Finding a Solution to the High Cost of College

By Joe Messinger, CFP®

February 9, 2024

3 min READ

Families with college-bound students are always looking for a magical solution to the high cost of college. Our “magical” solution at Capstone Wealth Partners is careful planning.

In all seriousness, creating a plan that combats the hefty college bills many families face today means saving proactively, researching colleges, considering tax strategies, applying for scholarships, understanding your cash flow, and developing a smart borrowing strategy.

With the ever-increasing cost of college, families must closely examine what they can afford. It’s also helpful to consider other ways to reduce the cost of college for your family.

Pursuing an additional program, like studying in a foreign country or using employer-sponsored programs, may be an option that helps you combine the best of both worlds — a great educational experience with lower tuition bills. Let’s explore a few out-of-the-box ideas!

Can my student go to a university in Germany for free?

The short answer? Yes!

Many countries in Europe consider free education to be a right, not a privilege, and their tuition is free.

Most higher education programs in other countries will incur fees, although these are a fraction of the costs in the US. Additionally, you should consider the standard of living in other countries. While tuition in Norway is free, living expenses are high.

Germany, France, and Iceland are among the list of countries that offer free tuition to US students. Not every country will offer classes in English (or they may charge higher fees for English courses), so keep that in mind. Germany is one country with a high proportion of English programs for university education.

Also, pay attention to resident permit requirements for students spending more than a certain number of months in a foreign country. These vary by country.

Can a student receive federal financial aid for a college in another country?

Yes and no. The federal government includes student loans in their definition of “financial aid” so you can receive federal student loans to help pay for an education in a foreign country. However, students cannot receive federal grants for a degree at an international university.

To obtain federal student loans, a family must complete the FAFSA just like if the student was attending a US college. The Department of Education lists eligible foreign institutions here.

Remember, programs and requirements are always in flux. Not every college in a foreign country will offer free tuition. The prerequisites to obtain admission must be met. The practices of the past may change in years to come. Do your research. For the right student, the opportunity may be just the thing.

A second area to consider is leveraging an employer-sponsored tuition program.

Companies like McDonald’s and Starbucks have developed programs to help employees pay for college. Tuition assistance programs are a great way to attract and retain employees and broaden their education.

McDonald’s Archways to Opportunity™ program has awarded over $14 million in high school and college tuition assistance, including scholarships to employees. The awards are small and based on hours worked each week, but every little bit helps.

Starbucks offers a College Achievement Plan, which provides 100% of the cost of tuition for online courses through Arizona State University. Starbucks also has a program to help students qualify for admission by taking up to 10 freshmen-level coursesto earn admission to ASU.

These examples just scratch the surface of available opportunities for students. There are countless ways that families can help their students achieve the education theyneed to continue their careers doing work they love without taking on massive amounts of debt. Taking the time to research different ideas and exploring alternate college pathways can save you a pretty penny in the long run.

Have questions? We encourage you to reach out! There are so many ways that families today can minimize the cost of college, and we’re here to help act as your support system and guide.

Updated: February 2024