4 Ways Community College Can Save You $15K or More on a Bachelor’s Degree

We found a way to shave more than $15,000 off your college bill. And it’s as easy as 2+2 — a community college transfer. 

That’s when a student spends their first two years earning an associate’s degree from a community college, then transferring to a university to complete their final two years and earning a bachelor’s degree. 

Let’s look at the numbers.

Including tuition and applicable fees, the cost per credit hour at an in-state four-year institution is $447, whereas a two-year community college costs $205, according to Education Data Initiative.

So, if an average bachelor’s degree requires 120 credit hours, the four-year education comes with a $53,640 price tag. 

But if you complete the first 64 hours at a community college, you’ll pay $13,120 to earn an associate’s degree, then $25,032 to complete your bachelor’s degree at the four-year college for a total of $38,152. 

That’s a savings of $15,488.

Considering the current American student loan debt burden tops $1.7 trillion, you might want to reconsider shelling out the cash to enjoy two extra years of cafeteria food and ultimate Frisbee tournaments.

We used our average credit hour cost analysis to calculate your savings to help you decide whether two years at community college could be worth your time and money.

4 Ways To Know if a Community College Transfer Will Help You Save Money

If you recognize these four traits about yourself before you start applying to schools, you could save thousands by starting your college career closer to home.

1. You (Generally) Know What You Want to Do

You don’t need to have your 10-year career trajectory outlined. However, if you have a general field of interest — fine arts vs. physics, for instance — community college can offer a good start and allow you to save money on changing majors … if you need to.

Finding your focus at the community college level can also help you avoid excess credit hour fees. Some states charge those for credit hours taken beyond the total number required to complete a degree. 

And, here’s the thing, If you do change your mind about your education — whether it’s deciding to change majors or discovering higher education isn’t for you after all — it’s two years of community college costs vs. the higher university rates. And, you’ll have an associate degree to show for your time. 

How Much Can You Save: You’d save $15,448 by discovering higher ed wasn’t for you after completing the first two years at a community college. That’s opposed to spending the first two at a four-year university and realizing the same thing.

2. High School Wasn’t Your Best Subject

Not a star student in high school? Walking into a university’s lecture hall with 300 other freshmen for your first general education class could be daunting. 

And considering an estimated 29.7% of college freshmen drop out after the first year, you wouldn’t be the only student to fail a class.

With their smaller class sizes, community colleges present a less intimidating introduction to collegiate coursework along with more personalized instruction.

Besides helping you complete your general education requirements, an improved community college transcript can give you a second chance at getting into the four-year institution you didn’t get accepted into the first time.

Don’t assume your past performance necessarily predicts your future success. 

Community college students graduate at equal to or higher rates from the 100 most selective colleges when compared to students who enrolled directly from high school or those who transferred from other four-year institutions, according to a study by the Jack Kent Cooke Foundation.

You’ll also have additional opportunities to snag funding when you make the leap with one of these transfer scholarships.

How Much Can You Save: If the average school year consists of 30 credit hours, you’d waste $6,150 if you dropped out after your first year of community college and $13,410 after your first year of in-state university.

3. Work-Study Won’t Pay the Bills

If you need to work full time while you attend school, starting locally provides a two-fer benefit.

First, community colleges afford more flexibility because they cater to non-traditional students — and because many of the professors have day jobs besides teaching. Schedules typically include night and weekend classes.

Second, you can use your associate degree to command higher pay at the job you take when you go on to complete your bachelor’s degree.

How Much Can You Save: By working a full-time job while completing your associate degree, you’d make $110,032 on average over those two years, according to the Bureau of Labor Statistics. Compare that to working 10 hours per week at minimum wage ($7.25/hour nationally) while attending the first two years at a university, which would earn you a total of $7,540. That’s a difference of $102,492 over those two years. And, even if you work full time at $7.25 an hour, you’d still only make $15,080 a year ($30,160 total). That’s a difference of $79,872.

4. You Like Your Parents (or at Least Your Town)

This is kind of a personal question. How much do you like your parents? And, perhaps just as important: How much do your parents like you?

Living at home for the first two years after high school — whether you attend a community college or a university close enough to home for a cheap commute — can help you save on rent, utilities and even food. (Please clean up after yourself. Your parent is not your maid.)

And sure, you don’t get the full “campus life” experience by foregoing your first two dorm years, but keep in mind the distractions — and costs — on-campus living and meal plans add to your student loan debt.

How Much Can You Save: Even if you aren’t living at home, room-and-board estimates for a commuter college are $9,970, compared to $12,770 at a public four-year university, as reported in the 2023–24 College Board’s Annual Survey of Colleges. So, staying close to home would save you $2,800 over two years.

Tiffany Wendeln Connors is a former staff writer at The Penny Hoarder. Senior multimedia producer Chris Zuppa contributed to this story.