Students and parents may desire a 4 year degree from a prestigious private college, but the average yearly tuition for private institutions is about $36,000 per year. Even 4 year state colleges run about $10,000 per year for in-state residents, contributing to the average $27,000 of debt students in the United States graduated with in 2011. These costs can make attending college at all seem like a daunting proposition, but attending a community college for 2 years can save a bundle on the total cost of a college degree while giving you the grades and experience to succeed in a big school. Average tuition at a community college is about $2,963 per year, or less than half of the cost of a 4 year state college. By attending community college for two years most students can save between $12,000 and $16,000 in tuition costs alone.
The first two years of college courses are pretty much the same at all colleges and universities. By taking these required or pre-requisite classes at a local community college, where per unit costs are less than $100 versus private schools that may charge $1,000, students can save money on both tuition and living expenses – money that will be better spent affording the more expensive college where they hope to obtain their degree. Additionally, students whose grades were not stellar in high school have an extra two years to improve their transcripts and become eligible for scholarships and grants from the college of their choice. Just remember that your essays or personal statement should describe your transformation, why you are focused on school, and what you hope to achieve by attending a school that offers a better education.
Community Colleges Help You Find The Right Path
Most high school graduates, about 80%, do not have a major in mind when they enter college. Community colleges allow students to try out different areas of study and decide what they want to be for the rest of their lives. Although college career counselors are available to assist students who are not sure of the best career path, since more than half of all students change their major during a four year degree (which can easily turn into a 5 years), it makes sense to try out different majors in less costly community colleges.
The average community college in the U.S. offers a wide range of studies and works with state 4 year colleges and universities when developing their curriculum so a transfer from a 2 year to a 4 year college is as seamless as possible. These community-based learning institutions also allow students to mature and achieve a measure of independence while retaining the safety net of home and family. Some students, away from home for the first time, lose sight of the objective in attending college and overindulge in social activities while their educations suffer.
The bottom line is that we are constantly exposed to new experiences in life that change our perspective, character, and personality. The first couple years out of high school are especially important in shaping a young adult, and although I do not recommend micromanaging your child/student, providing a supportive atmosphere conducive to their personal and professional growth will help them maintain a path to the best jobs of the future.
Saving For Your 4 Year Degree
Attending a community college gives students an extra two years to save for the balance of their tuition costs at the college of their choice. After all, this will be the name of the school on their diploma – how they got there is inconsequential to future employers, especially 10 years into a career. In order to get all the required courses for your chosen major, you can contact the college you plan to transfer to and ask what classes are required and transferable. Do not assume anything in this case, or you may spend hundreds or thousands of dollars and precious time on classes that will not count at all. Depending on the pre-requisites for your major, you may be able to transfer as many as 72. This can mean one less semester at the four year college and can save thousands of dollars in tuition costs.
Begin applying for scholarships and grants during your second year at community college. Your community college’s financial aid office can assist and you can find plenty of information about these programs online. Students from low-income families may qualify for a Federal Pell Grant, which can cover a large portion of your tuition and other expenses at a two year college. It will have to be renewed every year with the submission of the FAFSA, but assuming your family doesn’t have a sudden change of financial luck, should be a consistent grant. Students who complete their classes with the required grade point average (usually 2.5) do not have to pay back money from Pell Grants.
Furthermore, applicants can find hundreds of state-sponsored scholarships in addition to federal and private ones. Several states offer Hope Scholarship programs which are financed through state lotteries. While the amount of Hope Scholarships is usually fairly modest, every little bit helps when covering the cost of higher education. Check with your State Department of Education to see if you may qualify for a Hope Scholarship.
Working a part time job or at an internship while attending school can be the best way to bank the majority of the money you need for the last two years of your degree. If you can save about $500 a month, you may not have to rely on unsubsidized student loans to pay for your tuition. Graduating from a 4 year college will improve your income potential, but graduating with thousands of dollars in student loans can mean scrimping for years to pay off these debts.
Notice that I said “unsubsidized student loans” above. The difference between subsidized and unsubsidized loans is that interest on subsidized student loans are paid by the government while the student is in school. The interest on unsubsidized loans begins accruing immediately, and capitalizes on top of the principal, which accelerates growth of your interest costs. You should always apply for and accept subsidized loans before inquiring about unsubsidized loans. After all, if you or your parents can keep your cash and earn a return over the next couple of years, you will have more money and assets to pay back the subsidized loan.
Raising Your Grades
While you may have aspirations of attending a prestigious college or university, your grades in high school may not qualify you to even apply at these institutions. A two year community college gives you a chance to improve your GPA and demonstrate that you have developed the discipline and drive to earn a degree at a competitive school. In some cases, colleges may give preference to students with high GPAs from community colleges, since they have already shown their desire to succeed in getting their degree.
Community colleges sometimes offer scholarships that are only available to transfer students. Websites like FastWeb can help students search for community college scholarships and grants. In addition to lowering the expenses associated with a four year degree, high school students who were rejected by the college of their choice may get a second bite at the apple if their community college grades are high.
Final Word
Getting a degree from the best college is only the first step in securing your financial future. Student loans can be a crippling financial burden for years after graduation unless you minimize college costs. While some students may not be able to work while attending school full time, the best strategy, if possible, is to begin making payments on student loans while you are still attending school. This means you can begin your adult life with good credit and the least amount of debt possible. Community colleges have both social and financial advantages for students who are planning on a 4 year degree.
However, while an education may lead to a better job and higher income, college isn’t for everyone. Forcing an individual to enroll in school when the chances of him/her dropping out sooner or later are high will only lead to useless debt from student loans. If college is not the right option for you, consider this list of good paying jobs that don’t require a degree.
What are your thoughts on community college?
This article was written by Gary, a personal finance blogger and freelance writer at Gajizmo.com. Gary has worked at an internet company on their M&A team, as well as two private equity firms in California.
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I think community college is a great idea for your first two years. It is a great way to save money. If I had it to do over again, I probably would have chosen this route.
@GregatClubThrifty I didn’t even consider it when I went to college. With my hindsight being 20/20, I would consider doing it if I had to do it all over again.
I think going to a community college is a great idea, so much so that I did it myself. It saved me a truckload of money and helped me knock out all the basic classes.
@FrugalRules Nice! At the time, I didn’t even consider going to community college. I had a bad experience in a PSEO class (or a good one?) it was so easy I could have slept through all the classes and gotten an A : /
I think community college is an excellent option. If there had been a community college closer to my home (and I’d been a little more more in my thinking about community college-I wanted to go as far away as possible) then I would have seriously considered this option.
@StudentDebtSurvivor I didn’t even consider it when I was looking at schools. Looking back, I would have at least considered it knowing what I know now.
I went to community college one summer and was able to knock out 12 credits which was equal to around $15,000 at my private college. WOOHOO!
@SenseofCents I really, really, really should have considered doing this when I was going to school. Unfortunately for me, I did not even think of it as an option (not sure why), but I would recommend people at least think about it if they haven’t gone to school yet.
@SenseofCents What a beautiful system, right? How many people can say they effectively saved/earned $15,000 in a summer?
It sounds like a smart move, especially for low paying careers. If you want to be a teacher or a social worker, you’d better get the cheapest degree possible.
@RFIndependence This is a great point! I always wonder how the social work students at my college are ever able to pay back their loans. With that being said, your loan payback can be adjusted for income, as well as there is a program in the federal gov here in the USA where if you work for a nonprofit for 10 years, you will get the rest of your loans forgiven (in other words, subsidized).
@RFIndependence Agreed! I always advocate going to the best university you can, but I emphasize that it doesn’t make sense for low-paying careers.
I think community colleges are a great idea, and they can get you into some awesome universities. I went to a top 30 school, and there were many people who took part in agreements where if they got a 3.5 GPA or above at their cc, they were automatically admitted to the 3rd and 4th years at my university. Those people were geniuses. They paid very little to go to a cc and they they graduated with a degree from a great university. I wish I would have thought to do the same thing.
@BudgetBlonde I experienced the same thing. The crazy part is that they took easier classes at CC, walked in with a perfect 4.0 GPA and graduated with a much higher overall GPA than if they had gone straight to a 4-Year. Like you said, GENIUS!
In California, there are even programs where you do well in a CC and then apply for a specific program that will get you automatically accepted into a prestigious 4-year as well as medical or graduate school. In my opinion, I think that last part is unfair.
I think going into community college before you jump into a 4 year university is a great idea and a lot of people could save a lot of money doing it. Most high school kids don’t know what they want to do when they get out of college and spending 6 years in a full-fledged university will break the bank trying to find out. Great idea.
The community college route for 2 years is a great way to save money. I have nothing against going to one for generals. That being said, it tends to be easier to get into a 4 year program in year 1 (right after high school) rather than transfer in for year 3. I know my school took in very few transfers compared to new entrants straight from high school. If you could still go to a great school after 2 years at a CC, I would totally go that route.
If saving money is the goal, community college is a great way of saving money. If increasing your GPA and ultimately getting into a better college is the goal, again community college is a good choice. Getting a scholarship is prbably the best choice, but may not work for everyone.
@krantcents1 Great points. I like the “if-then” approach to put parameters on the situation, because community college isn’t right for everyone, nor is a big state or private school. And definitely agree – scholarships just make your life infinitely easier.
I went to a private school where tuition (just tuition) was $40,000 a year, but the only way I was able to graduate (well, I also graduated a year early) with only $13,500 in debt was to have gotten half a scholarship from the school and then another private scholarship. One of the benefits of working hard in high school. In fact, that should be an article “How To Make Tens of Thousands of Dollars in High School” and discuss how the scholarships you will get should be considered your deferred-income for hard work in high school.
I totally agree with the community college approach. In most industries, the school you attended has very little to do with anything and community colleges are usually more than adequate for general studies.
@ayoungpro Definitely agree with the “community colleges are usually more than adequate for general studies”, however, in many of the most competitive industries (investment banking, private equity, software/programming/development in Silicon Valley), the best companies are filled with grads from top tier universities. One of the best things I learned when graduating school was that recruiters and hiring managers are always looking for brand names on your resume – recognizable and prestigious schools and companies you’ve interned or worked for.
Not to mention that, some of the biggest advantages of these top tier schools are the people you end up meeting. Had Mark Zuckerberg not attended Harvard, would he have had the idea for Facebook? That is debatable, and regardless, I’m sure he would have done well in life, but I doubt he would ever regret having attended Harvard.
In the end, like you said, later in your career, the school you attended will have very little to do with your success, but early on, it can certainly make life a lot easier.
I think community colleges in the US are a great option versus attending a high profile university such as Yale or Harvard. Yes, it does depend on a person’s career path but from the cost perspective a person would definitely save a ton of money.
@TacklingOurDebt I agree that CCs are great options, but if anyone had a choice to attend an IVY or top ranked university versus a community college, I wouldn’t ever pass up the opportunity to attend one of the best schools in the country. UNLESS someone is trying to get an art degree. Even then, you never know who you end up meeting and networking with. Sometimes just being at the right place at the right time can make all the difference.