When families think about cutting college costs, two strategies usually come up first: scholarships and early college credit. Both can reduce your out-of-pocket expenses significantly—but they work in very different ways. And while some families treat them like either/or options, the truth is that you can do both.
Scholarships sound ideal—who wouldn’t want free money? But the truth is more complicated. While scholarships can absolutely reduce college costs, many families misunderstand how they’re awarded and end up chasing prestige instead of savings. In other cases, students have to attend longer, take more credits, or spend more to use the award.
Pros of Scholarships:
- They can reduce (or eliminate) tuition
Merit scholarships—usually based on academics, leadership, or test scores—can cut tuition dramatically. Some are even full tuition or full ride. But they’re rare. Most scholarships do not cover full tuition, so they should be considered “coupons” or “discounts.” - Need-based aid exists too.
If your family’s income falls below a certain level (often around $60,000–$80,000), your student might qualify for automatic financial aid, especially at colleges that use the FAFSA or CSS Profile. But beware: this aid is often tied to expensive schools and if your income increases, your teen’s tuition will too. - Scholarships are best at “match” schools
When a student applies to a school where they are a top applicant, that school may offer serious money to recruit them. Unfortunately, many families bypass these schools and send their teen to a more “prestigious” college where they’re just average—and end up paying full price.
Cons of Scholarships:
- “Reach” schools rarely give the best aid
Getting accepted into a competitive college is exciting, but if your student is at the bottom of their admitted class, they’re unlikely to receive big scholarships. In fact, that school might give them nothing. - “Online only” schools rarely give scholarships, and none provide full-rides.
- You may sacrifice fit or flexibility.
Sometimes, the school offering the most aid isn’t the one your student prefers. And if the aid is tied to certain GPA requirements, credit loads, or living arrangements, you lose some control over your student’s experience. - They’re not guaranteed.
Scholarships can be rescinded. If your financial situation changes, or your student’s GPA drops, they need to lighten their course load, or they take a medical leave, their aid could disappear.
Early College Credit: A Resourceful Family’s Best Friend (When Done Right)
For homeschool families especially, early college credit offers a strategic, predictable way to save money—but only if used with purpose. We call this “Resourceful High School Planning,” and it means that your teen is earning college credit in a way that is serving their high school and future college degree simultaneously.
Pros of Early College Credit:
- It saves money now, not later.
Most early college courses can be earned for around $100 per credit ($300 per course) or for free using exams like CLEP. When planned well, that means you can earn a full year of college for less than $3,000—instead of $20,000+. Since your student is in high school, financial aid is not an option, so if your familiy can incrementally pay cash during high school for one or two classes per semester, you can make a huge dent in the future cost of their degree. - It shortens time to degree.
With enough early credits, your student can apply as a freshman but rank up to a sophomore or even a junior once admitted. Less time to graduation reduces the costs of tuition, housing, and time away from home. Some argue that there are added financial reasons to start working a year or two earlier, especially if your teen enters a high paying career, but for this post we are just keeping the direct costs in mind. - It builds academic confidence.
Teens who earn college credit in high school often build strong study habits and feel more prepared for college-level work—especially when their first courses are in general education subjects like English, math, or psychology. I like to call this “proof of concept” because parents of HS4CC teens are already confident that their teen can do college work long before they head to college- that’s peace of mind for parents and teens!
Cons of Early College Credit:
- Random credit accumulation is risky.
If your student racks up too many unplanned or unrelated credits, they may hit the 150% cap—a federal aid rule that cuts off financial aid if a student exceeds 150% of the credits needed for their degree. That means of a 120 credit degree, students may lose access to financial aid if they are beyond 180 credits (6 years) and while I don’t think it’s wise to spend that long on an undergrad degree, it’s still a real consequence for those who do. HS4CC best practice: don’t go beyond 30 credits in high school without a solid target college and a specific major in mind. - Not all credits transfer or apply.
Some schools accept fewer dual enrollment credits. Some credits won’t fit the student’s degree, and if you aren’t taking courses that will apply, it can be a big disappointment. That’s why we recommend sticking to general education courses if you don’t have a target college or major picked out yet, or follow a degree pathway if your dual enrollment college offers one. Staying at your dual enrollment college is a slam-dunk-success strategy for making sure you have a perfect transfer plan in place. - Some courses are too niche.
Avoid courses that are highly specific or proprietary, like “Office Management in Hospitality” or “New Testament.” are not going to transfer well. Stick with the classics: English, history, math, literature, world languages, psychology and sociology, government, art appreciation, etc.
Final Thoughts: Do Both
Every student is different, and so is every family’s financial situation. But one truth holds for nearly everyone: the most affordable college plan combines early college credit with smart scholarship strategy.
- For average students, early credit is the most reliable way to save money because you can control your costs from the start.
- For exceptional students, strategic scholarships may offer bigger savings—but only if they apply to schools where they are a top applicant.
- For everyone, a thoughtful, intentional plan makes all the difference.
💡 Don’t choose one or the other—do both. And if you’re not sure where to begin, start with one general education course and see where it takes you.
