On my post titled More Great College Savings Tips -- Save up to 50% Off College Costs, I had a couple great money saving tips and a warning from three commenters that I felt were worth sharing with all of you. Here's the first money saving tip:
I know two different people who used real estate investing to pay for their college expenses. Each bought a house to live in and rent out, which allowed them to live at no cost, as well as have cash flow for bills, books, etc. One had parents help to buy, one used college loans to buy the house (as well as two others I believe). Each was able to sell their homes at the end to pay off all loans, etc. and made money to move in life with. No surprise both are hugely successful today. Interesting point -- creating assets to pay for expenses.
I've heard of people doing this as well -- and back when real estate was strong, it seemed like a great idea. Today? It probably depends on the local economy as well as buying the right house. In some ways college towns have a constant demand for housing, so even if you bought a house and were "stuck" with it for some time, it's likely you could rent it out while waiting for it to be sold.
Next, a tip I really like:
My wife and I saved 50% on my last two years of college. How?
I worked full-time for the university, and took 10 hours of classes on a special work program. The best part was that each year my discount rose by 5%. So if I could have stayed there 10 years, I (and my immediate family) would get free tuition!
I had an assistantship in grad school that paid all my tuition and gave me a stipend of $300 a month (which was a fortune for a student). It's a great way to save a bundle on college costs.
Finally, here's a warning in reference to my tip on going to a community college, then transferring to another, "name" school to graduate:
If you really want to do the final step though (Finally, go to the college of your choice for a year or two to graduate with a "name brand" college degree), you really need to plan the whole process out in advance as many colleges do not accept a lot of community/junior college credits as the workload is not comparable to that of their system.
If it really is, you can usually prove it and get credit by showing the syllabus and coursework, but, especially for upper level courses, it often is not. And, even when they give you credit, you should assess how prepared you really are.
I knew several people who got burned by starting at community college and then transferred to my (very well regarded) public university. Not only did many of their credits not transfer so most started with a year of credit vs the two they expected, but they struggled in many courses, even though they were "repeating" as they hadn't been given credit. I tutored quite a few who were, frankly, unprepared, even after two years of community.
This is a great point. If the credits don't transfer, you've lost money and time. As I noted in Save Big on College: College for Half-Price:
The key -- make sure the credits earned will transfer. Look for an articulation agreement between the two schools -- the community college and the college the student will eventually graduate from. Here's what Money Central says on this topic:
An articulation agreement specifies which community-college course credits will be accepted toward a bachelor's degree at the four-year college or university. It also outlines scholarship requirements and specifies what kind of grades a student must achieve to transfer to the four-year school as a junior.
Articulation agreements between two-year and four-year colleges are quite common. "We can really guarantee that you'll enter as a junior and your credits will transfer," says Kimberly Iapalucci, director of public relations at the Community College of Philadelphia. "We call it a seamless transition."
Obviously, you need to do your homework in advance, but it's well worth the time and effort -- it could save you a bundle of money!
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