The cost of going to college is high, and unfortunately, it's only getting higher. For many families, saving enough to cover four years of their child's education isn't easy. Even if you're lucky enough to have some savings set aside, it's likely that your nest egg just won't grow as quickly as inflation over that period of time. But there are plenty of ways you can help ensure that your child gets through college without going broke or leaving school with mountains of debt.

Save Early and Often

Saving early and saving often is one of the best ways to ensure that you don't run out of money in the future. It's also the most important thing you can do if your goal is to pay for your child's college education. The earlier you start saving, the more time you have for investment growth relative to inflation rates. This means that even if interest rates are low, compounding will work in your favor of higher returns over time.

Research the Best Way to Save

Find out the best way to save and invest your money. All investments aren't the same, so you need to understand the different types, how they function and what kind of return you can expect. If you're new to investing, you should take some to research the different ways you can invest.

Consider Getting a Loan

If your child is about to graduate, you can also consider Earnest college loans for parents. A low-rate Private Parent loans allows you to borrow money for your child's education. You can borrow only enough to pay for tuition, or opt to borrow more so your child can live on campus. Just be sure to not overextend yourself financially.

Look to State Sponsored 529 Plans

In addition to the above-mentioned options, you can also look into 529 plans. Here's are a few things you need to consider:

  • You can compare plans on the website of the College Savings Plans Network, which is run by the states and provides information on over 130 plans nationwide.
  • Once you choose a plan, you need to open an account and deposit money into it. Most states allow residents to open accounts with any amount (usually up to $5,000 per year), but some do have minimum amounts or start-up fees that may be too expensive high for low-income families or young adults who want to invest early. That's why it's important to start early, and research all of your possible options beforehand.
  • Contribute as much as you can afford each year towards your child's education fund; even if it's only a little bit here and there (or using some of their birthday money), every dollar helps. Remember that once their 18th birthday rolls around (for most states), contributions will stop being tax deductible, so make sure before then that they're financially ready for college.

Consider a Custodial Account

If you want to start saving for your child's college education, an Education Savings Account (ESA) or Uniform Gift to Minors Act (UGMA) custodial account is a great option. These accounts are tax-advantaged and can be held in your child's name. For this reason, they're also referred to as 529 plans. When you open an ESA or UGMA, your child has ownership over the money in the account. You don't have access to it unless he gives his permission. Effectively, an ESA/UGMA allows young adults (and older ones, too) to save for their own future expenses without having to worry about their parents dipping into savings. Plus, there are no age limits on when children can open these accounts; even teens who want a head start on saving will benefit from opening them early on.

Research Other Methods of Getting Free Money for College

In addition to saving more money to pay for college, there are many different scholarships, grants, work-study opportunities, and other methods of getting free money for college that require little or no financial aid application process. These programs will award up to $30,000 per year to cover tuition costs during your four years at an accredited institution of higher learning.

Have Your Child Live at Home or in The Dorm

If your child is going to live on campus, he or she will probably have to pay for housing. Depending on the school and what type of living arrangement your child chooses, this could cost anywhere from $9,000-$12,000 per year. That's an expensive price tag for just a place to sleep. A cheaper option would be for your child to live at home or in an apartment with roommates nearby. This ensures that they're practicing good time management skills, while also saving money by eliminating the cost of dorms and meal plans.

Choose In-State Community College

Community college is a great way to save money and give you a chance to get used to school. You can also transfer credits into the four-year university of your choice, so if you find that community college isn't right for you, it won't be too much of an obstacle when it comes time to transfer there.