×
These AI Tools Can Help Your Family Save for Soaring College Costs
Written by
Published on
Join our daily newsletter for breaking news, product launches and deals, research breakdowns, and other industry-leading AI coverage
Join Now

Rising college costs strain family budgets: The average annual cost for college in the U.S. has reached $38,270, with a four-year degree totaling $162,776.99, presenting a significant financial challenge for most families.

  • The Education Data Initiative reports that costs are increasing by 4.11% annually, compounding the financial burden for parents and guardians.
  • The average amount saved in a typical family’s 529 plan is only $27,741, falling short of even a single year’s expenses.
  • Despite various investment options, 94% of families plan to pay at least a portion of college expenses out-of-pocket.

AI emerges as an unexpected ally: Artificial intelligence offers innovative solutions to help reduce the financial strain of higher education through various applications and tools.

  • AI-powered apps can assist with scholarship searches, budgeting, textbook cost savings, part-time job matching, and financial aid optimization.
  • These tools leverage machine learning algorithms to provide personalized recommendations and streamline complex processes.

Scholarship search optimization: Scholly, an AI-powered app recently acquired by Sallie Mae, matches students with suitable scholarships based on their academic and personal profiles.

  • The app analyzes a student’s academic record, extracurricular activities, and background to find relevant scholarship opportunities.
  • Scholly provides personalized application tips and deadline reminders to increase the chances of securing financial aid.

AI-driven budgeting and financial planning: You Need A Budget (YNAB) utilizes artificial intelligence to help families better manage their finances and save for college expenses.

  • YNAB analyzes spending patterns and suggests appropriate budget categories for users.
  • The app offers goal tracking features specifically tailored for college savings and provides educational resources on financial planning.
  • A generous month-long free trial period allows users to test the app’s capabilities before committing.

Textbook cost savings through AI assistants: Amazon’s Alexa can help students find the most cost-effective options for purchasing textbooks.

  • Alexa provides real-time pricing information from Amazon and potentially other linked marketplaces.
  • Users can set up price alerts for specific textbooks to take advantage of temporary deals or price fluctuations.
  • The AI assistant can compare new, used, rental, and digital versions of textbooks to identify the most affordable options.

AI-powered part-time job matching: Handshake, a student-centric app, uses AI to connect students with suitable part-time work opportunities.

  • The app analyzes students’ skills, interests, and schedule constraints to match them with relevant on-campus and off-campus jobs.
  • Handshake helps students build their resumes with relevant work experience while offsetting college expenses.
  • The app also provides tailored interview preparation tips for specific job listings.

Comprehensive financial aid assistance: The Mos app serves as a one-stop resource for optimizing financial aid opportunities.

  • Mos uses AI to guide students through complex application processes and identify relevant scholarships.
  • The app provides personalized advice based on each student’s unique financial situation.
  • Mos also offers a debit card and banking services tailored to students’ needs, using AI to help manage spending and savings goals.

The evolving role of AI in college financing: While artificial intelligence alone cannot fully bridge the gap between average savings and rising education costs, it offers valuable tools for informed decision-making and resource discovery.

  • AI-powered applications help families make more informed financial decisions and discover new resources for funding higher education.
  • As these technologies continue to evolve, they may further reduce affordability and accessibility barriers to higher learning.
  • The combination of early planning, smart budgeting, and leveraging AI tools can significantly improve families’ ability to finance college education.
5 Ways AI Can Help Pay For Your Kids’ College

Recent News

Nvidia’s new AI agents can search and summarize huge quantities of visual data

NVIDIA's new AI Blueprint combines computer vision and generative AI to enable efficient analysis of video and image content, with potential applications across industries and smart city initiatives.

How Boulder schools balance AI innovation with student data protection

Colorado school districts embrace AI in classrooms, focusing on ethical use and data privacy while preparing students for a tech-driven future.

Microsoft Copilot Vision nears launch — here’s what we know right now

Microsoft's new AI feature can analyze on-screen content, offering contextual assistance without the need for additional searches or explanations.