College Funding the Smart Way: Avoid Debt with These Strategies

I’m pretty sure when I went to the University of Illinois and studied Landscape Architecture (BLA) from 1994–1998, tuition was about $5,000 per year, and housing was another $5,000. I lived in Illini Tower, a renovated frat house, and a shiny new apartment building. My dad paid for it in cash and even had some left over for Tanya and me when we got married.

Fast forward to today: that same BLA costs close to $38,000 a year [1], with off-campus housing adding up to another $15,000 [2]. Per year! Wow.

No wonder there’s a crisis in funding college. I won’t preach about why costs have skyrocketed, but I’m hopeful the winds are changing. Here are some mindset shifts and practical ways to fund college the smart way.

Do I Need College?

In the ‘90s and where I grew up, it was assumed that you had to attend a four-year school to succeed. I never questioned it. Today, fewer high schoolers see a bachelor’s as the best path, with many considering trades or certificates instead [3]. Nearly one in four employers is dropping degree requirements for some roles, valuing skills and experience over diplomas [4].

For sure, some professions, like doctors, lawyers, and engineers, require specific education paths, but I share this to bust you out of preconceived mindsets. Culture is changing, and maybe it’s the high cost driving that change.

School Choice Matters

The #1 driver of your college costs? School choice. Please don’t let the party scene, the beautiful campus, the prestige, or “The Experience” control your decision. Those reasons can lead you to make financially unwise choices. Weigh the value of the degree against the cost, and don’t forget to include books, fees, and living expenses in addition to tuition and the place you will live.

The quality of your education depends on your seriousness as a student. Great instructors are at every school. No one ever asks me where I got my degree or even what I studied. Here’s some food for thought as you evaluate options:

• In-State or Out of State: Going to an in-state public university has significant cost advantages. At the University of Illinois Urbana-Champaign, in-state undergrads pay $17,600 a year, while out-of-state students $36,700 for the same program [5][6]. That’s over $76,000 saved over four years!

• Community College or Four-Year University: Consider starting at a community college, especially if you’re still figuring out your path. In Illinois, swapping two years at U of I for a local community college before transferring to the BLA program saves about $25,500 in tuition alone [7][8]. Plus, staying local likely means room and board costs are taken care of by living at home, saving even more.

• Public or Private: Private universities often cost double what in-state public schools charge. The average private school runs $39,000–$50,000 per year, compared to $11,000–$18,000 for in-state public [9]. Over four years, that’s an extra $100,000 or more. Choose wisely.

• Technical/Trade School: These schools are affordable and often overlooked, but that is changing. Programs usually last 1–2 years, cost $5,000–$20,000, and lead straight into solid careers such as plumbing, electrical, software development, cybersecurity, or healthcare. These are all tremendous careers that ROI in short order.

Who Will Pay? You or Your Student?

Here’s a philosophical question: Who’s responsible for paying? Parents often feel guilt or obligation, but I encourage you to separate feelings from the practical decisions. Let your values, experience, and what you can afford guide you. Talk openly with your student early, setting clear expectations. It’s OK for parents to fund all, some, or none of the cost.

If You Pay, Here Are Some Options

Savings vehicles:

• 529 College Savings Plan: Tax-advantaged growth for a wide array of education expenses; some states offer extra benefits and tax breaks.

• Coverdell Education Savings Account (ESA): Tax-free growth for qualified expenses, with stiffer contribution and usage rules than a 529.

• Taxable Brokerage Account: No contribution caps, liquid, distributions for any reason, but investment income is taxable along the way.

• Regular Savings Account: Low risk, highly liquid, and flexible, but growth won’t outpace inflation.

One of our financial planners can help you define your savings goal and calculate how much you need to save to get there.

Tax Credits:

If your income qualifies, these credits can offset costs in a meaningful way, too. Tax credits offset dollar for dollar your bottom-line tax bill. This is the government giving you free money towards your new undergrad’s education.

• American Opportunity Credit (AOC): Up to $2,500 per student per year for the first four years.

• Lifetime Learning Credit (LLC): Up to $2,000 per return for undergrad, grad, or professional courses (even for parents’ continuing education).

One important thing to note: You can’t double-dip by using tax-advantaged savings and tax credits for the same education expense, so track those carefully.

What If Your Student Pays?

Why not let your student have skin in the game? Research shows students working 10–20 hours a week often have higher GPAs and better graduation rates [10][11]. My son earned over $6,000 one summer working 20–30 hours a week at a garden center. That’s meaningful money toward his education. I held down a couple of jobs during college (tech support in the law library and delivering pizzas) for extra spending money.

PSA: College kids are depraved pizza tippers and sometimes pay with 100% coins!

Other Funding Sources

And here’s a motherload of other funding options. If this doesn’t get you believing that college can be made affordable, I don’t know what will.

Your plan of action should start by completing the Free Application for Federal Student Aid (FAFSA) as soon as it opens on October 1st of the year prior to the one you plan to attend. Aid is first-come, first-served, so don’t delay. While the aid package may include loans, students are not required to accept them and can choose only the aid types they want.

• College Scholarships & Grants: Most schools offer merit or need-based aid, so the average student rarely pays the sticker price.

• Government Financial Aid: Pell Grants, Federal Supplemental Educational Opportunity Grant (FSEOG), and Illinois’ MAP Grant help low-income and moderate-income students.

• Private Companies: Companies like Starbucks, Disney, Walmart, and Chipotle offer tuition assistance, sometimes covering 100% of costs for certain degrees.

• Military and GI Bill: Another underappreciated option is the U.S. military. Active-duty personnel can receive up to 100% tuition coverage, and veterans can use the GI Bill for tuition and fees, often graduating debt-free.

• Private Foundation Scholarships: This is often underemphasized and overlooked. Countless families have set up scholarships and grant funds that fit your situation specifically, which you can find through the Community Foundation Locator.

A Quick Word on Student Loans

I placed a snippet about loans last on purpose because I want you to explore every other option first. Debt can crush you. $50,000 or more repaid over decades is a heavy burden. I know a couple earning $200,000 a year, drowning in student loans, struggling to buy a home, and delaying starting a family. Yes, you can deduct loan interest at lower income levels, but that’s no reason to take on loans.

That said, loans exist. If you must borrow (I cringe at even saying that), understand the terms fully. Public loans have programs like Public Service Loan Forgiveness (PSLF) or Income-Driven Repayment (IDR), but repayment can stretch 10 or even 20–30 years, and forgiven balances through IDR are taxable.

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Getting Out of the Box

Smart college funding means thinking differently. Maybe you work part-time, attend community college, delay enrollment until you’ve saved, or stretch out your graduation timeline. You might scoff, but do you want a decade or more of loan payments? Our team can help you strategize creative college funding if you’re ready to think outside the box. Are you willing to work at Chipotle or Walmart to make it happen?

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Footnotes

[1] University of Illinois Urbana-Champaign. Bachelor of Landscape Architecture (BLA) program costs (2025).

[2] Apartments.com. Average rent in Champaign, IL – Off-campus housing near UIUC (June 2025).

[3] EducationWeek. “Just Try It Out: What’s Behind a Shift Away from 4-Year College” (2024). Link

[4] HR Dive. “A Quarter of Employers Plan to Eliminate Degree Requirements in 2025” (2025).

[5] University of Illinois Urbana-Champaign, Undergraduate Tuition Rates 2024–2025 (In-State).

[6] University of Illinois Urbana-Champaign, Undergraduate Tuition Rates 2024–2025 (Out-of-State).

[7] Illinois Community College Board (ICCB), Cost of Attendance, FY 2025.

[8] University of Illinois Urbana-Champaign, Undergraduate Tuition Rates 2024–2025.

[9] College Board, Average Tuition and Fees by Sector 2024.

[10] McDaniel College, Balancing Work and College Performance.

[11] University of Pennsylvania Wharton Budget Model, College Employment and Student Performance.