How Students Can Build a Smarter Financial Plan for a Tech Degree

Many individuals and families want to know if a technology degree will lead to a well-paying career in the software development, cybersecurity, data science, artificial intelligence, and/or engineering fields. In terms of cost, there is more than just the tuition to worry about when it comes to an education like this. Many of these programs are geared towards individuals who can afford to purchase a laptop computer that is able to powerfully run many different software applications, in addition to paying lab fees from time to time, in addition to the costs of taking many different certification exams. In some cases, individuals with technology degrees can end up spending thousands of dollars on these various expenses.

To reduce financial stress when pursuing higher education, it is very important to make a financial plan for the entire cost of education and not just for the tuition. A financial plan is very important, and it’s best to make a plan at the beginning of the academic year by calculating all the costs and thinking of the ways of covering all of them. This way, students will know how much they can afford to borrow and they will be able to avoid borrowing too much.

Start With the Full Cost of the Education, Including More than Tuition

Students planning to pursue degrees in technology should know that tuition represents only the largest of the many costs of attendance associated with these degree programs. In addition to tuition, students can expect to pay for laptops and software needed to complete required coursework, as well as for a variety of lab fees. Some of these fees may be charged on a per-credit basis, and students should also be prepared to spend money on various tools and software that their university may not provide.

One major item to take note of when trying to make a plan is that there are many hidden costs to school that can arise to surprise students who were not prepared. This means that a student should also try to estimate costs outside of tuition, such as the cost of a computer and software to complete work for school as well as necessary transportation, a place to live, food, internet, health insurance, and other expenses. In addition to these costs, students should also consider the costs of books and other supplies for class as well as for outside work that they do to complete their financial aid package. Some examples of hidden costs for technology-based programs include cloud storage, coding platforms, professional memberships, and even a portfolio or other online resources for potential employers to review.

After accounting for scholarships, grants, federal aid, work-study earnings, and personal savings, some students may still face a gap between the funding they have and the total cost of attendance. In that situation, it can be helpful to compare private loans for students as one possible way to cover the remaining expenses. Before borrowing, students should review interest rates, fees, repayment terms, and the total cost of the loan so they can choose an option that fits their budget both during school and after graduation.

Apply for Scholarships Beyond the University

Many students only search for scholarships offered directly by their college. However, technology companies, nonprofit organizations, professional associations, and local businesses may also provide funding for students pursuing technical fields.

Just because most scholarships are offered by a university does not mean that students should limit themselves to searching only for scholarships from that university. Many companies in the technology field, nonprofits and organizations, professional associations, as well as local businesses, offer technology scholarships to high school seniors and college students. These can be based on a student’s major in computer science, engineering, mathematics, or another related technical field. These scholarships can be based on other criteria as well, such as the applicant’s grade point average, activities outside of the classroom, research, or other specific areas of study. And there are some that are geared towards specific groups of students from underrepresented backgrounds in the technology field.

Applying for financial aid from these types of external scholarship programs can be a time-consuming task, and the potential award amounts may be relatively small; however, if there are multiple potential scholarship opportunities available, it is often worthwhile to apply for them, as even small awards can be used to help to pay for expenses that would otherwise be difficult to afford, such as textbooks, computer software, and certification study materials. Try to schedule some time each month to look for additional external scholarships, and be sure to keep a calendar or list of all of the relevant application deadlines. 

Use Part-Time Work Strategically

There are also many part-time jobs that can help support students’ finances while also helping to develop skills that will be useful in their future careers. For example, campus IT jobs, paid internships, freelance web projects, and technical support jobs can all be useful. While it is also important to try to get a job that will help support your finances while studying for a tech degree, it is also important to remember that you are a student and you can’t work too many hours. Long hours of studying for assignments, working on group projects, and completing lab work will leave you exhausted if you have a full-time job. So, while it is true that a job with higher hourly pay may be more desirable, a job with more flexible hours may be more valuable to you.

Remember, however, that even part-time jobs can have time-consuming work shifts and cause strain on the student’s academic workload. Thus, when deciding on the type of part-time job for financial aid for a tech degree, a student should be honest with themselves and base their decision off how many hours per week they realistically can work. For instance, a campus IT position or technical support at an after-school program would be an ideal choice for students because they offer flexibility of hours. Also, certain positions like an internship, even if it’s paid, can greatly help supplement financial aid for technology programs, as well as offer hands-on experience and potentially help open up job opportunities after graduation. A job that offers higher hourly pay but requires long hours and in turn negatively affects academic performance is not an optimal choice and would likely result in the student needing to borrow more in order to cover their academic costs.

Review the Plan Every Semester

Review your financial aid package for every semester and adjust your budget to fit the changes that have occurred in your financial aid award. Keep track of all of your expenses for the academic year in order to come up with a total cost for your education for the year. As you add up all of your expected expenses for the year, it will be clear whether or not you have sufficient financial aid to cover your expenses for the year. Use this information to make smart financial decisions that support your continued academic progress and long-term financial stability. There is no need to over-borrow to pay for expensive technology items. With a smart financial strategy and awareness of your financial options, there is no need to pay for every tool up front.