Your 5-minute guide to college costs

By MSN Money staff

Before you do anything else, apply for financial aid. Even if you think your family earns too much to qualify, send in the forms. Then try these tips:

• Look for scholarships. Many colleges offer academic scholarships that aren't based on need. (See the Scholarship Search Wizard and "The insider's guide to scholarships.")

• Besides scholarships, apply for loans (which you have to pay back) and grants (which you don't). (See "Find free money for college" and "The insider's guide to student loans.")

• The Federal Work-Study Program provides jobs for students, encouraging them to perform community service and work related to their studies to help pay for education expenses. Many schools also have on-campus jobs that are not part of the program but offer tuition discounts and wages.

• Negotiate your aid package. At some colleges, as many as 75% of students who appeal their financial aid receive extra money.

• Programs such as AmeriCorps, Vista, the ROTC and the Peace Corps will help pay off student loans or provide funds during college in exchange for a service commitment upon graduation.

• Tax breaks on 529 plans and larger deductions also are available. Talk with a tax professional. (See "Uncle Sam will help pay for college.")

Pick up credits where you can

The more credits you can bring with you, the less money you'll pay to a four-year university.

• Take the first two years at a community college, which has lower costs and easy-to-transfer credits. Pick one that has an articulation agreement with a four-year university. It's quite common and specifies which community-college credits will be accepted toward a bachelor's degree at the four-year institution. (See "College for half-price.")

• If attending a four-year school, take summer classes at a community college near your home.

• Get college credit early. Many high schools offer college-level classes to prepare students for Advanced Placement exams. Some colleges also may let you take College Level Examination Program exams to receive college credit.

Paying for the basics: Eating and sleeping

The cheapest room and board is living with Mom and Dad. Commuting from home can save as much as $6,000 a year. But if you go away to school, try these tips:

• If your college requires you to live on campus the first year, don't automatically accept the three-meal-a-day food plan if you're not going to use it. Consider a once- or twice-a-day plan.

• Furnish your dorm room in early American thrift shop rather than new décor.

• Be a resident assistant. Typically open to undergraduates after freshman year, this job involves some work and a commitment to be on call at certain times, but it usually comes with a break on room and board. Plus, you can learn leadership skills for the post-college world.

• Ask your family to buy you a home. It's not such a crazy idea. If other students rent rooms in the house, the income could offset monthly mortgage payments. Families should make certain, however, that the property they purchase meets all of the requirements of rental property. Consult a tax professional. (See "Buy your college kid a condo?")

Textbooks: Read 'em and weep

College students can spend nearly $1,000 a year on textbooks. But there are a growing number of options. Find out what books you need (title, author and ISBN, or international standard book number), then get busy -- and don't wait until the last minute.

• Find used books online through Craigslist.org, eBay's Half.com and Campus Book Swap. Textbook prices are highest online in August, September, January and February.

• Purchase electronic textbooks. If you do most of your work on a laptop computer and don't mind e-books, purchase them as downloads and cut the cost in half.

• Look for free books. Onecompany, Freeload Press, provides some electronic texts at no charge in exchange for placing advertisements within the books. Other sites, such as Bartleby.com, offer classic literature to be downloaded free.

• Look on a publisher's Web site for alternative formats that are less expensive, such as soft-cover editions and e-books.

• Consider purchasing an international edition, which typically is cheaper than a U.S. edition of the same book. The differences between the editions are usually cosmetic, and the content almost identical. Search for international editions at sites such as AbeBooks.com or TextbooksRus.com.

• Share books with other students or use a library copy. This could make you more efficient with your time because you will have to do your work before the last minute.

• Resell your books when you're through. If you do that, remember to handle the books with care and not mark them up.

Little things can add up

Students have lots of small personal expenses. Maintain a written budget. (See "Simple ways to make college cheaper.")

• A car is a killer if you're footing the bills. Especially if you live on campus, getting rid of it is the fastest way to pare expenses. If possible, walk or buy a monthly bus pass.

• Compare cell-phone plans. Some carriers entice students with discounts or enhanced service. Know that you -- not your family -- will pay the extra charges if you exceed the allotted minutes.

• Many schools require students to have a personal computer. If possible, use a basic PC rather than an expensive laptop. Remember to factor in the costs of software, a printer and, if you live off campus, an Internet connection.

• Find out whether you are being charged for insurance or another health-care fee by the college. If it duplicates your family coverage, get the charge waived.

• Stay on track to finish in four years or less. Decide on a major area of study early on or you could find yourself tacking on years -- and additional debt -- to your college career.

If you've got a hint we haven't included or find a factual error, let us know by sending an e-mail to Five.minute@hotmail.com.

Published July 26, 2007