Alternative Ways to Help Pay for College

Let’s face it; the news on college costs is mighty grim. Many colleges and universities have been forced to raise their tuition prices and cut back on financial aid programs due to dwindling state and federal aid, lower endowments and drops in fund raising. There are, however, plenty of creative ways for students to keep their college dream on track.

1. Accelerated Degree Programs. An accelerated degree program is a great option for a student with a definite career goal. The classes, while intense, can really help to move up the student’s graduation date and he can receive a degree at a much lower price. Many colleges offer bachelor's degree programs in three years instead of four.

2. Military Service. Students who want to serve their country by joining the military can earn big tuition credits. Those who want to serve at home can join Americorps (www.americorps.org).

Students spend one year working on projects like tutoring inner-city kids or helping with hurricane relief. They get an annual stipend (usually $10,000) to cover basic living expenses. After they finish, they receive a $4,725 grant toward tuition if they enroll in college within seven years.

The Peace Corps, AmeriCorps' international cousin, has more than 7,000 volunteers working around the world in fields such as business development, health, agriculture and education. In return for a two-year commitment, you can defer your federal student loans. Perkins loan borrowers may have 15% of their loans forgiven for each year of service.

3. Pinch Pennies. Familieswilling to make some serious lifestyle sacrifices -no more cable TV, restaurant meals, fancy lattes, vacations, and the like can typically generate several thousand dollars a year in savings.

4. Attend a Community College. Community colleges continue to be an education bargain, with tuition up 5.4 percent. A commuter student who lives at home would pay less than $3,000 for tuition and books, just $143 more than last year. The student, however, needs to plan carefully to ensure all his courses transfer to a four-year school.

5. Skip a Class or Two. Many colleges give credit for passing tests such as the College Level Examination Program (CLEP) or Dantes Subject Standardized Tests (DSSTs). For less than a $100 testing fee, a student can get credit for a college course without having to take it, thus saving tuition.

CLEP tests (www.collegeboard.com/clep) which are produced by the College Board, can replace 35 courses ranging from Calculus to Spanish. The tests cost $55 to $80 each, depending on location, and are accepted by 2,900 accredited colleges. The College Board sends the results to one school of the student's choice for free, but charges $20 for each extra report sent out. DSSTs (www.getcollegecredit.com) are accepted at 1,900 schools and cost $60. That amount includes the cost of sending the score to one school; additional copies are $20 each. There are 37 different DSSTs, many of which cover introductory college courses. But some DSSTs can replace career-oriented courses.

6. Tuition-Reciprocity Agreements. Students from Minnesota, for instance, can attend schools in Wisconsin, South Dakota, or North Dakota for basically the in-state price. Other states have similar deals for specific disciplines. Some states partner with one another to provide tuition discounts to students who want to pursue a major not available in their home state. To find out more about the tuition-reciprocity agreements, check out www.collegeboard.org.

7. Work Off Debt With Community Service. Recent college grads can cancel part or all of their federal-education debt by working in public-service jobs (lower-paying professional jobs that serve low-income communities) or by volunteering.

Loan-forgiveness programs are available to everyone from teachers to nurses to young doctors and lawyers. Teachers who work in low-income elementary or secondary schools may be able to cancel as much as $5,000 of their federal Stafford loan debt.

The National Health Service Corps offers loan-forgiveness programs to physicians, nurse practitioners, physician assistants, midwives, dentists, dental hygienists, psychologists and therapists who work for two years in communities in great need of health professionals.

Similar programs are available to attorneys who pursue public interest careers. About 50 law schools offer loan forgiveness or loan-repayment assistance programs. The National Association of Public Interest Law has a list of the schools on its Web site. The site also lists state and employer loan-repayment-assistance programs.

8. Family & Friends. It may be one of the hardest things to do, but the student could ask relatives and friends for help with those dreaded student loans. For example, in lieu of Christmas and birthday presents, the student could ask for money to help make those student loan payments.

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