Journal of Financial Planning: February 2025
Geoffrey VanderPal, Ph.D., D.B.A., CFP®, CLU, CTP, CSCP, SHRM-CP/SCP, PMP, is a financial expert focused on the areas of financial planning, investment management, insurance and risk, and corporate finance. While maintaining multiple professional certifications in finance and project management, he is a published author in over a dozen peer-reviewed journals and a book published in 2017, with Amazon, titled Invincible Investing and in 2023, The Steadfast Leader. Beyond teaching and academics, Dr. VanderPal is co-founder and co-owner of NeuroConsulting Group LLC, focusing on leadership and business consulting.
Higher education remains one of the largest financial commitments for families. With tuition costs soaring and traditional degree paths taking longer to complete, the challenge of balancing educational aspirations with financial security has never been greater. For financial advisers, this presents an opportunity to provide critical guidance that minimizes costs and maximizes return on investment.
This article explores innovative approaches, practical tools, and nontraditional options advisers can present to their clients. By considering the strategies outlined here, advisers can ensure their clients pursue higher education for themselves or their children in ways that align with the client’s long-term financial goals. There has been massive growth in enrollment at schools offering low tuition and options for flexibility, such as large credit transfer acceptance and competency-based education. For example, Western Governors University has about 170,000 students and Southern New Hampshire University has over 120,000 students. The traditional academic model is dying, and universities will need to adapt to the changing needs and demographics of society.
This article is an alternative to many other articles that simply focus on scholarships, study programs, Pell Grants, and 529 or Coverdell programs. Many of the methods mentioned here will shave one to three years off a traditional four-year bachelor’s degree program. The objective is to earn an accredited undergraduate degree or, in some cases, graduate degree in substantially less time and for substantially less expense. Many examples and specific schools are mentioned, but it is not an exhaustive list, and terms and requirements can change over time. It is important to contact individual educational institutions to verify the current requirements.
Balancing Costs and Career Outcomes: A Simple ROI Framework
When evaluating the value of a college degree, advisers can employ a straightforward formula to assess its financial viability:
Education Investment Ratio = Total Cost of Degree /(Annual Starting Salary × 5)
If the ratio is below 1, the degree provides a favorable return on investment (ROI) within five years. If the ratio exceeds 1, clients should explore more affordable or alternative pathways.
For example:
- A $60,000 degree in computer science with a $70,000 starting salary results in a ratio of 0.86—a strong ROI.
- A $120,000 degree in a field with a $40,000 starting salary has a ratio of 3—an indicator to reconsider.
This framework empowers clients to prioritize cost-effective degrees in high-earning fields, leveraging the options discussed below.
Accelerating Degree Completion with Credit-Earning Platforms
Online platforms like Sophia.org, Study.com, and StraighterLine.com, along with credit-by-exam programs such as College Level Exam Preparation (CLEP), DANTES Subject Standardized Tests (DSST), and Thomas Edison Credit-by-Examination Program (TECEP), allow students to earn college credits affordably and on their own schedule. Benefits include:
Cost Savings: Completing general education credits through these platforms often costs between $1,000 and $3,000—far less than traditional tuition.
Flexible Scheduling: Self-paced courses cater to working professionals and full-time students alike.
Transferability: Institutions like Arizona State University, Liberty University, and Southern New Hampshire University accept these credits.
Encourage clients to verify transfer agreements directly with university admissions offices. Programs like ASU Universal Learner Courses offer low-cost, transferrable credits and preview university-level coursework.
Leveraging Credit for Prior Learning (CPL)
For clients with professional or military experience, credit for prior learning (CPL) offers a way to convert existing knowledge into academic credits. Schools like Thomas Edison State University, University of Maryland Global Campus, Franklin University, and Excelsior University have strong CPL programs. LearningCounts.org and similar services guide students in compiling portfolios to showcase work experience, certifications, and training. CPL can significantly lower the number of courses needed for graduation, saving time and money.
Accelerated and Competency-Based Education (CBE)
Accelerated programs and competency-based education (CBE) prioritize skill mastery over traditional semester schedules. Accelerated programs at schools like Boston University’s Metropolitan College and Purdue Global offer intensive programs enabling faster degree completion.
CBE programs let students advance based on mastery of skills rather than time spent in a classroom. These programs are ideal for adult learners and professionals looking to minimize the cost and time of earning a degree. Generally, a student can complete as many courses as they are able to within the term for a flat fee.
Programs at schools like Western Governors University, Capella University’s FlexPath, University of Maine at Presque Isle, and South College allow students to progress as they demonstrate competency, offering flexible and cost-effective pathways.
University of Maine at Presque Isle
- Program: YourPace CBE model
- Benefits: Flat-rate tuition (~$1,400 per eight-week session). Students can complete multiple courses within a session, significantly reducing costs
- Popular programs: Business administration, accounting, and liberal studies
Capella University’s FlexPath
- Structure: Unlimited courses per term for a flat fee (~$2,500 per three-month term)
- Audience: Geared toward self-paced learners and professionals balancing work and education
- Fields: Healthcare, psychology, education, IT, and business
Western Governors University
- Structure: Unlimited courses per term for a flat fee (~$4,000–$4,750 per six-month term)
- Audience: Geared toward self-paced learners and professionals balancing work and education
- Fields: Healthcare, psychology, education, IT, and business
South College
- Structure: Unlimited courses per term for a flat fee (~$6,000 per six-month term).
- Audience: Geared toward self-paced learners and professionals balancing work and education
- Fields: Healthcare, psychology, education, IT, and business
International Education: Low-Cost or Free Degrees
Studying abroad can reduce both the time and cost of earning a degree. Many countries offer shorter bachelor’s degree programs or tuition-free options for foreign students.
For example, institutions like University College London (UCL) and Leiden University shorten undergraduate timelines. Overall, most British colleges and universities operate on a three-year bachelor’s degree model.
Tuition-Free Options for Foreign Students
- Austria: University of Vienna offers free tuition for EU/EEA students and minimal fees for international students (~$800 per year).
- Czech Republic: Charles University offers free education for students studying in Czech, with low-cost options for English programs (~$1,000 per year).
- Finland: Schools such as University of Helsinki offer affordable tuition in English-taught programs, and some programs are free for EU/EEA students.
- France: Institutions like Sorbonne University charge nominal tuition fees (~$200 per year) for both domestic and international students.
- Germany: Public universities such as Ludwig Maximilian University of Munich and Heidelberg University offer free tuition, requiring only nominal administrative fees (~$300 per year).
- Norway: Universities like University of Oslo provide free tuition for international students, though students must cover living expenses.
- Slovenia: Institutions like University of Ljubljana offer free tuition to many foreign students.
- Sweden: Universities such as Uppsala University provide low-cost tuition for international students, with some scholarships available to offset living expenses.
Resources like DAAD (German Academic Exchange Service), Study in Norway, and Campus France portals can guide clients through application processes and identify scholarships.
Exploring Online and Hybrid Degree Programs
Online programs provide flexibility and significant cost savings by eliminating expenses like room and board. Schools like Penn State World Campus, ASU Online, and University of Florida Online offer accredited programs.
Other affordable options include platforms such as Coursera and edX, which partner with universities to provide degrees like the University of Illinois iMBA and Georgia Tech’s Online Master’s in Computer Science. The Georgia Tech online program costs approximately $7,000 while the on-campus version is over $30,000. Additionally, the online version can be completed part-time, allowing professionals to continue working while pursuing their degree.
Community Colleges: Affordable Pathways to Four-Year Degrees
Starting at a community college remains one of the most effective strategies for reducing higher education costs. Guaranteed transfers may be available through partnerships with systems like California State University (CSU) and University of California (UC) to ensure seamless transitions to four-year institutions.
Flexible Credit Transfer Institutions
Advisers should recommend universities known for accepting a wide range of transfer credits, typically up to 90 credits or three-quarters of an undergraduate degree:
- Thomas Edison State University: Accepts up to 90 credits from alternative sources.
- University of Maryland Global Campus: Emphasizes military and professional credit acceptance.
- Excelsior University: Specializes in adult education with flexible credit policies.
- Western Governors University: CBE-focused programs evaluate prior learning for accelerated completion.
- Arizona State University: Partners with platforms like Study.com for seamless credit integration.
- Charter Oak State College: Known for accommodating transfer credits and prior learning experiences.
- Empire State College: Offers personalized degree paths with flexible credit transfers.
- University of Maine at Presque Isle: Known for its YourPace CBE program, designed for affordability and flexibility.
- South College: Provides competency-based pathways and online options for working professionals.
Institutions Accepting Over 100 Transfer Credits
Certain universities go above and beyond in accepting transfer credits, allowing students to complete their degrees even faster. Here are standout examples:
Western Governors University
Policy: Accepts over 100 transfer credits in some cases, especially for students with professional or military experience.
Advantages: With its CBE model, students can demonstrate mastery in subjects to accelerate degree completion
Cost: Tuition is a flat rate (~$4,000 per six-month term), making it highly affordable for self-motivated learners.
Excelsior University
Policy: Allows up to 113 transfer credits for certain bachelor’s degree programs
Advantages: Particularly accommodating for adult learners and those with prior professional experience or certifications
Programs: Strong offerings in technology, healthcare, and liberal arts fields.
Franklin University
Policy: Accepts up to 94 transfer credits and provides flexible online options.
Unique Programs: Its 3+1 Transfer Program allows students to complete three years at a partner institution before finishing their degree at Franklin.
Planning for Dual Enrollment and AP/IB Programs
High school students can reduce future college costs by earning credits early. Initiatives like Running Start in Washington and Move On When Ready in Georgia enable high school students to complete college-level coursework.
Many universities award credits for high Advanced Placement and International Baccalaureate exam scores, streamlining undergraduate requirements.
Strategic Financial Planning for Higher Education
Advisers can help families create a detailed financial plan tailored to educational goals:
529 Plans: Tax-advantaged accounts for education savings.
Work-Study Programs: Opportunities to offset tuition costs through part-time employment.
Financial Aid: Encourage clients to prioritize institutions with generous aid packages, such as Harvard and Stanford.
Promoting Alternative Credentials
For some careers, certifications or bootcamps may offer faster and more affordable entry:
Technology: Coding bootcamps like Flatiron School and General Assembly provide job-ready skills.
Healthcare: Accelerated medical assistant and phlebotomy training programs
Business: Certifications like the Project Management Professional (PMP) or Certified ScrumMaster (CSM) can boost earning potential without a degree.
Exploring Online Master’s Programs with High ROI
Graduate programs often come with a hefty price tag, but online options can reduce costs and provide flexibility. Many of the schools previously mentioned offer undergraduate and graduate level programs in various disciplines and subjects. Here is a short list of other accredited universities offering various low-cost accredited graduate degrees, all under $14,000 for the entire tuition expense.
Amberton University
Degrees Offered: Master of Business Administration (MBA), Master of Science in Human Relations and Business
Tuition: $265 per credit hour
Total Cost: Approximately $9,540 for a 36-credit hour program
Details: Focused on flexible online delivery for working adults
Fort Hays State University
Degrees Offered: Master of Business Administration (MBA), Master of Science in Education, and Master of Science in Nursing
Tuition: $298 per credit hour (in-state rate)
Total Cost: Approximately $10,728 for a 36-credit hour program
Details: Known for its affordability and wide range of online master’s programs
Wayne State College
Degrees Offered: Master of Science in Education, Master of Business Administration (MBA), Master of Organizational Management
Tuition: $380 per credit hour
Total Cost: Approximately $13,680 for a 36-credit hour program
Details: Provides in-state tuition benefits for online students in certain programs
University of the Cumberlands
Degrees Offered: Master of Arts in Education, Master of Science in Information Systems Security, Master of Science in Digital.
Tuition: $315 per credit hour
Total Cost: Approximately $11,340 for a 36-credit hour program
Details: Offers flexible online formats and is recognized for affordability in cybersecurity and education programs
Texas A&M University–Commerce
Degrees Offered: Master of Science in Educational Leadership, Master of Science in Applied Criminology
Tuition: $325 per credit hour
Total Cost: Approximately $11,700 for a 36-credit hour program
Details: Features online learning options with regional accreditation
University of Central Arkansas
Degrees Offered: Master of Arts in Teaching, Master of Science in Family and Consumer Sciences
Tuition: $325 per credit hour
Total Cost: Approximately $11,700 for a 36-credit hour program
Details: Offers online programs tailored for educators and social service professionals
Chadron State College
Degrees Offered: Master of Business Administration (MBA), Master of Science in Organizational Management.
Total Cost: Approximately $13,320 for a 36-credit hour program
Details: Known for its commitment to affordability and serving rural communities
New Mexico Highlands University
Degrees Offered: Master of Social Work (MSW), Master of Business Administration (MBA)
Tuition: $290 per credit hour (in-state rate)
Total Cost: Approximately $10,440 for a 36-credit hour program
Details: Offers competitive rates for both in-state and online students
Arkansas State University
Degrees Offered: Master of Public Administration (MPA), Master of Science in Media Management
Tuition: $300 per credit hour
Total Cost: Approximately $10,800 for a 36-credit hour program
Details: Affordable online master’s programs designed for career advancement
It is important to note graduate programs generally have less flexible or generous options for credit transfer or prior learning credit, though graduate programs also require much lower credit requirements than an undergraduate degree. In some cases, if a student has the time, dedication, and focus, a CBE-oriented graduate level degree can be completed within the six-month term for a flat cost of $4,500–$6,000, providing an even more cost-effective graduate degree.
Non-Profit versus For-Profit Educational Institutions
In recent years, the proliferation of for-profit versus non-profit educational institutions has gained more attention and scrutiny as there have been instances of universities and colleges being sued as well as complaints filed for false or misleading advertising or promises of employment after graduation and, in some cases, falsified data. However, many for-profit institutions provide a good education and are in line with industry standards.
The main drivers of education quality are accrediting bodies. Though they are not government entities, they are monitored by the U.S. Department of Education. There are two types of accreditations. The first is institutional accreditation, which refers to organizations that accredit and review the entire institution. The second type of accreditation is categorized as programmatic and focuses on specific areas of study. In most cases, it is best to attend a university or college that has both institutional and programmatic accreditation. At a minimum, make sure the college or university attended has a U.S. Department of Education-recognized institutional accreditation in good standing. You can review accreditations and accreditation organizations at the Department of Education’s website: https://ope.ed.gov/dapip.
Conclusion
By presenting clients with innovative pathways to higher education, financial advisers can align educational aspirations with fiscal responsibility. Tailored strategies, from leveraging alternative credit sources to exploring international programs, ensure families achieve their goals while preserving long-term financial health.
Sidebar
Case Study: Completing an Entire Degree for Under $10,000
With careful planning, a student or adult learner can earn a fully accredited undergraduate degree for less than $10,000. Here’s how:
1. Start with Alternative Credit Platforms
Enroll in courses via Sophia.org, Study.com, and StraighterLine.com to complete general education and prerequisite courses. Costs average $1,000–$2,000 for up to 60 transferable credits.
Use credit-by-exam programs like CLEP, DSST, and TECEP to cover additional requirements. Exam fees are approximately $100 per subject, with many subjects translating to three credits each. Typically, a student takes a 100-question multiple choice exam and, after earning a 70 percent or higher grade, receives transferable credit for that subject or course.
2. Transfer Credits to a Flexible Institution
- Thomas Edison State University (TESU): Accepts up to 90 transfer credits. Students can complete the remaining 30 credits via TESU’s affordable online courses, costing around $4,500.
- Excelsior University: Similar policies to TESU, with an emphasis on adult learners and flexibility in accepting prior learning credits.
- University of Maryland Global Campus (UMGC): Provides affordable tuition for remaining credits and a generous acceptance of alternative credit sources.
- University of Maine at Presque Isle (UMPI): Offers a highly flexible competency-based education (CBE) program called YourPace, allowing students to complete degrees at their own speed, often reducing costs below $10,000.
3. Utilize Credit for Prior Learning (CPL)
For students with work experience or certifications, CPL evaluations can reduce the number of courses needed. TESU, Excelsior, and UMPI charge nominal fees for CPL evaluations, potentially saving thousands of dollars.
4. Look for Competency-Based Education (CBE) Programs
- Western Governors University (WGU): Offers flat-rate tuition per six-month term (~$4,000). Motivated students can complete an entire degree in under two years, further reducing costs.
- Capella University FlexPath: Allows students to pay a flat fee and complete unlimited courses within a term, ideal for fast-paced learners.
- South College: Provides flexible online and CBE options for various degree programs, catering to adult learners and working professionals.
5. Flexible Institutions with Generous Transfer Policies
- Excelsior University: Accepts up to 113 transfer credits for certain bachelor’s degree programs, significantly reducing time and cost.
- WGU: Accepts over 100 transfer credits in some cases, particularly for students with extensive professional or military experience.
Example Pathway
- Phase 1: Complete 60 to 90 transfer credits using Sophia.org, CLEP, and Study.com (~$2,000).
- Phase 2: Transfer credits to TESU, UMPI, or Excelsior and complete the remaining 30 credits online (~$4,500).
- Phase 3: Incorporate CPL or CBE to further reduce required coursework (~$1,000 in fees).
- Total Cost: Less than $10,000 for an accredited