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Sticker Price Is $100,000/Year : 5 Ways to Make College More Affordable

Mar 04,2025 · 5min read · 77 views

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.

Also Read:Vola Can Help Your Financial Goals With Three Easy Steps

What Is a CD Ladder? Pros, Cons, Alternatives

Jul 02,2024 · 4min read · 465 views

A certificate of deposit (CD) ladder is a savings instrument for investing your lump sum of cash across various certificates with different maturities. You will earn a fixed interest rate over some time, allowing you to maximize your earnings on money lying in your bank account.

Once you complete the maturity, you can take the capital and reinvest it in another CD. While building the ladder, your CDs will mature in rotation. Read the article to know how to build a CD ladder, and its advantages and disadvantages.

Steps to Build a CD Ladder

You will need a plan before you start working on the ladder. The best part is that you can begin with as little as $100. However, decide the amount based on your income and how frequently you require penalty-free cash.

Since the CD ladder has multiple rungs, you can build the CD ladder of any height. For example, two CDs will give a short ladder and 10 CDs, a taller one. An ideal CD ladder should balance money and investment goals.

Let's say you want to invest $2000 and want a multi-year-ladder, here are key steps you need:

Step 1: Open Different CDs

Maturity dates range from three months to 5 years or more. Instead of putting the entire amount in a 4-year CD, divide the amount equally into 4 types:

$500 in a 1-year CD

$500 in a 2-year CD

$500 in a 3-year CD

$500 in a 4-year CD

Alternatively, you can go for a 3-month interval plan (3, 6, 9 and 12 months) depending on your need for cash.

Make sure you do sufficient research on CDs with the highest interest rates possible to maximize your earnings. Also, you can purchase CDs from different banks, instead of putting all your eggs in one basket.

Compare CD terms, like opening deposit requirements, fees early withdrawal penalties, etc. Check if the CD issuer is insured through the Federal Deposit Insurance Corporation (FDIC). If you go via credit unions, they should have the National Credit Union Administration (NCUA) insurance.

Step 2: Reinvest CDs or Cash Out?

As your CD matures, you have two options - either reinvest the amount or cash out. If you reinvest, the ideal thing is to buy the next CD with the longest term, giving the highest interest rate. This way, you will have four new CDs maturing at your preferred intervals.

When the first CD matures, you can take the $500 and get another 3-year CD. Do the same with the other three maturities. At some point, your CDs will mature at various intervals, all earning interest.

Please note: in a volatile environment, your interest rates might fluctuate. Always keep an eye on your bank or credit union to see what they are offering.

Benefits to CD ladders

Typically, CDs have higher interest rates compared to most traditional savings accounts.

It is a safe investment instrument since the issuer is insured. FDIC insurance protects against losing up to $250,000.

It offers a steady income stream with minimal risk.

Rolling over your CDs on schedule will give you higher interest rates while reducing interest rate risk. For instance, you can take advantage of the rising short-term interest rates in your first round of investment. The matured amount can be invested into a new CD with a higher interest rate. In case, if the interest rates fall, you can still get the benefits of the stable and higher rates of long-term CDs.

There are very minimal or no monthly fees.

A CD ladder approach ensures a steady cash flow.

Cons of CD ladders

There is an inflation risk associated with CDs. Sometimes, you might get a negative return.

You might not have constant access to all your funds. You may have to pay a penalty if you cash in before the maturity period.

You will have to remember and monitor your maturing date as the bank will give a short-term window (7-10 days) before automatically renewing CDs for a similar term.

CD ladders do not always give you tax benefits. The earnings from CDs are taxable, but their principal sum is not.

Alternatives to a CD Ladder

Barbell CD Ladder: This strategy is a combination of short-term and long-term CDs, where one part of your investments provides liquidity and the other part offers potentially higher returns.

Bump-up CD Ladder: This strategy offers a one-time interest rate increase when the bank raises its CD rates.

Bullet CD Ladder: In this approach, you invest in various CDs, but all maturing on the same date. This is ideal for those having a specific goal such as buying a car, a house or taking a trip

Deciding if a CD ladder is suitable for you depends on your financial objectives. Generally, CD ladders are ideal for those seeking a safer investment option with predictable cash flows.