Failing one class does not mean you’ll automatically lose access to federal financial aid. But these funds do have academic eligibility requirements, as outlined in your school’s satisfactory academic progress (SAP) guidelines. So if you fail to meet the SAP requirements set by your school’s financial aid office, you could be cut off from future aid.
Federal aid — any aid you received by submitting the Free Application for Federal Student Aid (FAFSA) — could include need-based grants, work-study and federal student loans. These could be taken away if you violate your school’s SAP policy.
Each institution defines its own SAP policy, so requirements could vary. But many schools follow these guidelines.
Students must:
Maintain a minimum cumulative GPA between 1.6 and 2.0.
Complete at least 67% of all attempted credit hours.
Finish a degree in no more than 150% of the program’s average number of required credit hours. (If the degree typically requires 120 credits, you can only get financial aid for 180 credits — including classes that you failed or dropped.)
Contact your school’s financial aid office for information on your specific SAP requirements.
What happens if you fall below your school’s SAP requirement?
Before cutting your access to federal financial aid, a school may issue a warning and put you on probation. You may still have access to federal funds during this time, but your grades, for example, are expected to improve. If you do not achieve SAP standards by the conclusion of your probation, you will be unable to receive federal funds until you do. How long you’re ineligible for aid depends on how often the school evaluates student performance.
Some schools only offer SAP probation if you fail to meet academic guidelines due to extenuating circumstances, such as a death in the family or serious illness or injury. By submitting a satisfactory academic progress appeal, you can explain why you could not meet SAP standards and why you believe you will be able to meet those standards in the future. If your appeal is approved, you may be able to maintain financial aid eligibility while the college monitors your progress.
How to regain eligibility for financial aid
To regain access to federal aid, you’ll need to show your institution that you can make satisfactory academic progress as outlined by the financial aid office. You might need to:
File a satisfactory academic progress appeal. Depending on the school’s process, filing an approved SAP appeal could help you regain access to aid faster by placing you on probation, where your performance is evaluated more frequently.
Retake courses at your current school. To improve your GPA or pass more classes, you may need to retake what you previously failed. This can be hard to do without federal financial aid. You may need to consider private student loans to close the temporary gap in funding — but only if you have a solid plan to improve your grades and meet SAP standards.
Transfer to a less expensive college. Improving your grades without financial aid is no small feat. Consider transferring to a less expensive university or community college while you raise your GPA and accumulate enough credits to meet SAP requirements. You can also enroll part-time so that you can work while taking classes.
Submit the FAFSA every year. Your completed FAFSA is valid for one academic year. Complete the FAFSA each year to qualify for federal aid, especially if you’re in better academic standing and are now meeting SAP requirements.
There’s almost nothing as ominous as the phrase “finals week.” Cue the thoughts of cramming, sleep deprivation, and high anxiety. The stress the two words can induce is almost universal among college students.
However, students can both survive and succeed during finals week as long as they prepare. Here are four tips to help students get ready for finals week.
Getting organized is a great way to feel in control before finals begin. College finals week doesn’t have to blindside students, forcing them into all-nighters and sleepovers in the library. There are a couple of things students can do to get set up for finals week.
Memorize Your Finals Schedule
The dates for finals week are usually available from the beginning of a semester. This may vary by school, but students can sometimes find their finals information in their syllabus.
Memorizing the schedule and writing it down will ensure that students don’t forget to study for any exams and can budget enough time for each test.
Make a Study Plan
Once students have their finals schedule memorized, they can start mapping out their study strategy. Students can base their study tips on which finals will require the most studying and the dates they occur.
It is recommended that students avoid long cram sessions. Studying ahead of time in shorter increments helps to retain information. This is why mapping out a study plan ahead of time can be helpful.
When making a plan, there are different strategies students can use. They can create a schedule based on the difficulty level of the tests, choosing to set aside more time to study for the finals that will be the most challenging for them.
They can also plan their schedule based on the order of their finals, saving more time later on to study for the last exams.
Having a plan can help students avoid cramming, spending too much time studying for one final over another, or forgetting to study for one altogether.
Recommended: Do Grades Affect Student Loans?
2. Keep Your Body Healthy
As tempting as it is to stay in the library 24/7 living on ramen and coffee, staying physically healthy during finals week is important for bringing home those good grades.
Eating a balanced diet — yes, that means fruits and veggies too, before and during finals week — can help students stay focused and avoid getting sick during finals.
Drinking water is also a good idea when plotting to ace those finals. Dehydration can have many negative effects, like tiredness, headaches, reduced alertness, and diminished concentration, which could affect test performance. Even drinking water during an exam can lead to better performance.
Another important piece of staying healthy is getting enough sleep. It’s common to see students pulling all-nighters in the library during finals week, but a lack of sleep can result in a worse memory and therefore, an inability to remember what has been studied. Missing out on a full night’s sleep can be detrimental to students’ ability to pass their exams.
Exercising is also often deprioritized during finals week. Students are so focused on studying that it’s easy to skip that 30-minute workout. Exercise, though, needs to find a place in a hectic schedule because it will benefit a student during this stressful time. Exercise can both lower stress and maintain high-level brain functioning, leading to a better chance of crushing those exams.
3. Keep Your Mind Healthy
Maintaining good mental health during the school year may already be a challenge, but especially during finals week it’s important to pay attention to and take care of mental health.
Even students who don’t regularly have anxiety may experience it during finals week. There are many calming techniques available to ease anxiety, and each student should see what feels best. Here are a few techniques they can try.
• Breathing. There are tons of breathing techniques out there that can help with anxiety or stress. Students should look up a few simple ones and see what works best for them.
• Grounding. This is a technique where students focus on their senses, naming five things they can see, four things they can feel, three things they can hear, two things they can smell, and one thing they can taste. Doing this can reduce anxiety or panic and help students stay focused.
• Meditation. Taking up a daily meditation practice before studying and before exams start could help a person stay calm during stressful events. There are lots of meditation apps available as well as guided meditations online.
Another piece of maintaining mental health during finals week is taking breaks. Breaks are beneficial both for studying ability and mental health. Taking a break to do something enjoyable can decrease stress and keep a student’s mind in a good place.
Anyone experiencing high levels of anxiety can reach out to school counselors and see about making an appointment. Students may also benefit from talking about their stress with friends, family members, or professors. Leaning on a social support network during this stressful time may alleviate some of the nervousness that comes with finals week.
Lastly, students should ask for help if they need it. Most colleges have mental health services on campus.
4. Team Up
Students should remember that they’re not going through finals alone. They have a whole class of students struggling right alongside them. This can be a huge asset come finals week.
Instead of studying alone, students can form study groups.Study groups can help students be better prepared for finals. There may be some in the class who understand the material better and can teach it to others.
This helps both the student struggling and the student teaching. The struggling student gets new explanations for tricky material that may be easier to understand. The teaching student solidifies the material in their memory even more by explaining it to others.
Being in a study group can also help with accountability, so students are less likely to slack off and stop studying.
Those who need further support during finals week can visit their professors during office hours or consider getting a tutor. Professors want to see their students succeed, and though they can’t give answers to exam questions, they can help explain parts of the material that someone is struggling with.
No Pay, No Gain
Wait, so college students are paying to suffer through finals week? Technically, yes, because college costs money, of course, and even if the nightmare of finals week is still far off, it’s never too soon for students to start sorting out how they’re going to finance their entire college education.
There’s more than one resource available to students when it comes to funding college expenses. Here are a few, broken down in an easy-to-understand way.
Federal Aid
Students already in college might be familiar with the Free Application for Federal Student Aid, commonly known as the FAFSA.® Eligibility for undergraduates is usually based on parents’ income. Federal aid can come in the form of grants or loans. Grants usually don’t need to be repaid, but loans do.
Federal loans usually come with benefits that private loans don’t, such as income-driven repayments and lower fixed rates. It’s recommended that if students need to take out loans, they use federal loans before turning to private loans.
Is the FAFSA® one and done? Not at all. You must complete the application every year that you attend school if you hope to gain federal aid, and on time.
Free Money
The world of scholarships is vast. Though it can take some digging to find scholarships that students are eligible for, it’s money that usually doesn’t need to be repaid.
Scholarships can be need based or merit based, with the eligibility requirements different for each one. Scholarships come from colleges, corporations, local community organizations, religious organizations, and more.
Students might want to check if their college has any information available on scholarships. Usually, schools have a scholarship office or information about scholarships at their financial aid office.
Another Option
Private student loans are another way to help fund the college experience, when federal aid doesn’t cover all the bases, a student doesn’t qualify for federal aid, or someone has reached a limit on federal direct loans.
The eligibility for private student loans is usually based on a student’s income and credit history, or that of a cosigner. Each lender will have its own terms, including the interest rate and repayment methods, which merit research.
SoFi offers private student loans with attractive fixed or variable rates, no fees, and a quick online application.
See if you prequalify with SoFi in just two minutes.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. SOIS0523004
If you live in Florida — or are thinking of relocating — the Sunshine State has several prestigious colleges and universities, including Embry-Riddle Aeronautical University, the University of Florida and Rollins College.
Higher education is less expensive in Florida than in most other states. The state also operates several robust financial aid programs, such as the Bright Futures scholarship program, that can make college more affordable for residents.
The cost of education in Florida
Florida’s education system includes 40 public colleges and universities. There are also at least 30 private, non-profit schools throughout the state.
Generally, a college education in Florida is cheaper than the national average. Here’s how much you can expect each year of your degree to cost at different types of institutions, based on 2020-21 average tuition rates as reported by the National Center for Education Statistics:
Public four-year, in-state: Nationally, the average cost of a public, in-state university was $21,337 per year. In Florida, the cost was $15,543 per year — a difference of almost $6,000.
Private non-profit: Private colleges and universities are usually more expensive than public schools. The average cost of a year at a private school in Florida was $28,860, about $4,500 less than the national average.
Community college: The average cost of attending a two-year school was $3,501 per year at the national level. In Florida, the average cost was $2,506 per year, nearly $1,000 less.
Financial aid options in Florida
To qualify for state-based financial aid, you must establish residency. For the purposes of in-state tuition rates and other state aid, you or your parents must live in Florida for at least 12 consecutive months before the first day of the term.
Currently, undocumented and Deferred Action for Childhood Arrivals (DACA) students can qualify for in-state tuition rates at Florida public colleges and universities if they meet the following criteria:
Attend a secondary school in Florida for at least three consecutive years before graduating.
Enroll in a Florida postsecondary institution within 24 months of graduating from high school.
Submit an official Florida high school transcript as evidence of attendance and completion.
However, the 2014 law that allowed those students to qualify for in-state tuition is facing challenges. Current Florida Governor Ron DeSantis has proposed repealing the measure, so this benefit may not be available in the future.
If you are a Florida resident, you may qualify for one or more of the following financial aid programs:
529 plans.
In-state tuition.
Scholarships.
Student loan repayment assistance.
Florida 529 plans
529 plans are tools to save for a child’s future education. In Florida, there are two programs:
Prepaid tuition plan: Florida Prepaid College Plans allow you to purchase college credits for future use at today’s prices. The credits can be used in-state or out, and the child can attend public or private schools. The funds are available for up to 10 years after the child’s projected high school graduation date, and plans start at $45 per month. There’s also a $50 application fee.
529 college savings plan: The Florida 529 Savings Plan is an investment account you can use to save for a child’s education. You can choose from a range of investment options to grow your contributions tax-free as long as you use the money to pay for eligible education expenses.
While some states offer special benefits, such as state account contributions or tax credits, Florida does not provide the same incentives or benefits.
Florida in-state tuition
Florida participates in the Academic Common Market. This network allows resident students to attend school in other states and pay in-state tuition rates. Through the network, students can qualify for in-state tuition at eligible programs in the following states:
Louisiana.
Mississippi.
South Carolina.
Tennessee.
West Virginia.
Not all schools or programs qualify, so talk to your selected school’s financial aid office to find out if you’re eligible for in-state rates.
Florida grants
Grants, as a form of gift aid, don’t need to be repaid, and they’re typically awarded based on financial need. Florida has three state grant programs:
First Generation Matching Grant Program
The First Generation Matching Grant Program is for Florida undergraduate students with substantial financial need and whose parents did not earn a college degree. Award amounts vary by year and the needs of the student.
Florida Student Assistance Grant Program
José Martí Scholarship Challenge Grant Fund
Florida scholarships
Students from Florida may qualify for one of nine scholarships.
Bright Futures Scholarship Program
Florida’s best-known and most valuable scholarship is the Bright Futures Scholarship Program. Through Bright Futures, students can qualify for an award for as much as 100% of college tuition and fees.
To qualify, students must be Florida residents, earn a Florida high school diploma or its equivalent, and maintain a GPA of 3.0 or higher in high school. Students must also complete volunteer service or paid work hours to qualify for the Bright Futures program.
Benacquisto Scholarship Program
The Benacquisto Scholarship Program is a merit-based award for high school graduates who achieved National Merit Scholar status. The award amount varies, but it can cover the total cost of attendance at participating schools, minus other financial aid.
Florida Farmworker Student Scholarship Program
The Florida Farmworker Student Scholarship Program is both merit-based and need-based. Each year, up to 50 eligible students can qualify for financial assistance that covers up to 100% of the credit hours required for degree or certificate programs. To qualify for the scholarship, students must be farmworkers or the children of farmworkers.
Mary McLeod Bethune Scholarship
As a merit- and need-based scholarship, the Mary McLeod Bethune Scholarship provides up to $3,000 in financial aid to academically strong students with financial need. To qualify, students must have a 3.0 GPA or higher and enroll at Bethune-Cookman University, Edward Waters College, Florida A&M University or Florida Memorial University.
Minority Teacher Education Scholars program
Administered by the Florida Fund for Minority Teachers, the Minority Teacher Education Scholars program is a performance-based scholarship for African American, Hispanic American, Asian American and Native American students. Eligible students can receive up to $4,000 per year in financial assistance.
Randolph Bracy Ocoee Scholarship Program
Students who are direct descendants of the victims of the Ocoee Election Day Riots of November 1920 or are current African American residents of Ocoee are eligible for the Randolph Bracy Ocoee Scholarship Program. Eligible students will receive up to $6,100 per year in financial aid.
Rosewood Family Scholarship
The Rosewood Massacre occurred in 1923. Students who are direct descendants of Rosewood families affected by those events can qualify for the Rosewood Family Scholarship. Qualifying students will receive up to $6,100.
Scholarships for Children and Spouses of Deceased or Disabled Veterans
This award is for the children or spouses of deceased or disabled military veterans who were Florida residents. Eligible students can receive funding for up to 110% of the required credit hours for an initial baccalaureate degree or certificate program.
William L. Boyd, IV Effective Access to Student Education Program
Student loan repayment programs in Florida
If you have student loans and live and work in Florida, you may be eligible for help from the state in repaying your loans. Florida has programs for attorneys and health care workers who will repay a portion of your debt if you complete a service obligation in a high-need area. The following loan repayment assistance programs (LRAPs) are available:
Florida Bar Foundation
The Florida Bar Foundation designed its LRAP to encourage attorneys to work for legal aid organizations. Under the terms of the LRAP, eligible lawyers can receive up to $5,000 per calendar year to repay federal or private student loans.
Florida John R. Justice
Florida’s John R. Justice LRAP provides repayment benefits to state and federal public defenders and state prosecutors who commit to remaining as defenders or prosecutors for at least three years. Participants in the program can receive up to $10,000 in loan repayment assistance per year, up to a maximum of $60,000. This program will only repay federal student loans; borrowers with private student loans aren’t eligible.
Florida Reimbursement Assistance for Medical Education program
The goal of the FRAME program is to recruit and retain medical professionals to practice in underserved areas. Through the program, nurses, physicians and physician assistants can receive assistance with their student loans. Award amounts vary by profession, but eligible borrowers can receive up to $20,000 per year in student loan repayment benefits. Federal and private student loans can be repaid through FRAME.
Nursing Student Loan Forgiveness Program
The Nursing Student Loan Forgiveness Program provides up to $4,000 annually in loan forgiveness to nurses working full time at a designated site. Examples include public schools, state-operated medical and health care facilities, and county health departments.
Nurses can participate in the program for up to four years. The program will repay federal and private student loans.
How to apply for financial aid in Florida
Florida has several financial aid programs, including gift aid in the form of grants and scholarships. To ensure you get all of the aid you’re eligible for, follow these steps:
Fill out the FAFSA: Need-based programs will determine your financial need based on the information that you submit with the Free Application for Federal Student Aid (FAFSA). The FAFSA can take less than an hour to complete. Fill it out online at FAFSA.gov.
Look up deadlines: Although Florida’s FAFSA deadline is in mid-May, some scholarship or grant programs may have different deadlines and requirements. Review the application materials of each program carefully, and make a note of any deadlines.
Create an account with Florida’s Office of Student Financial Assistance: Some of Florida’s programs require you to have a student account with the Office of Student Financial Assistance. It’s free to create an account, and you can open one at FloridaStudentFinancialAidSG.org.
Fill out the Florida Financial Aid Application: Some grant and scholarship programs require the Florida Financial Aid Application as well as the FAFSA. You must have a student account with the Office of Student Financial Assistance. Once your account is created, you can access and fill out the application.
Apply for specific programs: Some programs, such as the Benacquisto Scholarship Program or the Minority Teacher Education Scholars program, require separate applications or additional materials. Review each program’s eligibility requirements online so you can fulfill the application requirements.
Frequently asked questions
Is Florida Bright Futures based on income?
No, Bright Futures scholarships are not awarded based on your family’s income. In fact, the FAFSA isn’t required at all. Eligibility is determined by your residency, grades, standardized test scores, and volunteer or paid work hours.
Are undocumented or DACA students eligible for Florida in-state tuition?
Currently, undocumented and DACA students are eligible for in-state tuition rates under Florida House Bill (H.B.) 851, which was passed into law in 2014.
Can Florida residents get help completing the FAFSA?
Yes. Visit the Florida College Access Network for free resources, including detailed videos and tutorials, that can help you fill out the required forms to get the maximum amount of financial aid possible.
What is the FAFSA deadline for Florida?
Florida’s FAFSA deadline for the 2023–24 academic year was May 15, 2023. The application typically opens to students on Oct. 1 each year, so it’s a good idea to fill it out as soon as possible. If you missed this deadline, you can still complete the FAFSA for federal aid through Jun. 30, 2024.
The Department of Education has proposed new regulations to protect students enrolled in for-profit institutions and certificate programs from being saddled with debt they can’t afford to repay. The public has until June 20 to comment on the proposal.
“We cannot turn a blind eye to the college programs that are leaving students with mountains of unaffordable debts,” said Undersecretary of Education James Kvaal in a press release from May 17.
According to Kvaal, for-profit and career colleges are at the center of the problem, and the latest proposals offer the strongest protection yet for students and others involved against what he called “low value, debt-fueled colleges.”
These provisions would put metrics in place for institutions that fall under “gainful employment” regulations — targeted primarily at nondegree programs or any for-profit educational program — to decrease the number of students left with excessive debt compared to earnings. Low-performing institutions could lose access to federal financial aid.
“These programs disproportionately target many of the lowest-income students, in many cases leaving them financially worse off than if they never attended,” Becky Pringle, president of the National Education Association, a nonprofit organization of public education advocates, said in an email response.
The proposal also aims to increase the transparency of out-of-pocket costs and student outcomes for all educational institutions (public, private and for-profit) by collecting and publicizing more detailed college-level data. This is especially noteworthy, Pringle said, as it’s the first time students and their families will have access to this program-level data, empowering their decision making.
Cost of attendance, nonfederal aid and average debt and earnings are just a few data points that could be collected. Students would have to acknowledge this information before receiving federal financial aid from colleges not meeting the standards.
According to the Department of Education, proposed changes could affect nearly 1,800 underperforming programs, impacting over 700,000 students. Here are the proposal details.
Programs must achieve metrics to access federal financial aid
For-profit institutions and public or private nondegree programs are required to adequately prepare students for gainful employment to access federal financial aid, according to the Higher Education Act.
To hold programs accountable, the Department of Education will require institutions to meet performance standards in two areas:
Debt to earnings. The share of a graduate’s annual income needed to make their student debt payments cannot exceed 8%. For graduates on income-based repayment plans, their debt-to-earnings ratio must be less than 20% of their discretionary income — defined as income above the 150% federal poverty guideline.
Earnings compared to high school graduates. An institution must have at least half of its graduates earning more than the typical high school graduate with no postsecondary education. Graduate income is compared to the labor force of the college’s state.
Failing one metric would force the institution to alert students that the program may lose access to federal aid. If a program fails to achieve both metrics twice within three years, the program will completely lose access to federal aid.
Public access to more detailed college-level data
The department is also pushing for greater consistency in reporting the cost and return of postsecondary education. By collecting more detailed data on the cost of attendance, potential earnings and typical debt, the federal government wants to help students and families avoid impossible debt burdens.
New data collected could include the following:
Cost of tuition, fees, books and supplies.
Licensing requirements and exam passage rates (if applicable).
Nonfederal aid amounts per student.
Amount borrowed — for federal and private loans — per student.
Earnings per student.
Information will be made public on a department-run website, requiring students to acknowledge they’ve reviewed the data points before they can receive loans for a program that does not meet federal standards.
These metrics will also feed a “watch list” of institutions that leave students with high debt and poor earnings.
Additional provisions
Proposed regulations also include changes to other government-defined regulatory areas that will better equip the agency to hold institutions accountable — both proactively and once standards have not been met. They are:
Financial responsibility. Institutions would report behavior that could indicate a higher risk of closing suddenly — such as failing to make debt payments for more than 90 days. Certain financial triggers could lead to the Department of Education requiring a letter of credit from the institution to guarantee payment.
Administrative capability. There would be greater requirements for college administration programs, like career services and financial aid offices. Proposals would also include preventing administrators with previous misconduct around federal financial aid programs from being hired.
Certification procedures. The Department of Education would like to be able to more easily adjust its agreements with institutions receiving federal financial aid.
The regulations would also make adjustments to Ability to Benefit — a provision of the Higher Education Act allowing students without a high school diploma to have access to federal financial aid.
This proposed rule is currently open for public comment. Submit comments at Regulations.gov before June 20.
The Education Department expects to finalize the rule by the end of 2023. Rules finalized by Nov. 1, 2023, will go into effect on July 1, 2024.
On average, it costs $23,890 a year to attend an out-of-state school versus $9,410 for an in-state school. That’s $14,480 more per year you could pay — just to attend a college in a different state than where you grew up.
Source: Giphy.com
Over four years, you could end up paying $60,000 more than someone who attends school in-state. So, what are some ways you can lower the cost of out-of-state tuition? Here are seven of our biggest tips.
What’s Ahead:
1. Research Regional Reciprocity Programs
Many schools have “regional reciprocity agreements” or “tuition exchange programs” that let you attend certain out-of-state colleges for in-state rates.
For instance, 18 colleges in Georgia offer in-state tuition to residents of border states. This includes Alabama, Tennessee, North Carolina, South Carolina, and Florida.
On a much broader scale, several states have banded together to create regional reciprocity programs that give you reduced out-of-state tuition at hundreds of public and private schools.
The four biggest regional reciprocity programs include:
Midwest Student Exchange — Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, and Wisconsin.
The New England Regional Student Program — Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.
Academic Common Market — Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia.
Western Undergraduate Exchange — Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming, and the Commonwealth of the Northern Mariana Islands.
Some schools will offer in-state tuition to any student in a neighboring state, while others may require you to meet certain criteria — such as having a specific high school GPA or declaring a certain major.
MU30 Tip: Already have a few colleges in mind? Look on their websites or contact financial aid to see if they have any tuition exchange or reciprocity programs in place.
2. See If You Qualify for a Tuition Waiver
In some cases, you may be able to get a tuition waiver that allows you to attend an out-of-state college at a reduced rate. Tuition waivers are usually granted to students with special circumstances:
You (or someone in your immediate family) is a veteran or active duty military member.
You were valedictorian or a high achiever.
You’re enrolled in a special degree program, such as STEM or health care.
You work for the school you wish to attend.
You were or are a part of the foster care system.
You’re a nontraditional student.
You’re of Native American heritage.
You have a financial hardship.
To see if you qualify, search for the phrase “tuition waiver” on your favorite schools’ websites. This should pull up a list of all the tuition waivers currently available. (For example, I found 13 waivers on the University of Washington’s website.)
3. Apply for Out-of-State Scholarships
There are several scholarships specifically for students who are attending college out-of-state. These scholarships can help you cover the costs of tuition, room and board, and other expenses.
To find out-of-state scholarships, start by checking with your college’s financial aid office. There’s a good chance the school has scholarships earmarked for nonresidents.
From there, do a scholarship search using a tool like the College Board Scholarship Search or Fastweb. You may find some private scholarships to help lower your out-of-pocket costs.
Read more: Scholarships and Grants: How To Score Free Money for College
MU30 Tip: Does your parent or guardian work in higher education at one of these Tuition Exchange member schools? If so, you can apply for a reciprocal scholarship that lets you attend hundreds of schools in the U.S., Canada, Greece, Morocco, the United Arab Emirates, and Switzerland at a free or reduced rate!
4. Think About Becoming a Resident Assistant
If you’re planning on attending college out-of-state, one way to lower your costs is to become a resident assistant (RA). RAs typically receive free or reduced-cost housing in exchange for their duties, which can include things like leading tours and organizing social events.
So while you may not get a tuition discount, it could help you save on housing while you’re there.
To become an RA, start by talking to your college’s housing office. They should be able to tell you about any open RA positions and their requirements. You may also need to fill out an application and go through an interview process.
5. Negotiate Out-of-State Tuition With the Financial Aid Office
It’s not widely advertised, but you can technically negotiate the cost of tuition and fees with the financial aid office. In fact, doing so could save you anywhere from 5% to 15%. On a four-year degree that costs $60,000, that’s a savings of $3,000 to $9,000.
Beyond negotiating, the financial aid office is also a way to find out what types of aid are available to you as an out-of-state student.
Read more:
6. Become an In-State Resident
This tip may seem a little far-fetched, but hear me out. If you’re taking a gap year, for instance, and have time to establish residency in the state where you want to attend college, it could be worth it.
Every state has different requirements for residency, but you’ll typically need to live there for at least a year before you can apply for in-state status.
Start by researching the requirements for the state you want to move to, then get working on completing them. This could include getting a job or an apartment in the state, getting a driver’s license, and more.
7. Look for Schools With Lower Out-of-State Tuition Rates
If all else fails and there’s no way for you to get reduced out-of-state tuition, another option is to simply look for schools that charge lower rates for out-of-state students.
MU30 Tip: Want to see which colleges have the lowest tuition rates? Check out this affordability calculator from the U.S. Department of Education.
Once you have out-of-state tuition rates for different colleges, you can start to compare your options and make a decision about which school is the best fit for you.
Read more: Not Enough Financial Aid? Here are 10 Ways To Pay for College
Bottom Line
Out-of-state tuition can be costly, but there are ways to minimize costs without racking up a ton of student loan debt. Use these tips to see how much you can save.
Featured image: Alexander Lukatskiy/Shutterstock.com
On average, it costs $23,890 a year to attend an out-of-state school versus $9,410 for an in-state school. That’s $14,480 more per year you could pay — just to attend a college in a different state than where you grew up.
Source: Giphy.com
Over four years, you could end up paying $60,000 more than someone who attends school in-state. So, what are some ways you can lower the cost of out-of-state tuition? Here are seven of our biggest tips.
What’s Ahead:
1. Research Regional Reciprocity Programs
Many schools have “regional reciprocity agreements” or “tuition exchange programs” that let you attend certain out-of-state colleges for in-state rates.
For instance, 18 colleges in Georgia offer in-state tuition to residents of border states. This includes Alabama, Tennessee, North Carolina, South Carolina, and Florida.
On a much broader scale, several states have banded together to create regional reciprocity programs that give you reduced out-of-state tuition at hundreds of public and private schools.
The four biggest regional reciprocity programs include:
Midwest Student Exchange — Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, and Wisconsin.
The New England Regional Student Program — Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.
Academic Common Market — Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia.
Western Undergraduate Exchange — Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming, and the Commonwealth of the Northern Mariana Islands.
Some schools will offer in-state tuition to any student in a neighboring state, while others may require you to meet certain criteria — such as having a specific high school GPA or declaring a certain major.
MU30 Tip: Already have a few colleges in mind? Look on their websites or contact financial aid to see if they have any tuition exchange or reciprocity programs in place.
2. See If You Qualify for a Tuition Waiver
In some cases, you may be able to get a tuition waiver that allows you to attend an out-of-state college at a reduced rate. Tuition waivers are usually granted to students with special circumstances:
You (or someone in your immediate family) is a veteran or active duty military member.
You were valedictorian or a high achiever.
You’re enrolled in a special degree program, such as STEM or health care.
You work for the school you wish to attend.
You were or are a part of the foster care system.
You’re a nontraditional student.
You’re of Native American heritage.
You have a financial hardship.
To see if you qualify, search for the phrase “tuition waiver” on your favorite schools’ websites. This should pull up a list of all the tuition waivers currently available. (For example, I found 13 waivers on the University of Washington’s website.)
3. Apply for Out-of-State Scholarships
There are several scholarships specifically for students who are attending college out-of-state. These scholarships can help you cover the costs of tuition, room and board, and other expenses.
To find out-of-state scholarships, start by checking with your college’s financial aid office. There’s a good chance the school has scholarships earmarked for nonresidents.
From there, do a scholarship search using a tool like the College Board Scholarship Search or Fastweb. You may find some private scholarships to help lower your out-of-pocket costs.
Read more: Scholarships and Grants: How To Score Free Money for College
MU30 Tip: Does your parent or guardian work in higher education at one of these Tuition Exchange member schools? If so, you can apply for a reciprocal scholarship that lets you attend hundreds of schools in the U.S., Canada, Greece, Morocco, the United Arab Emirates, and Switzerland at a free or reduced rate!
4. Think About Becoming a Resident Assistant
If you’re planning on attending college out-of-state, one way to lower your costs is to become a resident assistant (RA). RAs typically receive free or reduced-cost housing in exchange for their duties, which can include things like leading tours and organizing social events.
So while you may not get a tuition discount, it could help you save on housing while you’re there.
To become an RA, start by talking to your college’s housing office. They should be able to tell you about any open RA positions and their requirements. You may also need to fill out an application and go through an interview process.
5. Negotiate Out-of-State Tuition With the Financial Aid Office
It’s not widely advertised, but you can technically negotiate the cost of tuition and fees with the financial aid office. In fact, doing so could save you anywhere from 5% to 15%. On a four-year degree that costs $60,000, that’s a savings of $3,000 to $9,000.
Beyond negotiating, the financial aid office is also a way to find out what types of aid are available to you as an out-of-state student.
Read more:
6. Become an In-State Resident
This tip may seem a little far-fetched, but hear me out. If you’re taking a gap year, for instance, and have time to establish residency in the state where you want to attend college, it could be worth it.
Every state has different requirements for residency, but you’ll typically need to live there for at least a year before you can apply for in-state status.
Start by researching the requirements for the state you want to move to, then get working on completing them. This could include getting a job or an apartment in the state, getting a driver’s license, and more.
7. Look for Schools With Lower Out-of-State Tuition Rates
If all else fails and there’s no way for you to get reduced out-of-state tuition, another option is to simply look for schools that charge lower rates for out-of-state students.
MU30 Tip: Want to see which colleges have the lowest tuition rates? Check out this affordability calculator from the U.S. Department of Education.
Once you have out-of-state tuition rates for different colleges, you can start to compare your options and make a decision about which school is the best fit for you.
Read more: Not Enough Financial Aid? Here are 10 Ways To Pay for College
Bottom Line
Out-of-state tuition can be costly, but there are ways to minimize costs without racking up a ton of student loan debt. Use these tips to see how much you can save.
Featured image: Alexander Lukatskiy/Shutterstock.com
If you’ve been paying attention to the news within the past few months, you’ve likely been hearing a lot about the rise of the robo-advisor.
Robo-advisors is the term given to any number of automated investing services that have popped up in recent years that aim to make investing easier, more affordable and in some instances negate the need for a traditional financial or investment advisor.
While their investment recommendations vary to some degree, many of them use algorithms based on Modern Portfolio Theory (MPT) to aid in choosing diversified investments and asset allocation based on your risk tolerance. MPT helps to maximize expected return for your portfolio based on your risk profile.
While I still think that some people could benefit from working with a human financial planner one on one, I do think that for most investors using an automated investing service makes a ton of sense.
Today I thought I would do a review of Wealthfront, one of the top and most well respected automated investing services available today.
UPDATE: Sign up for Wealthfront via this exclusive Bible Money Matters link to get $5,000 managed for free:
Sign up for Wealthfront and get $5,000 managed for free
Wealthfront History
Wealthfront launched their automated investment service in 2011 and the company is currently based in Redwood City, California. In 2012 Wealthfront launched a daily tax-loss harvesting service. From 2013 to 2014 the company went through some tremendous growth, growing by over 450% in one year. By 2019 Wealthfront now has more than $12 billion of assets under management.
Wealthfront never holds your portfolio when you invest with them, they just manage it. The portfolio is actually held with Royal Bank of Canada.
How Does Wealthfront Work?
When you sign up for Wealthfront you start by completing a questionnaire that is aimed at determining your risk tolerance. Once your risk tolerance is determined asset allocations are set that will remain the same regardless of how much you have invested.
The portfolios are based on a mix of 6 – 8 asset classes that includes both U.S. and international stocks and bonds. They invest mainly via the following ETFs, although that is subject to change.
U.S. Stocks (VTI)
Foreign Stocks (VEA)
Emerging Markets (VWO)
Real Estate (VNQ)
Dividend Stocks (VIG)
Emerging Market Bonds (EMB)
Municipal Bonds (MUB)
CorporateBonds (LQD)
US TIPS (SCHP)
Natural Resources (XLE)
When you invest with Wealthfront your diversified asset allocation will depend on the tax status of your account (taxable or tax deferred), and what is the most tax efficient method of investing for you.
In essence, you’ll get a highly diversified, low cost portfolio that is suited to your level of risk, time horizon and other factors.
Signing Up For Wealthfront
Signing up for Wealthfront is a quick process. Here’s what you’ll need to do.
Once you begin the signup process it will first have you go through a risk tolerance assessment.
Once you’ve answered all the questions, it will give you a quick rundown of what assets and allocation that they would suggest for you, in both a taxable account and retirement account.
If everything looks OK, you’re ready to open your account.
Available account options with Wealthfront include:
Standard taxable account
Joint investment account
Trust account
Traditional IRA
Roth IRA
SEP-IRA
Wealthfront 529 College Savings Plan
Once you choose which account type you want and hit continue, it will take you through the process of entering all of your basic information including:
Full name
Address
Birth date
Phone number
Social security number
Income
After filling out the basics it will ask you to fund your account. Your options for funding the account include:
Bank transfer (3-5 business days to get started)
Wire transfer (1 business day to get started)
Account transfer (5-10 business days)
Once you submit your application and confirm your email address you just have to wait for your account to be approved. After approval you can login to your account dashboard to confirm transfers, view your account summary, view your plan, transactions, documents and more.
Wealthfront Features
So what are some of the features that you get when you open a Wealthfront account?
Proven passive investing strategy that gives you a diversified portfolio
So what do you invest in when investing with Wealthfront?
We invest with an equity orientation to maximize long-term returns. Each of our selected asset classes is represented by a low cost, passive ETF. We continuously monitor and periodically rebalance your portfolio to maximize your chance of investment success for the long run. We also attempt to minimize your taxes by analyzing the taxes likely to be generated by any given asset class, and then allocating different asset classes in taxable and non-taxable (retirement) portfolios. We use Modern Portfolio Theory (MPT) to identify the ideal portfolio for each client.
Your portfolio will consist mainly of low cost ETF index funds that will be tailored to your risk tolerance, with intelligent dividend reinvestment and regular portfolio rebalancing. It is fully diversified. For a complete look at the Wealthfront strategy you can check it out here.
Wealthfront offers a broad suite of tax efficient passive investment products. These strategies are known as PassivePlus, and in the past have mainly been available only to high dollar investors. Wealthfront didn’t invent these strategies, but it’s team of PhDs led by reneowned economist Burton Malkiel, along with their investment technology has made these products available to anyone. Among the strategies included in PassivePlus:
Tax loss harvesting: Tax-loss harvesting essentially takes investments that have declined in value and selling them at a loss, generating a tax deduction. The tax deduction helps to reduce your taxes. Wealthfront’s service allows daily tax harvesting to be possible, which can help to maximize gains versus a traditional year end tax loss harvesting. This service is available at no extra cost to investors.
Stock-level Tax-Loss Harvesting: Available for no extra cost to taxable accounts over $100,000, Stock-level Tax-Loss Harvesting is an enhanced form of Tax-Loss Harvesting that looks for movements in individual stocks within the US stock index to harvest more tax losses and lower your tax bill even more.
Risk Parity: Available for an additional 0.03% to taxable accounts over $100,000, Risk Parity is an alternative methodology to allocate capital across multiple asset classes, much like Modern Portfolio Theory (MPT), also known as mean-variance optimization. Historically, Risk Parity has generated better returns for a given level of portfolio risk than the more common MPT.
Smart Beta: Available for no extra cost to taxable accounts over $500,000, Smart Beta is an investment feature designed to increase your expected returns by weighting the securities in the US stock index of your portfolio more intelligently.
Wealthfront also invests in index funds which tend to have little turnover, and as such will likely realize lower capital gains taxes. They also use dividends to rebalance your portfolio throughout the year, lowering capital gains. They optimize asset classes and allocations depending on whether an account is taxable or tax advantaged.
No commission fees
With Wealthfront you’re never going to pay fees for purchase of the ETFs in your account.
Other Wealthfront Feature Updates
Wealthfront is constantly innovating, and has had a myriad of other updates in the past year or so, all designed to make investing easier, more efficient, and to bring you better returns. Here are a few of the features and functionality that set them apart.
Free Financial Planning: The new free financial planning experience, unique to Wealthfront, using the Path planning engine.
Tailored Transfers: Instead of selling everything at once, use our tailored transfer process to migrate your investments tax-efficiently over time.
Portfolio Line of Credit: This line of credit is available for any Wealthfront client with an Individual or Joint Wealthfront account valued at $100,000 or more. There’s no set up – if you’re an eligible Wealthfront client then you already have access. Your line of credit is secured by your diversified investment portfolio, so current rates are as low as 3.25-4.5% depending on account size – lower than most HELOC loans. Borrow the amount you need up to 30% of account value, when you need, for whatever you want. Repay on your own schedule.
Free Automated Financial Planning
In December of 2018 Wealthfront became the first robo-advisor to offer software based financial planning for free to anyone through their app or on their website. Some other services will offer planning to clients, but usually at a premium, and only through a call with a CFP on the phone.
With Wealthfront’s financial planning tools you can connect to your existing financial accounts in a few minutes, and then by tracking your actual spending and saving patterns to help you figure out how your financial future may look.
It helps you to figure out how much you need to save now to reach your future goals, and helps you to determine if you’ll be able to live the same lifestyle you live now, in retirement.
The free financial planning help takes the guesswork out of figuring out if your hoped for future is even attainable based on your current spending and saving patterns. It helps you take a look at “what-if” scenarios, and help you figure out what the impact of a raise at work, or saving more every month might be.
The free automated financial planning service is like having a personal financial planner, but without the need for a bi-annual meeting at an expensive office with a planner that hardly pays attention to your needs. Here’s a look at it from Wealthfront:
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Home Planning In Financial Planning Software
The financial planning software brings clients out of the window-shopping phase of home buying and into planning and saving with the help custom advice and recommendations. The Path advice engine uses third party data on home prices and mortgage rates combined with your financial information to provide an accurate estimate of what you can expect to afford when ready to purchase a home — whether it’s six months or five years from now.
The home affordability estimate given by the tool even accounts for expenses beyond the mortgage, such as closing costs, property taxes, maintenance, and insurance.
College Planning In Financial Planning Software
In addition they also now have a College planning tool that looks at every important aspect of college planning and deliver a complete, personalized assessment.
It will allow you to choose a college that your child may attend, enter some personal data about yourself, after which it will calculate the financial aid you can expect to receive at that school. Then you can setup how much to save, and see the effect of adding more to your savings. At the end you can link it to your Wealthfront 529 College Savings Plan!
The Wealthfront 529 College Savings Plan
This is another investment account unique to Wealthfront. They offer one of the lowest cost 529 plans from an advisor, that offers more diversification for higher returns. (Many plans offer a very limited range of investment options).
A recent Sallie Mae study shows that more and more parents are saving for college, but are nowhere near prepared to meet their goals because they are saving solely through savings accounts earning less than 1% interest. The Wealthfront 529 College Savings Plan was created to help change this, to help parents grow their child’s college savings, while minimizing the amount of risk based on your level of risk tolerance.
Wealthfront’s 529 uses 20 different glide paths, tailored to match both the beneficiary’s age, as well as the account owner’s financial situation and risk tolerance. Our glide paths transition asset allocations much more continuously, which again means you may be less likely to be hurt by market movements.
This is definitely something to check out if you’re interested in saving for your child’s education.
Wealthfront Cash Account
Wealthfront recently implemented a great new tool for savers. If you’ve got cash you want to keep out of the market and low risk, but you still want to earn a good amount of interest on it, the Wealthfront Cash Account might be just what you’re looking for.
The cash account is an FDIC insured account (up to $1 million dollars, 4 times the traditional bank insurance), that charges no fees and has only a $1 minimum.
At the time we updated this article it’s currently earning 2.57% APY. This makes their APY the highest on the market according to Bankrate, so if you’ve got extra cash laying around it makes their account a no brainer to sign up for.FDIC insured AND the best rate.
The Bankrate industry average savings rate is only 0.10%, so you can now earn over 25x more than the national average on cash balances!
It’s fast and easy to setup your cash account, it takes just minutes. Definitely worth checking out – whether you already have a Wealthfront account or not.
Fees, Charges & Minimums For Wealthfront
What are the fees that you’ll have to pay for the Wealthfront investment service? The good news is they offer some extremely competitive rates.
Wealthfront charges a monthly advisory fee based on an annual fee rate of 0.25%. The only other fee you incur is the very low fee embedded in the cost of the ETFs you will own that averages 0.15%.
Fees
You pay the following fees to Wealthfront:
So if you have $10,000 in your account and you signed up via our link, you’ll have no charge for the first $5,000, and a 0.25% fee on the second $5,000.
When you sign up you’ll also have the chance to refer other users to the service to earn $5,000 more per user in free asset management, beyond the first $5,000. If you know enough people who want to sign up, you could definitely increase the amount managed for free very quickly!
Account Minimums
An account with Wealthfront does come with a minimum balance.
Our account minimum is $500, which entitles you to a periodically rebalanced, diversified portfolio of low cost index funds enhanced with our daily tax-loss harvesting service (for taxable accounts).The account minimum required to qualify for our Stock Level Tax-Loss Harvesting is $100,000.
So to open an account, you’ll need a minimum of $500. Why not start with $500, and then fully fund your Roth IRA for the year ($5500 for 2018)?
There is also a minimum withdrawal of $250, and you can’t withdraw below the account minimum of $500.
If you withdraw all of your funds it will transfer your money and close your account for you, with no exit fees.
Wealthfront – Great Low Cost Investment Advisory Service
When I first heard about Wealthfront a few months ago, I wasn’t sure if it would be a service that I could recommend. After doing my due diligence, however, I believe they’re a great service that would be perfect for a lot of people.
Wealthfront is the only robo advisor who offers investment management, financial planning and banking-related services through their software. Anyone can open a Wealthfront investment account and receive a personalized, globally-diversified investment portfolio and access a variety of tax-efficient services.
I’d highly recommend giving them a chance if you’re looking for an easy place to start investing – that will work for you over the long haul.
Sign up for Wealthfront and get $5,000 managed for FREE
We’re living longer than ever before, and doing so in better health. So what can you do when you retire and want to keep your mind sharp or need to gain additional skills to stay competitive at work?
For many, the answer is to go back to school. But tuition can be prohibitively expensive.
At the same time, schools want their classrooms to be full of engaged students, regardless of age. In the interest of continuing education, many colleges and universities offer reduced or free college for seniors (typically, adults 60 and up, although the rules vary).
In fact, we found at least one option in every state.
Free (or Cheap) College for Seniors in Every State
While some institutions only allow senior students to audit classes, many offer the chance to earn credits toward a degree at a reduced — or completely waived — tuition rate.
Does your state have a senior citizen education program you can use? Find out below!
1. Alabama
The Alabama Commission on Higher Education states that Alabama seniors can attend any two-year institution within the state tuition-free.
Adults 60 and older should contact the financial aid office at any community college for admission and eligibility details.
Some Alabama schools, like Coastal Alabama Community College, offer online courses if you want to avoid in-person classes.
2. Alaska
The University of Alaska waives tuition for senior-citizen residents who receive full Social Security benefits. Seniors must wait until the first day of classes to enroll to ensure that there’s space remaining; they must also complete a tuition-waiver form.
Additional costs such as student activity, health center and lab fees are not covered; the student must pay them directly.
Online courses may be included if offered; check with the admissions office for confirmation.
3. Arizona
All 10 campuses of Maricopa Community College allow senior citizens to take classes for credit at 50% of the full tuition cost.
Students 65 and older must register between the first and second class sessions of the semester to ensure space is available. You can register for in-person, online or hybrid classes.
4. Arkansas
Arkansas waives tuition for anyone 60 and over who wants to work toward an undergraduate or graduate degree at state institutions.
Student fees may apply, and senior citizens may register only for classes with space available. If you need online courses, check with your chosen college to see what options you have.
5. California
California State University waives all tuition for state-supported classes and dramatically reduces campus fees for residents age 60 or older.
Different Cal State locations may offer online courses or in-person classes. Students who attend in-person classes must provide proof of COVID-19 vaccination.
6. Colorado
Students age 55 and older may attend class on a space-available basis at Colorado State University. There is no tuition fee, but visitors don’t get credit for attending class. It is up to the instructor how participation and grading of assignments and tests are handled. CSU currently offers face to face, hybrid and online classes.
At the University of Colorado Denver, people 60 and older may enroll on a no-credit basis to attend up to two classes per semester as auditors when space is available. (Courses with a lab component are excluded, as are computer courses and online courses.)
7. Connecticut
Residents 62 and up may attend state colleges, including community colleges, for free on a space-available basis.
At Central Connecticut State University, for example, tuition is waived for any resident over the age of 62 who applies for full- or part-time admission for a degree-granting program. Online courses are included.
Senior students may also take noncredit courses on a space-available basis and have tuition waived. All students must still pay all other fees.
8. Delaware
The University of Delaware, Delaware State University, and Delaware Technical and Community College allow all permanent state residents age 60 or older to audit or take classes for credit for free.
At the University of Delaware, students wishing to use the program must apply for admission on a space-available basis. Some graduate degrees may be eligible, as well. Residents can register for online or in-person courses.
Participants must pay all related student fees and buy their own textbooks.
9. District of Columbia
Senior citizens 65 and up may audit undergraduate courses from Georgetown University’s School of Continuing Studies. These students pay a fee of $32 per credit, which means a three-credit course will cost $96.
To audit a course, there must be available space and the instructor of record must approve the enrollment.
10. Florida
The Florida college system waives application, tuition and student fees for those age 60 and above, but colleges will award no credit and will grant admission on a space-available basis. Check to see whether your chosen college covers online courses as well as in-person ones.
Fun fact: Florida Atlantic University’s Lifelong Learning Society has the largest adult continuing education program in the U.S. It even has its own auditorium on campus to help serve FAU’s 30,000 new registrants each year.
11. Georgia
Georgia residents age 62 and above may take classes on a space-available basis for “little or no cost” at the state’s public colleges.
Seniors may choose to take classes for credit or continuing education, but they must apply through the regular admissions process at their school of choice. Many general education courses are offered online.
12. Hawaii
The Senior Citizen Visitor Program at the University of Hawaii and state community colleges allows senior residents age 60 and up to attend up to two courses per semester free of charge. Seniors who have been residents of Hawaii for at least one year may enroll in in-person, hybrid or online courses for no cost. It’s recommended but not required for students to be vaccinated against COVID-19. Students must demonstrate tuberculosis (TB) clearance by providing test results or a TB risk assessment form signed by a licensed U.S. health care provider.
Schools will not award credit nor will they keep permanent records of students’ class history.
13. Idaho
Programs in Idaho vary based on institution, but some schools offer good deals. The College of Southern Idaho offers free tuition for lower division courses for students aged 60 and older, in addition to other benefits. The college has online and in-person courses.
At Boise State University, Idaho residents who are at least 65 years old can audit classes on a space-available basis for free except for applicable special course fees. BSU offers online courses as well as in-person ones.
14. Illinois
Upon admission, senior citizens age 65 and up who meet income requirements can attend regular credit courses at Illinois public institutions for free. Lab, student and other fees still apply. Each institution will have guidance on registering for online or in-person classes.
15. Indiana
Indiana University offers programs that allow retired residents age 60 and older to take up to nine credit hours per semester and pay just 50% of in-state tuition fees. Courses are in person.
16. Iowa
Private institution Simpson College in Indianola allows people 65 and older to take one noncredit class for free per semester. Courses are open on a space-available basis and do not include lab courses. Online courses may be available.
17. Kansas
Tuition and fees are waived for students age 65 and older taking classes on a space-available basis. Residents must be admitted to a state-supported school to take advantage of this discount. Each school can also provide info on in-person versus online courses.
The registration process varies: The University of Kansas and Wichita State University, for example, require senior auditors to apply for admission. Online or in-person courses may be offered.
18. Kentucky
Tuition and fees are waived for students age 65 and older taking classes on a space-available basis. Residents must be admitted to a state-supported school to take advantage of this discount. Each school can also provide info on in-person versus online courses.
19. Louisiana
Students age 65 and up attending Louisiana state schools receive free tuition and 50% off books and materials at the campus student bookstore. Check with each school to see if online courses are included.
20. Maine
Senior citizens 65 and up may attend undergraduate classes as degree-seeking or audit students in the University of Maine System for free, subject to space availability.
Each college within the system can provide info on the types of courses covered (i.e., online, in-person, hybrid).
21. Maryland
Any student in the University of Maryland System who is retired and over the age of 60 may have tuition waived for up to three courses per semester, even for degree-granting programs. Online courses are available as well as face-to-face offerings.
Online courses are available as well as face-to-face offerings.
22. Massachusetts
Residents age 60 or older can take at least three credits per semester at any state-supported school in Massachusetts and receive free tuition.
Each location has information on what online courses are offered.
23. Michigan
Opportunities for seniors in Michigan vary by institution.
At Michigan Tech, for example, students 60 and older can have tuition waived for up to two courses per semester. Seniors must apply through the admissions office.
Western Michigan University invites seniors 62 and older to register for one class per semester tuition-free, which may include online classes.
At Wayne State University in Detroit, seniors 60 and up receive a 75% discount on tuition but must pay registration and related fees. Wayne State offers some online courses.
24. Minnesota
Minnesota waives tuition for senior citizens 62 and older, but fees and online options may vary by school. At the University of Minnesota, seniors pay a $10 fee per credit, but they can audit for free.
25. Mississippi
There’s no statewide benefit in Mississippi, but some schools have programs for seniors.
Mississippi State University provides a waiver to residents age 60 or older for classes offered on the Starkville or Meridian campuses or by the Center for Distance Education. Seniors are limited to six semester hours per semester and a maximum of 18 credit hours per calendar year, where space is available. MSU offers online courses as well as traditional in-person ones.
The University of Mississippi’s Office of Professional Development and Lifelong Learning allows seniors 65 and older to take one class for free per semester (up to four hours) at any UM campus.
26. Missouri
Missouri residents age 65 and older are exempt from paying tuition at state-supported institutions for classes attended on a noncredit basis. Schools may limit the number of students who receive the tuition benefit based on space availability. Online classes are offered in addition to in-person ones.
27. Montana
The Montana University System offers a tuition waiver for in-state residents 65 or older. Campus and registration fees are not waived. Choose from online or in-person classes.
28. Nebraska
Chadron State College allows adults 65 and up to audit one course per semester for free. The college offers classes online and on campus.
29. Nevada
The University of Nevada, Las Vegas allows seniors 62 and up to take autumn and spring courses free of charge. They pay 50% tuition for summer classes. Lab and other course fees are not covered. Online courses may be offered.
30. New Hampshire
The University of New Hampshire offers residents 65 and older free tuition for two credit-bearing classes per academic year on a space-available basis, so long as they’re not enrolled in a degree program. Courses are offered online or in person.
31. New Jersey
Rutgers University allows retired New Jersey residents 62 and older to audit courses for free in the spring and fall semesters at its Camden, New Brunswick and Newark campuses, space permitting. Current guidelines allow senior citizens to audit in-person or online classes if they have been fully vaccinated against COVID-19.
32. New Mexico
New Mexico offers reduced tuition of just $5 per credit hour to state residents 65 and older. Online courses are available.
For-credit classes are eligible as well as auditing; senior citizens can take no more than 10 credit hours per semester. The program is offered on a space-available basis, and students are responsible for paying any additional course fees.
33. New York
Many schools offer free or reduced tuition for senior citizens. Queens College allows residents 60 and up to audit any course on a space-available basis after completing a Senior Citizen Auditor Application and paying $80 per semester. Up-to-date COVID-19 vaccinations are required to enroll.
At SUNY Purchase, New York state residents 60 and older can enroll tuition-free in a maximum of two credit-bearing, on-campus courses in which space is available. They pay a $50 audit fee, $20 ID processing fee and any course fees. In-person, online and hybrid courses are available, and COVID-19 vaccinations are required for anyone coming on campus.
34. North Carolina
Tuition and registration fees are waived for residents 65 or older attending North Carolina community colleges. Senior citizens can take up to six credit hours per semester for free. Audit options may be available at other schools.
At the University of North Carolina Wilmington, for example, senior citizens may audit classes for free after getting the instructor’s permission and submitting an application. Lab, studio, performance, distance education, independent study, internship and special topic courses are excluded. Online courses are available for those who prefer them.
35. North Dakota
Programs vary by institution in North Dakota. At Bismarck State, for example, senior citizens 65 and older can audit one course tuition-free per semester on a space-available basis. They’re still responsible for other course fees. Some online courses are available.
36. Ohio
Ohio residents at least 60 years old may attend class at any state college for free. Senior-citizen students do not receive credit and can register only on a space-available basis. They are still responsible for special assessments, such as lab fees, that may apply.
Many Ohio state colleges offer online courses, as well as in-person and hybrid.
37. Oklahoma
Oklahoma state colleges and universities waive tuition and fees for senior citizens 65 and older who wish to audit classes on a space-available basis.
38. Oregon
Oregon State University allows senior citizens at least 65 years old to audit classes for free at a maximum of eight credit hours per semester.
The University of Oregon also waives fees for seniors 65 and older auditing classes on a space-available basis.
Online course options may be offered depending on availability.
39. Pennsylvania
Clarion University offers a tuition waiver for residents 62 and up to audit classes. At Bloomsburg University, you need to be only 60 to take tuition-free classes on a space-available basis.
There can be additional benefits at the community college level: Bucks County Community College, for example, waives for-credit course tuition for seniors 65 and up so long as they register after students who are paying full tuition. Many courses are offered online, though some in-person and hybrid options are available.
40. Rhode Island
Tuition waivers can be requested from citizens over 60 at the Community College of Rhode Island. Seats are granted when there is space available.
All degree-seeking senior students must fill out a FAFSA. They also have to submit a Senior Citizens Means Test to verify they have limited income.
Proof of COVID-19 vaccination is required to attend in-person classes. There are also online classes.
41. South Carolina
Residents 60 and above can attend classes at state schools on a credit or noncredit basis, pending space available, for free. The school must grant admission via its normal procedures.
Technology, lab and other fees are the responsibility of the student. Many South Carolina community colleges offer online courses for those interested.
42. South Dakota
Residents 65 and older can attend public universities in South Dakota at 55% of the normal cost of tuition for undergraduate or graduate in-person courses on a main university campus.
Interested adults should apply through the regular admissions system, and the school will automatically grant the discount upon admission. Student fees are not waived.
Contact your chosen university to see whether online courses are offered.
43. Tennessee
The University of Tennessee allows senior citizens to enroll in undergraduate or graduate courses for $7 per credit hour with a maximum fee of $70.
Students will still pay application and course fees. Senior citizens can choose between online courses and in-person ones.
44. Texas
A senior citizen age 65 or older can take up to six tuition-free credit hours at the University of Texas at Austin.
At the University of Texas at Dallas and Lone Star College, undergrad students 65 and older must maintain a 2.0 cumulative GPA to receive a tuition waiver for up to six credit hours per semester.
Check with each individual university to see which online and in-person classes are available for enrollment.
45. Utah
Utah residents age 62 and up may enroll tuition-free at a state institution, space permitting; a quarterly registration fee is required.
At the University of Utah, for example, seniors can audit most classes on a space-available basis and only have to pay a fee of $25 per semester, plus any special fees required. Call to see whether online classes are included.
46. Vermont
Vermonters over the age of 65 can audit one class per semester tuition-free on a space-available basis in the Vermont State College System. Students can take additional classes at a 50% discount of the tuition rate, either in person or online.
They’ll still have to pay administration and course fees for all classes.
47. Virginia
Under the amended terms of the Senior Citizens Higher Education Act of 1974, Virginia residents over 60 years old who earn a taxable income of less than $23,850 annually can audit up to three courses per term for free on a space-available basis at any public institution, either in person or online.
48. Washington
Institutions in Washington are required to partially or fully waive tuition fees for residents age 60 or older who are enrolled for credit on a space-available basis. Nominal fees may apply to students auditing courses.
Some schools limit senior citizens to a certain number of classes or credits; for example, Washington State University caps the waiver at six credits for the fall and spring semesters. Online programs are available.
49. West Virginia
Senior citizens 65 and older at West Virginia University seeking college credit must use the regular admissions form. Those wishing to be non-degree students pay just $5 to apply. WVU offers classes online or in person.
50. Wisconsin
Adults 60 and up may audit classes at the University of Wisconsin-Madison campus or at UW-Madison Online for free, where space is available.
51. Wyoming
At Laramie County Community College, senior citizens 60 and older pay only 20% of the resident tuition rate per credit hour, though they still need to pay any other course or online fees.
Northwest College offers adults 60 and older free tuition up to six credit hours per semester for on-site and online courses, as well as free entry to most college social, cultural and athletic events.
Another Continuing Education Option
More than 100 colleges and universities around the country offer another continuing education program for senior citizens: enrichment courses through the Osher Lifelong Learning Institutes (OLLI).
Prices vary depending upon the institution. Duke University, for example, has a $50 annual membership fee and then charges $50 to $175 per class. Senior citizens can choose to take classes online or in person.
OLLI classes don’t count toward a degree, but if you’re looking for personal development opportunities among older adults, these courses can provide opportunities that mix in the campus experience, too.
Contributor Catherine Hiles updated this post for 2023.
If you’ve been around the blog, I’m sure you’ve noticed that I’ve written much on the Roth IRA 2010 conversion event. It’s been getting a ton of buzz as many are eager to enjoy the tax-free benefits of the Roth IRA. As with anything, just because your neighbor is doing it, doesn’t mean you should. We took a closer look at some of the unforeseeable consequences of the Roth conversion and uncovered some potential pitfalls that you may have if you convert without knowing all the facts. Another important issue for parents who have children going to college soon is the impact that a Roth conversion can have on your kid qualifying for financial aid. Tax free is nice for down the road, but converting too much could leave you with a hefty tuition bill.
Benefits of the Conversion
As of now, you won’t pay any taxes for any money in the Roth. And if you’re a believer that taxes having a greater chance of going up then down, then why not pay the tax now and enjoy tax-free growth later on? Another benefit pertains to estate planning. Seniors that reach 70 1/2 are not required to take out their required minimum distributions in a Roth and if they never use the money; can pass the money on to their heirs, tax-free.
Roth Conversion and Your FAFSA
There’s no “if’s”, “and’s”, or “but’s” about it, a conversion is what is its and that “is” taxable. Many forms of scholarships, grants, and loans are based on household income. In the event, you do a sizeable conversion, you’ll see your AGI rise and the financial aid office take a closer look.
The dollar amount you convert must be reported on your FAFSA (Free Application for Student Aid). Here’s a definition of the FAFSA form straight from their site:
The Free Application for Federal Student Aid (FAFSA) is the form used by the U.S. Department of Education to determine your Expected Family Contribution (EFC) by conducting a “need analysis” based on financial information, such as income, assets and other household information, which you (and your parents if you are a dependent student) will be asked to provide. The form is submitted to, and processed by, a federal processor contracted by the U.S. Department of Education (ED), and the results are electronically transmitted to the financial aid offices of the schools that you list on your application.
FAFSA is the application used by nearly all colleges and universities to determine eligibility for federal, state, and college-sponsored financial aid, including grants, educational loans, and work-study programs.
Bottom line, it’s all about the Benjamin’s and how many you have of them. If your AGI is higher because of a sudden increase due to a conversion, it could mean less financial aid to pay those tuition bills.
A New York Times article offered an example. Take a hypothetical family of four with a total 2010 income of $75,000 and one college student. For every $10,000 of taxable income stemming from a Roth conversion, the parents’ expected annual contribution to that student’s education would go up by $3,200 in a FAFSA estimate.1
Financial Aid Looks at More than One Year
When it comes to your income, financial aid considers more than just one year. As you know (or you will now), the default election to pay the tax on the conversion is to defer this year (2010) and split the remaining portions 50/50 over 2011 and 2012 tax years. Essentially, doing a conversion today could affect your chances of financial aid well until 2013.
What if Your Kids Are Young?
Then regarding college and financial aid, it shouldn’t matter. Now that still doesn’t mean that a Roth conversion is right for you.
The potential long-term benefits of a Roth IRA conversion are considerable. Double check with your financial advisor or tax professional to see if the decision is appropriate before you elect to make the move.
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How to use Credit Karma’s student loan calculator
If you’re applying for student loans or getting ready to start repaying your existing loans, Credit Karma’s student loan calculator is a useful tool to have on hand. The calculator can help you determine how much your potential monthly payments will be and how soon you may be able to pay off your loans. Keep in mind, the calculator only provides an estimate based on the information you provide. The calculator can’t account for additional factors like fees or alternative payment plans.
Here’s the information you’ll need to calculate your estimated monthly student loan payments.
Loan amount
Start by manually entering how much you borrowed or plan to borrow. If you’re not sure what the total cost of attendance will be, you can enter a ballpark estimate. You can use national averages to start or check out your college’s website to see its estimated costs.
Estimated interest rate
Next, you’ll enter your estimated interest rate, which is the cost you pay each year to borrow the money, expressed as a percentage rate.
For federal student loans, the interest rate is set by federal law. You can find this information by logging into your Federal Student Aid account. If you took out private loans, you may need to contact your loan servicer to get this information.
An annual percentage rate comprises the interest rate and fees. If you enter an estimated interest rate instead of an APR, this calculator may estimate a monthly payment that’s different from what you may be responsible for under the terms of your loan.
Life of loan (in years)
The life of your loan, also known as the loan term, is the number of years it’s expected to take you to repay the loan. For instance, if you took out federal student loans, the standard repayment plan is 10 years. But depending on your loan amount, your loan term could be more or less than 10 years.
What are the different types of student loans?
There are two main types of student loans — federal loans and private loans. Federal loans are offered by the U.S. Department of Education, while private loans are offered by private lenders, which include banks and credit unions.
You might want to begin by applying for federal loans since they come with fixed interest rates and typically include more borrower protections. When you apply for federal loans, you may qualify for either subsidized or unsubsidized loans.
Direct subsidized loans are designed to help borrowers facing financial need. Your college determines the loan amount, which can’t exceed your financial need. The main benefit of subsidized loans is that the government will pay for the interest while you’re in school.
In comparison, direct unsubsidized loans are available to undergraduate and graduate students whether they have a financial need or not. The amount you can borrow is based on your college’s total cost of attendance and other financial aid you receive. You’re responsible for paying any interest that accumulates while you’re still in school.
If your federal loans don’t cover the full cost of your education, you may decide to supplement them with private loans. Private loans are distributed by private lenders like banks or credit unions.
The terms of private loans are set by the lenders, and these loans tend to be more expensive than federal loans. Private loans are credit-based, so if you don’t have any credit history you’ll typically need to apply with a co-signer.
Is it smart to pay off student loans early?
If you’re financially able, you may decide to pay off your student loans early. There are typically no penalties to paying your student loans off early, but you’ll want to check with your lender or loan servicer to be sure.
Before you pay off your student loans, you’ll want to contact your lender or loan servicer to get a payoff quote so you’ll know how much you need to pay off your loans in full.
Do I have to pay my student loans if I’m unemployed?
If you’re unemployed or face financial difficulties in the future, you may want to pause your student loan payments. Whether this is an option may depend on if you have federal or private loans.
If you have federal loans, you may qualify for deferment or loan forbearance. Both options temporarily suspend your loan payments while you get back on your feet. But interest will likely accrue, so your loan balance will continue to increase.
If you have private loans, you may be able to postpone your payments. In general, your options with private loans may be less favorable than what you’d get with federal loans.
The rules around deferment or forbearance vary among lenders. After you apply for deferment or forbearance, make sure you continue making your loan payments until your lender decides whether to approve your application.