How to Pay for College During a Recession

Paying for college during good times can be difficult. But paying for college during a recession can be particularly hard, which is why you'll need a series of strategies to weather such a storm.

How to Pay for College During a Recession
Kenny Eliason

There are some disturbing signs of a coming recession. Notable banks have failed or have witnessed their valuation nearly wiped out. White-collar layoffs have been increasing more and more. Meanwhile, the overall unemployment rate in the United States has reached its lowest period in years — a trend that often occurs before the onset of an economic downturn.

Managing to pay for college during a recession can be challenging, but there are strategies that students and families can use to make college more affordable. In this BrokeScholar article, we will discuss some of these strategies and provide tips for managing college costs during a recession.

Apply for Financial Aid

One of the most important strategies for managing college costs during a recession is to apply for financial aid. Financial aid can help to cover the cost of tuition, fees, and other expenses associated with attending college. There are several types of financial aid available, including grants, scholarships, loans, and work-study programs.

To apply for financial aid, students and families must complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is used to determine a student's eligibility for federal financial aid, as well as aid from state and institutional sources.

It is important to apply for financial aid as early as possible, as some types of aid are awarded on a first-come, first-served basis. Even if a student or family does not think they will qualify for financial aid, it is still important to complete the FAFSA, as some forms of aid are available to all students regardless of financial need.

Consider Community College or Online Programs

Another strategy for managing college costs during a recession is to consider community college or online programs. Community colleges typically offer lower tuition rates than four-year colleges and universities, and they may also offer flexible scheduling options that can allow students to work while attending school.

Online programs can also be a cost-effective option for students, as they often have lower tuition rates than traditional on-campus programs. Online programs also allow students to attend school from anywhere, which can be beneficial for students who live in areas where there are limited college options.

Look for Scholarships and Grants

Scholarships and grants can be a valuable source of funding for college during a recession. Unlike loans, scholarships and grants do not need to be repaid, making them a cost-effective way to pay for college.

There are many different types of scholarships and grants available, including those based on academic achievement, athletic ability, and other factors. Students should research scholarship and grant opportunities early and often to maximize their chances of receiving funding.

Explore Work-Study Programs

Work-study programs can be a great way for students to earn money to pay for college while also gaining work experience. Work-study programs typically provide students with part-time employment opportunities on campus, and the wages earned can be used to cover college expenses.

Students who are interested in work-study programs should check with their college or university to see what opportunities are available and how to apply.

Reduce Living Expenses

Another way to manage college costs during a recession is to reduce living expenses. Students can save money by living with roommates, cooking their own meals instead of eating out, and using public transportation instead of owning a car.

Students can also look for ways to reduce the cost of textbooks, such as buying used or renting textbooks instead of buying them new. Additionally, students can take advantage of free resources on campus, such as the library and student health center, to save money on expenses.

Consider Part-Time Enrollment

Part-time enrollment can be a cost-effective option for students who are struggling to pay for college during a recession. Part-time enrollment allows students to take fewer classes each semester, which can reduce tuition costs and make it easier to balance school with work or other responsibilities.

However, it is important to note that part-time enrollment can also extend the amount of time it takes to complete a degree, which can increase overall college costs.

Seek Help from Financial Aid Offices and Non-Profit Organizations

Finally, students and families who are struggling to pay for college during a recession should not be afraid to seek help from financial aid offices and non-profit organizations. Financial aid offices can provide guidance on available aid programs and help students and families navigate the financial aid process. Non-profit organizations may also provide resources and support for students who are struggling to pay for college, including scholarships, grants, and financial counseling.

Students and families can also seek help from non-profit credit counseling organizations, which can provide advice on managing debt and creating a budget. These organizations can help students and families navigate the financial challenges associated with paying for college during a recession.

It is important for students and families to be proactive in seeking financial assistance and support. While paying for college during a recession can be challenging, there are resources available to help students and families manage the costs and continue their education.

Additionally, students can consider alternative forms of education and training, such as vocational programs, apprenticeships, and certifications. These programs can provide valuable skills and training that can lead to well-paying jobs and career advancement opportunities.

Consider Federal Work-Study Programs

In addition to regular work-study programs, students can also consider Federal Work-Study programs. These programs are based on financial need and provide students with part-time employment opportunities on or off-campus. The wages earned can be used to cover educational expenses. Students should check with their college or university to see if they are eligible for Federal Work-Study programs and how to apply.

Explore Loan Options

While loans should be used as a last resort, they can be a viable option for students who need to pay for college during a recession. Federal loans are typically the best option, as they offer lower interest rates and flexible repayment terms. Private loans should only be considered after all other options have been exhausted, as they often have higher interest rates and less favorable terms.

Students should also consider taking out loans only for necessary educational expenses, and avoiding borrowing more than they need. Students can use loan repayment calculators to estimate their monthly payments and create a repayment plan that fits their budget.

Consider Military Service

Another option for paying for college during a recession is to consider military service. The military offers a range of educational benefits, including tuition assistance, scholarships, and loan repayment programs. Students who are interested in military service should research their options and talk to a recruiter to learn more about the benefits and requirements of military service.

Look for Employer Tuition Assistance Programs

Many employers offer tuition assistance programs as part of their benefits package. These programs can help employees pay for college while working, and may be especially valuable during a recession when jobs may be harder to come by. Students should check with their employer to see if tuition assistance programs are available and how to apply.

The Bottom Line on Paying for College During a Recession

Finally, creating a budget and sticking to it can be an effective way to manage college costs during a recession. Students should track their expenses and prioritize necessary expenses, such as tuition, fees, and books. Students can also look for ways to reduce discretionary expenses, such as entertainment and dining out, to free up money for educational expenses.

Thus, paying for college during a recession can be challenging, but there are strategies that students can use to manage college costs. Applying for financial aid, considering community college or online programs, looking for scholarships and grants (like those you’ll find in BrokeScholar’s library of scholarships), exploring work-study programs, reducing living expenses, considering part-time enrollment, seeking help from financial aid offices and non-profit organizations, exploring loan options, considering military service, looking for employer tuition assistance programs, and creating a budget and sticking to it are all strategies that can help students manage college costs during a recession. With careful planning and research, students can continue their education and achieve their career goals, even during challenging economic times.

Andrew DePietro

Author: Andrew DePietro

Senior Researcher, and Content Strategist

Andrew DePietro is a finance writer covering topics such as entrepreneurship, investing, real estate and college for BrokeScholar, Forbes, CreditKarma, and more.