Financial Planning and Transferring, Part II

In Part I, we examined all that you need to consider when determining the comparative affordability and value of different transfer institutions. However, no matter where you choose to attend, there are a number of strategies to lower your total costs.

First, there are often financial advantages to completing an Associates degree before transferring. As long as you are following transfer guidelines for your transfer institution and major, then the courses you take at the community college will all count toward your Bachelor's degree. In most cases, it will cost you less to take courses at the community college, as opposed to a four-year institution. Also, there are a fair number of scholarship opportunities that are only available to students transferring with an Associates degree.

Second, be sure to apply to your transfer institution early. Most institutions have priority deadlines for financial aid and scholarships in March. So, if you are preparing to transfer in the fall, you need to complete your admissions application the previous December. This will ensure that you are accepted into the institution  in time to complete all financial aid and scholarship applications by March.

Third, there is often more financial aid available if you start at your transfer institution in the fall. While your federal financial aid (Pell grant, Direct loans) will be the same regardless of when you transfer, an institution may expend or earmark its scholarships, other grants, and work-study funds based on fall enrollment. If you start in the spring, these funding pools may already be used up.

Fourth, be sure to file for education tax credits if you have out of pocket expenses. Due to the lower cost of tuition and fees at the community college, you may not have had eligible expenses to claim an education tax credit when filing your income taxes. With the higher cost of a four year institution, be sure to check if you are now eligible for these refundable credits.

Finally, it is always a good idea to use a monthly budget to make the most effective use of your funds. By tracking your income and expenditures, and setting spending targets accordingly, you can make informed decisions about where your money goes. Also, if you need to supplement your income with a student loan in order to cover you expenditures, a budget allows you to pinpoint the exact amount of loan you need to take out, and not a penny more. In the long run, this will save you money by reducing the amount of interest you pay on your student loans.