In 2024, The Princeton Review published an article listing “The Best 389 Colleges”. Eight of these institutions including Yale, Washington University, New York University and Brown have a sticker price of more than $90,000 for the 2024-25 academic year.

This sticker price will touch $100,000 by 2026, given an average increase of 4 per cent in tuition fees and other expenses, according to an estimate by Bryan Alexander, a senior scholar at Georgetown University.

For the uninitiated, a sticker price is nothing but the annual college education cost. This includes tuition fees, travel, accommodations, books and other miscellaneous campus costs.

To make things worse, President Donald Trump’s push to close the US Department of Education (DOE) could further lead to higher education costs. Presently the department oversees $1.6 trillion federal student loans of millions of Americans. It also awards annual grants of nearly $120 billion to students pursuing higher education.

As a parent or a student on their way to pursue higher education in 2026 or consecutive years, what are your options? Here are 5 ways to help you finance your education without emptying your pockets or drowning in student loan debt.

1. Reduce Costs Before Applications

Students can start preparing for reduced costs while in high school. Students can qualify for a National Merit Scholarship by doing well on the PSAT. One can also earn college credit by scoring well in AP courses. There is a fee of around $94 for AP but it is a fraction of the cost of taking the equivalent college course.

Also Read:How to Build Credit in College

Another option is to check if your state has a free in-state community college option. The credits from community colleges can be transferred to state universities. In the case of private universities, it is worth checking if they will accept the credits.

2. Begin with FAFSA

Free Application for Federal Student Aid or FAFSA is your door to all federal loans, financial aid and grants. Complete your FAFSA, for need-based or merit aid. The DOE has already begun 2025-26 FAFSA applications. FAFSA can aid you in several ways, from helping you get federal loans with a higher chance of getting loan forgiveness to getting lower interest rates on federal student loans.

To qualify for FAFSA, one needs to be a resident of the United States of America, have a valid Social Security Number and have a satisfactory academic record.

On completing FAFSA, students can also apply to the Federal Work-Study programs (offered by 3,400 colleges and universities). This can provide additional financial aid.

In addition to the FAFSA, one can also look into the College Board’s CSS Profile form provided by more than 250 private colleges. The form will ask you to provide details like parental assets and liabilities.

3. Smart Planning & A Practical Investment 

It is no secret that most financial aid goes to students with exceptional academic records. Only a fraction or 25 per cent of the cohort in America receive merit-based financial aid. High GPA, SAT and ACT scores determine if you or your child will be burdened with student debt. 

To maximize financial aid opportunities, and research schools the child has a strong chance of ranking among the top applicants and thereby bagging financial grants or scholarships. 

Many parents choose institutions that serve as ‘safety nets’ or promise a high return on investment (ROI). However, when students are accepted, families often struggle with unaffordable tuition, leading to massive debt.

A better approach is to opt for colleges that are financially feasible while also aligning with the student’s talents and interests. Carefully select schools that balance affordability and academic fit. 

4. Opt for Early Graduation

Several colleges across America offer flexible graduation timelines, allowing students to complete their degrees in four years instead of three. Graduating sooner can significantly reduce tuition and living expenses while enabling students to enter the workforce earlier and repay debt faster.

Some institutions also offer combined undergraduate and graduate degree programs that can be completed in five years, further streamlining education and career advancement.

However, these accelerated paths come with challenges, such as heavier course loads and fewer breaks. Students should carefully weigh the benefits against the demands to determine if an expedited program aligns with their academic goals and personal well-being.

Also Read:How to Pay Off Student Loans as Fast as Possible

5. Reduce Additional Costs

Beyond tuition, additional costs such as housing, transportation, and parking can add up quickly. Students should explore different housing options and compare prices to find the most cost-effective choice. For instance, living closer to campus can significantly reduce transportation expenses over time.

For those who need to commute, opting for public transportation—often free or available at discounted student rates—can be a budget-friendly alternative to owning a car, which comes with fuel, maintenance, and parking costs. Thoughtful planning in these areas can lead to substantial savings throughout college.

Navigating college costs can be overwhelming, but with careful planning and informed decision-making, families can ease the financial burden. The key is to start early, explore all available financial aid options, and prioritize institutions that offer both academic and financial value.

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