Cost is often the deciding factor for students choosing between enrolling at a community college or four-year college.
The average tuition and fees for full-time, in-district students at public two-year colleges in 2022-2023 was $3,860, according to the College Board’s 2022 Trends in College Pricing report. The same year, the average in-state tuition and fees for full-time undergraduate students at public four-year colleges was $10,940, while out-of-state tuition and fees was $28,240.
“The sticker price of community colleges is much lower than most other types of institutions, so that is really appealing to students,” says Jill Desjean, senior policy analyst at the National Association of Student Financial Aid Administrators.
[Read: How to Pay for College Using These Overlooked Strategies.]
But the total cost of attendance — which averaged around $19,000 in 2022-2023 for in-district students at public two-year schools, according to the College Board report — goes beyond tuition. Community college students should also budget for the price of food, transportation and books and supplies.
In most cases, community college students are eligible for the same type of federal and state financial aid as undergraduates at four-year universities. However, institutional aid resources — those provided by the school itself — are less common at community colleges than at their four-year counterparts, says Daniel Sparks, senior research assistant at the Community College Research Center at Teachers College, Columbia University in New York.
Here are five ways to fund your community college education.
Grants
Grants, a type of financial aid that does not need to be repaid, are typically awarded by the federal government, states or colleges. Several federal grants are available to community college students, including the federal Pell Grant and the Federal Supplemental Opportunity Grant, or FSEOG. To be eligible, students must first complete the Free Application for Federal Student Aid, commonly known as the FAFSA.
Awarded by the U.S. Department of Education, the Pell Grant is need-based financial aid that helps eligible low-income students pay for educational expenses, including tuition and fees, housing, and books and supplies. The maximum award for 2022-2023 is $6,895 and the minimum is $692.
Similarly, FSEOG — often awarded to Pell-eligible students — is for undergraduates with exceptional financial need. Students can receive between $100 and $4,000 a year depending on eligibility, when they apply and the availability of funds at a school. This grant is not offered at all institutions, so students should check with their school’s financial aid office.
“It really is important for students to first and foremost take advantage of the state and federal grant aid availableto them before they start looking into other scholarship options or weighing other levers to afford college, like taking out and borrowing money,” Sparks says.
Scholarships
Community college students may be eligible for need-based or merit-aid scholarships, which, like grants, don’t need to be repaid. Scholarships are typically awarded by states, colleges and local businesses or charities.
High school students can use their guidance counselor as a resource, especially to find local scholarships.
Be sure to start looking early, as many scholarship applications are available before a high school student’s senior year, says Brock Jolly, founder and financial advisor at the College Funding Coach, a company that offers college financial planning assistance.
“Worst-case scenario, if a scholarship (application) isn’t available until your senior year, you can at least do your homework and see when the deadlines are,” he says. “You can see what their essay questions might be because oftentimes, these scholarship programs ask the same questions year after year. So you’ve got, in essence, an additional year to get prepared for that scholarship.”
[READ: What to Know About Transferring From a Community College]
Potential community college students can also search online for scholarships on databases such as Fastweb.com, Cappex.com, Unigo.com and U.S. News Scholarship Finder. It’s important to be specific in your search, Desjean says.
“If you’ve got any sort of special talents, if you’re affiliated with any special groups or have anything that distinguishes you from other people, it might be better to say, ‘I’m looking for a scholarship for people who are interested in going into nursing,’ for example, as opposed to just Googling college scholarships,” she says. “You might be able to get some more precise hits on things that might actually be more applicable to you.”
Promise Programs
Promise programs are institutional, local or state initiatives that promote free college for students through scholarships, reductions in tuition or a combination of grant programs, Sparks says.
There are nearly 400 promise programs across 48 states and Washington, D.C., for students planning to enroll at a community college or four-year institution. But many come with caveats, including academic or family-income requirements. Some require students to stay in the area and participate in the local economy or workforce for a certain number of years.
The Arkansas Future Grant, for instance, covers tuition and fees for up to five semesters at qualifying public colleges in the state. To be eligible, students must have graduated from an Arkansas high school and be enrolled at an approved institution in a program that leads to an associate degree or certification in a STEM program or regional high-demand field. Grant recipients must complete at least 10 hours of community service each semester, receive monthly mentoring, live in the state for three consecutive years and be employed six months after earning a certification or associate degree.
“You just want to make sure that you’re doing your research on what the requirements are because they really do vary” by program, Sparks says.
Federal Loans
Community college students are eligible to receive federal student loans, but not all two-year schools participate in those programs.
“One of the big drivers behind going to a community college versus a four-year school is the potential to save money and not incur debt,” Desjean says. “A small amount of debt is OK. Too much debt is not, especially if you are using community college as a stepping stone toward a next-level degree.”
[Read: Everything You Need to Know About Community Colleges — FAQ.]
If borrowing, students should be aware of aggregate borrowing limits.
“You may not want to borrow too much for your community college program and then not be able to borrow when you enter your four-year program because you’ve already bumped up against those limits,” she says. “So kind of hold on to your eligibility until you really need it.”
Before borrowing, students should also consider how much time it will take to complete their degree, their potential income after graduation and all their options in terms of loan type and repayment plans.
“Time is a barrier to many of our students’ academic experience,” says Jee Hang Lee, president and CEO of the nonprofit Association of Community College Trustees. “The longer you take, life barriers do get in your way. The odds of you completing your associate degree by taking one course a semester is not necessarily something that will transpire. If a student desires to increase their (course) credit load by borrowing, that is something that they should be thinking of.”
Employer Tuition Assistance
The majority of community college students work while taking classes, according to a 2020 report by the Center for Community College Student Engagement at the University of Texas at Austin, and some work may come with financial benefits beyond the paycheck.
Some companies, such as a number of fast-food restaurants, offer tuition assistance to help employees pay for their college degree. Program requirements vary and may be capped at a certain dollar amount, but employees are typically reimbursed after completing a semester or class.
Trying to fund your education? Get tips and more in the U.S. News Paying for College center.
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5 Ways to Pay for Community College originally appeared on usnews.com
