How to Pay Less for College—What You Need to Know
UpdatedJun 13, 2025
- You can graduate college debt-free.
- Save for college with a 529 savings plan.
- Pay less with community college, in-state schools, and tuition reimbursement from employers.
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It’s no secret that student loan debt is at an all-time high. In fact, the total amount of outstanding student loans in the U.S. is more than $1.6 trillion. If you have a child nearing college age, you may be wondering how you can help them pay for college and minimize the amount of loans they’ll have to take. To assist you, we’ve put together some tips on how to pay less for college so you can help your child prepare financially for this next chapter.
Look at in-state schools
To begin with, an in-state school will almost always be less expensive than an out-of-state school. For example, if you live in Michigan and your child attends University of Michigan, their tuition will be around $15,558 per year. On the other hand, if you live in California and your child chooses the same school, they’ll have to dish out $51,200.
Some schools cap out-of-state tuition so that it’s not so much more expensive than in-state. For example, schools who participate in the Western Undergraduate Exchange (WUE) cap out-of-state tuition at 150% of in-state tuition. So, if your child does want to go to college out-of-state, it could help to look at WUE schools and others who have similar limits.
Consider community colleges
Many people who have wondered how to pay less for college have ultimately turned to community colleges. Community colleges are far more affordable than four-year colleges and universities. So, you may want to encourage your child to start at a community college and eventually transfer to the college or university of their choice.
Community college provides an extra benefit if your child wants to attend an out-of-state university. Going to a community college in that same state would give them the opportunity to gain residency there so they could qualify for in-state tuition when they transfer to their desired university.
Apply for scholarships, grants, and tuition waivers
It’s so important to keep in mind that student loans aren’t the only assistance available for students and their families. While applying for scholarships, grants, and tuition waivers takes time and effort, it almost always pays off.
Also, less well-known schools may give better financial aid packages to attract good students. So, to help minimize your out-of-pocket costs, you could suggest that your child consider alternatives to expensive schools unless they can land scholarships for most of the cost.
Look for jobs that offer tuition reimbursement
Of course, your child can help carry some of the financial weight of college as well. Fortunately, some companies reimburse their employees for attending college. If you believe your child can juggle a job and college at the same time, encourage them to do some research and find jobs that offer partial or full tuition reimbursement.
Start a 529 savings account
Although it’s better to start a 529 college savings account when your child is young, there are still benefits to starting one even if your child is older. Not only do 529 plans come with federal tax-free growth and withdrawals for education-related expenses, your state may also offer a partial or full tax deduction.
As you explore these options, consider involving your child. Including them in the process of figuring out how to pay less for college should help reinforce how valuable it is, and could help them learn important financial skills. That way, if they end up taking on some student loans, they’ll be all the more prepared to handle them successfully.
Improve your money management skills
A crucial part of saving for your child’s college education is getting a better handle on your finances today. Luckily, learning how to deal with debt, money, and planning for your and your child’s future doesn’t need to be hard. At Freedom Debt Relief, we’ve developed a simple to follow guide to help you find the tools you need to move to a better financial future. Get started by downloading our free guide right now.
Learn More
How to Create Your 2020 Financial Plan (Freedom Debt Relief)
How to Find and Secure Scholarships for College (U.S. News & World Report)
Debt relief stats and trends
We looked at a sample of data from Freedom Debt Relief of people seeking a debt relief program during May 2025. The data uncovers various trends and statistics about people seeking debt help.
Age distribution of debt relief seekers
Debt affects people of all ages, but some age groups are more likely to seek help than others. In May 2025, the average age of people seeking debt relief was 53. The data showed that 24% were over 65, and 14% were between 26-35. Financial hardships can affect anyone, no matter their age, and you can never be too young or too old to seek help.
Personal loan balances – average debt by selected states
Personal loans are one type of installment loans. Generally you borrow at a fixed rate with a fixed monthly payment.
In May 2025, 44% of the debt relief seekers had a personal loan. The average personal loan was $10,718, and the average monthly payment was $362.
Here's a quick look at the top five states by average personal loan balance.
State | % with personal loan | Avg personal loan balance | Average personal loan original amount | Avg personal loan monthly payment |
---|---|---|---|---|
Massachusetts | 42% | $14,653 | $21,431 | $474 |
Connecticut | 44% | $13,546 | $21,163 | $475 |
New York | 37% | $13,499 | $20,464 | $447 |
New Hampshire | 49% | $13,206 | $18,625 | $410 |
Minnesota | 44% | $12,944 | $18,836 | $470 |
Personal loans are an important financial tool. You can use them for debt consolidation. You can also use them to make large purchases, do home improvements, or for other purposes.
Tackle Financial Challenges
Don’t let debt overwhelm you. Learn more about debt relief options. They can help you tackle your financial challenges. This is true whether you have high credit card balances or many tradelines. Start your path to recovery with the first step.
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Written by
Anna Baluch
Anna Baluch is a freelance writer who enjoys writing about all personal finance topics. She’s particularly interested in mortgages, retirement, insurance, and investing.
Personal Finance
Personal Finance
