The week of Oct. 20-24 is National Transfer Student Week, focusing on students who start their higher education at a community college, trade or vocational school, who then transfer to a four-year college to complete their bachelor degree. While continuing their education after high school, students can also take core classes at a lower cost and transfer those credits to a four-year college. It’s a smart way to save money on their education and still reach their goal. And a 529 plan can pay for the qualified costs at community colleges, trade schools, as well as colleges.
Community colleges and trade/vocational schools provide their students with a valuable education. Earning a degree or certificate from these institutions of higher education, it’s a great way to launch into a professional career.
If you look at the national average price of a credit hour, community college ones costs $150, while the average cost at a four-year public, in-state university is $406. If your child earns 10 credit hours at a community college on transferable core classes, the cost could be around $1,500. If your child took the same 10 credit hours of core classes at a four-year college or university, the average cost could be $4,060 or more. With this example, by taking the same required courses at a community college, you could still have $2,560 in your 529 account for future use.
Like saving in a 529 plan, the key is starting the transfer planning process as early as possible. If your student plans to start their academic studies at a community college to then complete it at a four-year program, let the community college’s academic advisor know before enrolling there. The counselor can guide your student to the four-year programs with which they have transfer agreements, and which courses are guaranteed to transfer and be applied to their bachelor’s degree. After your student has taken the core requirement classes and is ready to start the transfer process to the four-year program, they need to connect with their next school’s transfer office for guidance.
Another avenue for students to gain transfer credits is Prior Learning Assessments (PLA). Students can earn college credits by exam, like tests created by theCollege Level Examination Process or CLEP, and through a portfolio that contains a student’s applicable education learning.
Taking core requirement courses at a lower-priced community college is a smart way to keep money in your 529 account future use at a four-year school. Do your research, use the school’s resources and staff, and you can make the transfer process work well for you and your 529 savings.
If you’d like to learn more about saving for your child’s college or career training with a 529 plan, visit CSPN at collegesavings.org or search for your home state’s 529 program.
About the author:
Trisha Good is the executive director of Ohio Tuition Trust Authority. Since 1989, Ohio Tuition Trust Authority has sponsored and administered Ohio 529 CollegeAdvantage. Ohio’s 529 Plan oversees more than 682,000 accounts and over $19.5 billion in assets as of June 30, 2025. Visit CollegeAdvantage.com or call 1-800-AFFORD-IT (233-6734) for more information.