Below are answers to many frequently asked questions by parents.

Ideally, you should have begun saving when your child was born, but it’s never too late to start! It’s tough to keep up with the cost of college, but, as a parent, you may want to provide as much as you can for your child’s college education. No matter how close your child is to graduating from high school, financial planning will help you set spending priorities and develop savings and investment plans.

Any amount of money saved today will help. It is a common mistake to think that saving will prevent a student from qualifying for financial aid. It’s true that financial aid needs assessment considers savings and assets; however, they also take into consideration the age of the parents and their need to save for retirement. Remember that any savings may help reduce the need to borrow money, a situation that usually requires years of repayment.

The cost of higher education can vary widely depending upon the type of college, the program of study and the region of the country where the college is located. Total cost of education usually takes into consideration tuition and fees, housing and food, books and supplies, and transportation and personal expenses. The following chart shows you the approximate average cost of attending an in-state college or university in 2027-28. This is based on a North Dakota resident living on-campus with a 5% annual rate of inflation:

Estimated Cost of Attending College in 2027-28*

* For a complete listing of college costs, contact the college or university of your choice for the actual cost of attendance.

Savings and investment options to consider include:

• College SAVE – North Dakota’s college savings plan, administered by Bank of North Dakota, helps families invest for future college expenses. The BND Match can be utilized by four out of five N.D. families, adding an extra $300 in college savings to those who qualify. You can deduct up to $5,000 (up to $10,000 for a married couple) of your College SAVE contributions from your N.D. state taxable income, and your earnings grow tax free. A College SAVE account may be used at any qualified school providing postsecondary education in the country.
• Certificates of Deposits – CDs are issued by insured financial institutions that pay fixed rates of interest for specific time periods. These are considered safe investments.

• Series EE Savings Bonds – Issued by the U.S. government, income from Series EE Savings Bonds bought after 1989 may be tax exempt if used to pay for college tuition and fees. For more information, consult your tax advisor or visit the U.S. Department of Treasury’s website at savingsbonds.gov/savings-bonds/tax-information-ee-i-bonds/using-bonds-for-higher-education/
• Regular Savings Accounts – Monthly contributions to these accounts are one of the most fundamental methods for building financial reserves.
• Education IRAs and Mutual Funds – These investments should be discussed with an investment broker.

• Scholarships – These funds are awarded to students for academic performance, skills, achievement, need or other qualifications. Scholarships generally do not need to be repaid. Also, beware of scholarship scams. It does not cost anything to apply for a scholarship. N.D. offers various scholarships to N.D. residents. You can find more information on state scholarships at ndus.edu/paying-for-college/ . In addition, North Dakota Dollars for Scholars, which is administered by BND, offers a variety of scholarships to high school seniors and college students who are attending or have graduated from a North Dakota high school or home education program. Students can create a profile and track activities and accomplishments throughout high school, so they’re ready to apply their senior year and during college..
• Grants – Federal Pell Grants and Supplemental Education Opportunity Grants (SEOG) are available through the U.S. Department of Education. Complete the FAFSA at studentaid.gov/. North Dakota provides a State Student Incentive Grant Program (SSIG), which offers need-based grants to ND college students. Visit ndus.edu/paying-for-college/ to learn more about this program. Grants do not need to be repaid.
• Work-Study Programs – The federal College Work-Study Program administered by each college enables students to work on or off-campus while enrolled in college.
• Student Loans – Many students need to take out loans to help pay for college. It is recommended that you compare interest rates, fees and repayment terms of all options before choosing a student loan. The most important thing to understand is that loans need to be paid back, with interest. Federal and private student loans are available to students who attend eligible institutions if students or their families need additional funds to pay for college. Each type of loan has different qualifications and terms.
• To learn more about student loans and how much is too much to take out, visit bnd.nd.gov/confident. You can find the starting salaries of careers that your child is interested in and plug those into the calculator provided to get a target for the maximum amount of student loan debt that is recommended by financial experts. There is also information about BND Student Loans and other resources to help your child make informed and confident decisions as they consider different careers, educational costs and their financial future.

Financial aid funds can be limited, so it’s important to get a head start! The first step is to apply for admission to the college or university of your choice. Then complete the Free Application for Federal Student Aid (FAFSA) online at fafsa.gov.Rather than completing your FAFSA starting October 1, there is a one-time delay in the FAFSA. For the 2024-25 academic year, you will complete the FAFSA when it becomes available, which is anticipated to be in December 2023. You’ll return to the October 1 timeline for the 2025-26 academic year.

If your child plans to attend college in the fall of 2027, you need to begin this process soon after October 1, 2026. To learn more about the FAFSA process, visit studentaid.gov.

For an early estimate of eligibility for federal student aid, complete the student aid estimator at studentaid.gov/aid-estimator at any time.

Visit collegehandbook.bnd.nd.gov for videos that will assist you in completing the FAFSA.

The College Handbook, written by Bank of North Dakota, is a trusted local resource for North Dakotans to answer questions about college and career planning. You may also follow Bank of North Dakota on Facebook and Instagram to receive college updates at your fingertips.