Saving for College: A Guide for Students and Parents

7 College Savings Tips to Make Higher Education Affordable

Whether you’re a student or a parent, saving money for college can feel overwhelming, especially as tuition and fees continue to rise across the country.

However, with some thoughtful planning and smart strategies, you can make college more affordable—whether you’re getting ready for college yourself, just starting to save now for your young child or you have a student who will be heading to campus soon.

Here are seven college savings tips and practical ways to ease the financial burden of higher education:

#1. Start at a Community College

First and foremost: attending a community college is one of the smartest ways for students to save money and stay out of debt. Front Range Community College tuition is 56% less than tuition at Colorado’s four-year colleges and universities.

Even if the student doesn’t take advantage of the statewide transfer agreements—which allow A.A. and A.S. graduates to enroll as juniors at four-year colleges or universities—they can still save big by taking a few courses at FRCC. Guaranteed transfer courses (also known as GT Pathways courses) meet the general education curriculum requirements of all public colleges and universities in Colorado.

That means students can knock out several general education courses at FRCC and easily transfer them to a four-year college or university. Learn more about how to save by starting college at FRCC.

#2. Open a 529 Plan

A 529 college savings plan is designed to help people save for future education expenses (including college tuition, fees, books, room and board, and even K-12 tuition). Anyone over the age of 18 can open a 529 plan—for themselves, a child or any other beneficiary.

You can contribute money and grow it tax-free, and earnings and withdrawals are also tax-free if used for qualified education expenses. There are no income limits for contributors or beneficiaries. In Colorado, we have CollegeInvest, which offers several 529 college savings plans:

It’s important to note that 529 plan assets owned by parents have a low impact on federal financial aid eligibility compared to assets held in a student’s name.

Colorado residents also receive a state income tax deduction for their contributions to Colorado 529 plans, but they’re welcome to open 529 plans in other states if they find one with lower fees that better aligns with their risk tolerance and financial goals. Learn more about buying 529 plans in other states.

#3. Invite Others to Contribute to Your Child’s 529 College Savings Plan

If you’re comfortable, invite family and friends to contribute directly to your—or your child’s— 529 college savings plan for birthdays and other special occasions. Coloradoans are eligible for the state income tax deduction mentioned above.

Contributions qualify for the $19,000 annual gift tax exclusion per beneficiary (for 2025), which makes 529 plans a great estate planning tool for grandparents. Learn more about the tax and estate planning benefits.

#4. Explore Free Money Offered by CollegeInvest

Colorado residents who open 529 plans may qualify for First Step, a program that provides a one-time contribution (currently $118) to a CollegeInvest account for each child born or adopted in Colorado on or after January 1, 2020. It’s free and you can open a plan with $0. The account owner has until the child’s eighth birthday to claim the award.

In addition, parents or legal guardians who enroll in First Step by December 31, 2025, can receive matching contributions up to $500 per year for five years (a maximum of $2,500) from CollegeInvest, provided contributions are made by the parent/guardian. So, if you have a young child, take advantage of this incentive and apply by the end of the year! Learn more about First Step.

#5. Fill Out the Free Application for Federal Student Aid (FAFSA)

When the time comes to enroll in college, step one of the financial aid process is to complete the FAFSA. This is every student’s gateway to federal financial aid, including merit-based and need-based scholarships, Pell grants (which do not need to be repaid), loans and work-study jobs.

Many states and colleges (including Colorado and FRCC) use the FAFSA to determine students’ eligibility for state-funded aid, including institutional scholarships and grants. The funding

students get by filling out the FAFSA has a huge impact on their ability to complete college credentials. (In recent years, more than two-thirds of FRCC students who applied for financial aid received grants that fully covered their entire tuition and fees.)

Filling out the FAFSA early increases a student’s eligibility for limited federal and state grants because aid is often awarded on a first-come, first-served basis from a finite pool of funding. Completing the FAFSA doesn’t take long, and it’s worth the time. It’s the best way to unlock access to federal, state and college funding opportunities.

The FAFSA opens on October 1 each year, and at FRCC, it needs to be completed by the priority consideration date of April 1 (although, as we mentioned, earlier is better). Learn more about the FAFSA and all steps to securing financial aid at FRCC.

#6. Apply for the College Opportunity Fund (COF)

COF is a Colorado program that provides a stipend to eligible undergraduate students (Colorado residents) attending participating public and private colleges and universities. Put simply, COF is like a tuition discount!

The COF stipend pays a portion of in-state tuition on a per-credit hour basis directly to the college where the student is enrolled. Students are allotted 145 undergraduate credit hours to use over their lifetime.

The process starts with a one-time application, and students must authorize their college to receive the COF funds. Learn more about COF.

#7. Explore Other Scholarship Opportunities and Ways to Save

There’s a lot of support out there, from private and nonprofit scholarships to state programs to tuition savings programs. Here are three worth researching:

• FRCC Foundation scholarships: The foundation awards merit-based and financial need scholarships. The application period for this scholarship is December 1 – March 1 of each year.
• The Western Undergraduate Exchange (WUE), which allows students in the Western Interstate Commission for Higher Education region who attend WUE schools to receive tuition savings.
• Colorado Promise, which reimburses income-eligible students tuition and fees for the prior academic year via a state tax credit).

The key to saving for college is to start early and take advantage of the funding and programs available to your family. Explore some of the above options, and if you—or your student—are planning to attend (or already attending) FRCC, contact the Financial Aid Office for more ideas and suggestions!