is insane,” the Ramsey Solutions team wrote. “Seriously – a year of tuition at a private school is, on average, more than nine times the cost of a year of tuition at a community college!”
Consider In-State Schools
Some of the best schools in the country are state run and offer tremendously marked down prices to state residents. You should look into attending schools in your state before setting your eyes on out-of-state institutions.
“The average tuition at a public, in-state school is $9,750 per year, and the average tuition at a public, out-of-state school is $28,386 per year,” the Ramsey Solutions team wrote. “That’s a yearly difference of more than $18,000! If it’s an out-of-state private college, the tuition skyrockets even more.”
Always Ask About Student Discounts
Students of all ages should be milking student discounts wherever they’re available. Don’t be shy to ask any business you visit whether they offer a discount.
“Wherever you go, don’t be afraid to flash that student ID and ask if there are any deals available,” the Ramsey Solutions team wrote.
Buy Used Books
There is no shortage of used textbooks and other literature you may need for college being sold on eBay or Amazon. Always look for the book you’re assigned to read there or in a local used bookstore, before buying it new at full price. If you can’t find a used copy of the book you need, see if you can rent the book from your campus bookstore instead of purchasing it.
“Even if you do have to use the campus bookstore, they’ll usually give you the option to rent instead of buy,” the Ramsey Solutions team wrote. “Definitely go with renting – you won’t need to go back and read your physics textbook once the semester is over.”
Look Into Which Tax Credits You or Your Parents Can Claim
Unless you get a full scholarship and can live at home, there’s no way not to spend a lot of money on a college education. However, Uncle Sam does provide a small relief here via tax credits.
“Two popular tax credits can help you or your parents (if they claim you as a dependent) save some dough when tax season rolls around: the American opportunity tax credit (AOTC) and the lifetime learning credit (LLC),” the Ramsey Solutions team wrote. “You can only claim one of these credits per student per tax year, and you have to meet the eligibility requirements to qualify for them. But if you do, claiming the AOTC or the LLC can help you recoup some of the money you spend on higher education expenses, like tuition and textbooks.”
Get a Side Hustle
The thought of working while in college may be daunting. Chances are, you’re already feeling overwhelmed by classes and homework. But bringing a side hustle into the picture can make a world of difference, financially. Look for something that you can do with flexibility. Certainly no one is saying you should get a full-time job while in college.
“Don’t underestimate the effect that a few babysitting or dog-walking jobs per week can have on your savings,” the Ramsey Solutions team wrote. “For a steadier income, a part-time job (no more than 15-20 hours per week) is a great idea too. Just don’t work so much that your grades suffer.”
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