The vast majority of students receive federal financial aid in the form of grants and student loans, and rarely end up paying the full "sticker price" of tuition and fees. After grant funding, first-year full-time students at in-state universities paid $3,230 on average for the 2020-21 school year.
How much a student will actually pay for a college degree will depend on many factors, such as their income and whether or not they already hold a degree. Students who don't receive enough grants to cover college costs can apply for scholarships before taking out loans, although this can sometimes affect how much aid a school awards.
While many students do qualify for grants and other forms of aid, tuition is still a significant factor in selecting which school to attend. Americans currently owe $1.5 trillion in student loan debt, and even those who receive enough aid to cover education expenses often still need to take out loans to pay for living expenses. Options for reducing your expenses include:
Consider attending community college. In many states, community colleges are more affordable than four-year universities, making them a cost-effective choice for earning an associate degree or fulfilling many of the lower-level requirements for an online bachelor's program. However, if you plan to transfer to another college for a bachelor's degree, make sure the school you choose accepts credits from the community college you've selected.
Choose an affordable four-year college. There is a vast range of tuition fees at colleges and universities, which vary based on the type of school and reputation. However, many reputable, accredited schools fall in the lower end of that range. Our list, for example, features more than 30 schools that charge annual tuition rates under $10,000.
Apply for financial aid. Even if you think you are not eligible for financial aid, consider submitting a Free Application for Federal Student Aid (FAFSA) form. It is free to apply, and you may receive some of the $242 billion given out in financial aid each year. According to the College Board, the average award amount for undergraduate students is $14,940 and for graduate students $27,310.