The traditional perception of college—four years of residential education at an expensive university—is gradually changing. Due to a combination of factors, including increased government funding, innovative online learning, free community college programs, and a growing focus on workforce-ready skills, college planning is now a much less stressful event.
At the same time, recent changes in the U.S. federal government, particularly within the Department of Education which oversees federal student loans and grants, have introduced a layer of uncertainty. Many families are expressing concern about how shifting policies could impact access to college funding. Staying informed can help parents and students prepare for both new opportunities and potential challenges.
This article explores the changing landscape of higher education and how families can rethink their approach to college planning.
College Is Actually Getting More Affordable
Let’s start by taking a look at some of the factors influencing lower college costs.
State-Funded Initiatives
- Free community college: The goal of these initiatives is to provide eligible students with free community college tuition. Certain programs target particular groups, including students from low-income families or those seeking in-demand careers.
- State-funded tuition assistance programs: Students enrolled in public colleges and universities in their state are eligible for financial aid through state-funded tuition programs. Their eligibility conditions are most often based on income.
Shifting College Landscape
- The rise of online learning: Compared to traditional on-campus programs, online learning provides reduced tuition expenses and increased accessibility and affordability. Many students find flexible schedules to be a more practical alternative since they can balance their education with employment and family commitments.
- Growth of micro-credentials and alternative pathways: The growing accessibility of micro-credentials (like certifications and badges) and alternative pathways (such as apprenticeships and trade school programs) provides students with more varied and potentially less costly paths to enjoying fulfilling careers.
Changing Student Demographics
- Increasing diversity and emphasis on affordability: With a greater proportion of first-generation college students, low-income students, and students from underrepresented minority groups, the student body is growing more diverse.
College Planning Tips for New Lower Attendance Costs
Now let’s dive into some ways you can make the most of more affordable higher education opportunities.
Research State-Specific Programs
- Investigate state grants, scholarships, and tuition assistance programs: Thoroughly examine all of your state’s financial aid options. These could include tuition aid programs, grants, and scholarships provided by the State that can drastically lower the cost of college. Financial planner Jesse Kuusisto advises, “Recognizing that there could be both Federal and State opportunities (depending on location) may expand your options for support.”
- Utilize state education websites: For the most up-to-date information on available financial aid programs, visit your state’s department of education website. Typically, these websites offer comprehensive details about program administrators’ contact details, application dates, and eligibility requirements.
Evaluate Online Learning Programs
- Evaluate online programs carefully: Carefully Investigate and assess online programs, taking special note of elements like accreditation, the school’s reputation, the caliber of education, and the accessibility of student support services (such as tutoring and academic advice). According to Jesse, “A good fit is important for directing success in this major investment in yourself.”
Consider Alternative Pathways
- Explore community college, trade schools, and apprenticeships: Research alternate options for pursuing higher education, such as apprenticeships, trade schools, and community colleges. These options are most often less expensive and time-consuming than typical four-year degrees, and they can offer useful training and skills for specific professional goals.
- Align education paths with career goals: Make sure the education path you select is in line with your chosen profession. Research industry needs and career options, and select programs that provide the necessary skills and training for their desired career path.
Prioritize Financial Aid
- Complete the FAFSA: As soon as you can, fill out the Free Application for Federal Student Aid (FAFSA). This critical step makes it possible to apply for federal work-study, loans, and grants, all of which can significantly lower the overall cost of college. “Even if you don’t think you will qualify,” says Jesse, “this is still important. There are Federal loans that nearly everyone qualifies for. Many lenders find the Federal government to be a more forgiving lender than perhaps they would with a private alternative.”
- Explore private scholarships and grants: Actively look for private grants and scholarships from a range of sources, such as neighborhood associations, companies, and organizations. To find potential opportunities, utilize internet scholarship databases and tools. Jesse explains, “People often have sticker shock when they see the advertised costs of private colleges, but the truth (at least in my experience) is that the true cost is often far less due to scholarships that most applicants qualify for. Sometimes this even means an end price comparable to a major public university.”
Get in Touch!
College planning is an evolving landscape. A smart way for you to leverage the latest developments is to consult a professional financial advisor who can help you find the most affordable and effective path to higher education.
Laurel Wealth Planning LLC is here to help you prepare for your children’s or grandchildren’s educational needs.
To schedule a complimentary meeting, email laurel.wealthplanning@laurelwealthplanning.com or call (952) 854-6250. Find out if the Laurel Wealth Planning team is the right financial advisor for you based on your wants and needs.
About Jesse
Jesse Kuusisto is a Wealth Manager at Laurel Wealth Planning, a full-service, fee-only firm based in Minneapolis, Minnesota. As a skilled CERTIFIED FINANCIAL PLANNER® professional, Jesse excels at bridging personal and financial goals, developing client relationships, and properly implementing investment recommendations. Joining the LWP team in 2017 as an Associate Wealth Manager, he was promoted to Wealth Manager in 2021 and added the role of Investment Operations Manager in 2022. He shares, “I enjoy collaborating with clients to create a financial plan as well as implement it. It is the perfect way for me to utilize my analytical mind and help people at the same time. The high standards to which Laurel Wealth Planning holds itself give me a strong sense of pride in the work I do. I feel my values align with those held by the individuals at Laurel Wealth Planning and I am honored to be a part of the team.”
Jesse’s passion for wealth management began in high school during a stock market simulation. He graduated with honors from Augsburg College, earning a Bachelor of Arts in Finance with a minor in economics. While in college, he was the Accounting/Finance chair for the Augsburg Business Organization and captain of the track and field team. Outside of work, Jesse enjoys staying fit, spending time outdoors, and following Minnesota sports, particularly football. He values close relationships with his family, including his twin sister, and stays connected with friends through fantasy football. To learn more about Jess, connect with him on LinkedIn.
The foregoing content was prepared by Indigo Marketing Agency with verbiage, opinions and/or financial commentary input provided by Laurel Wealth Planning.
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