Figuring out how to pay for college for one child is hard enough, given today’s higher education costs, but what happens when you have two or more college-bound children? Figuring out how to pay for multiples kids to go to college is certainly a challenge!
With this in mind, we asked parents in our Paying for College 101 Facebook community how they manage it, especially with the recent changes to the Free Application for Federal Student Aid (FAFSA), which no longer takes into account the number of students that attend college at the same time. The change was designed to level the playing field for families who have multiple children without overlapping years in college, but it’s a drawback for those with multiple children in college at the same time.
Whether you’re in the first camp or the second, these tips can help you navigate the finances of paying for multiple kids in college.
Maximize Your 529 Plans — And Consider Having More Than One
Many parents said they were serious about putting money in the kids’ 529s and when grandparents asked about “big” Christmas or birthday gift ideas, they suggested putting money in their 529 accounts.
Keep in mind that you can change the beneficiary of your 529 plan at different intervals if you have more than one child in college, but the paperwork involved can become a hassle if your kids are close in age and you have to do it multiple times within a short time. This is when having a plan set up for each child is best.
Also, if the cost of one child’s college tuition is higher than their siblings or if you only have a short amount of time to replenish the account before the next child needs a payout, it may be best to have multiple plans.
Finally, more than 30 states provide tax benefits for 529 plan savers, which means having multiple plans may save you money on taxes.
Seek Scholarships — And Start Early
Finding scholarships takes time and grit, but it’s worth it if you have multiple children in college. One mom suggested looking for schools that allow students to stack scholarships without displacing any awards. This allows them to seek federal, state, institutional, and private scholarships that can be cobbled together to cover costs.
Students should continue looking for scholarships year-round in high school and while attending college. Keep a calendar of due dates to stay on track.
One easy one to apply for is the College Ave $1,000 Scholarship Monthly Sweepstakes. A new winner is selected each month.
Start With Community Colleges
General education requirements, which take up the majority of the first two years of college, are significantly less expensive when fulfilled at community colleges versus four-year institutions. One mom said her children chose community colleges with direct admit programs to state universities to make the academic and financial transition easier and more transparent, minimizing surprises.
Another parent said she agreed with her three kids: Attend a community college for the first two years or take out student loans. Two went away to school anyway thanks to scholarships, and the third opted for junior college first to avoid debt. Just keep in mind that the sooner they know your financial limits, the better! This way they can prepare.
Consider Taking a Job at a College Or University
Believe it or not, many colleges (about 90 percent!) offer tuition discounts to their employees and their dependents, and if you have multiple kids in college at the same time, that can add up to huge savings. It’s no wonder many parents consider switching jobs to take advantage of this benefit. Some schools allow students to attend for free, while others provide steep discounts. There is no universal policy regarding this benefit of employment; each school can create its own rules, so check with the colleges your children are interested in attending to see what they offer.
Keep in mind that in many cases there is a waiting period of up to two years before employees can receive this benefit, so you may have to switch jobs while your children are in high school and commit to that school early on. Some universities increase the tuition benefits with each year of service, rewarding longer-term employees with full tuition benefits.
Look for Jobs That Will Help Pay for School
In addition to everyday retail brands known for offering scholarships to employees, such as Starbucks, Chick-fil-A, Amazon, and Best Buy, some professions entice students to begin working first to have their education paid for by their employer. Nursing is one such field where many students secure jobs in hospitals that promise to pay for school so long as students commit to a minimum number of years working for them when they graduate. One parent said her daughter was able to secure multiple nursing certificates and degrees while working for a local hospital without having to pay a penny for classes.
Make Your Children Responsible for Some of the Cost
One mom told her kids early on that they were each responsible for $5,000 per year, which gave them a goal and a deadline (she chose July 31, which is when many schools start sending out tuition bills). Whether it’s saving birthday money or securing a part-time job, knowing they were responsible for this early on helped them plan and save, so there were no surprises.
A recent College Ave survey found that close to half of parents (46%) believe their child should financially contribute to their college education. As the parent did above, make sure to have an open discussion with your child on what you as parents can contribute and how they can best financially support their educational goals. If you need to borrow to cover costs, discuss who is taking out the loan and who is responsible for repayment.
Ask Schools About Discretionary Funds
Some colleges and universities have discretion in how to apply federal changes to their financial aid, and many will grant families discretionary funds if they have multiple kids in the same school. One parent said it saved him $11,000 per year!
Plan Ahead & Strategize for How to Pay for College for Multiple Kids
Paying for college for multiple children may seem daunting at times, but with the right planning and strategizing, there are ways to make college possible and affordable. Whether you’ll be sending two children to college or five, many of the tools and financial aid options are the same. Be sure to exhaust all of your “free money” options first and cover your financing gap with private student loans.
