The cost of college continues to climb and families across the Ouachita and River Valley regions often find themselves asking the same question: how to pay for college without creating financial havoc? Between tuition, housing, textbooks, and other fees, higher education can feel financially increasingly out of reach for many. But here is the good news: families in Arkansas have options.
By planning early, exploring every opportunity for free money, and tapping into smart financing strategies, you can build a plan that helps cover college costs without sacrificing financial stability. In this guide, we will walk through proven ways to pay for college, from savings plans to scholarships to financial aid and local support from Union Bank.
Whether your child is in middle school or about to head off to their first semester, it is never too early or too late to create a strategy that works.
Start with a Savings Strategy (529 College Savings Plans, High-Yield Savings Accounts)
One of the most powerful tools families can use to prepare for college expenses is a savings plan, and college savings Arkansas options like 529 plans or high-yield savings accounts can help families build funds over time. Starting early allows savings to grow steadily over time, giving families more flexibility and peace of mind.
529 College Savings Plans are tax-advantaged accounts specifically designed to help families save for higher education. These accounts allow your money to grow tax-free, and withdrawals are also tax-free when using for qualified education expenses like tuition, books, or room and board. Some 529 plans even allow funds to be used for trade schools or apprenticeships.
High-Yield Savings Accounts are another great option for shorter-term goals or supplemental savings. These accounts typically offer higher interest rates than standard savings accounts and can be opened in your child’s name or held jointly.
Union Bank offers a variety of savings solutions that can help families build college funds over time. Visit our Savings and Investments page to learn more.
Families can start small and still make a big impact. Even saving $25 or $50 a month can grow significantly when done consistently over 10 to 15 years.
Explore Free Money First (Arkansas state grants, federal grants, local or school-specific grants, scholarships).
Before turning to loans, families should always look for money that does not need to be repaid. Grants and scholarships can significantly reduce out-of-pocket costs for college and often the results are worth the effort.
Grants
- The Arkansas Academic Challenge Scholarship, funded by the state lottery, is available to high school graduates and nontraditional students who meet basic academic requirements.
- The GO! Grant helps low-income students with financial need.
- Federal Pell Grants are based on financial need and are available to undergraduate students through the Free Application for Federal Student Aid also known as FAFSA.
Scholarships
There are literally thousands of scholarships for Arkansas students, including merit-based, need-based, and special interest awards. Some are offered by schools, others by local businesses, nonprofits, or civic organizations.
- Use online tools like FastWeb or Scholarships.com to search locally and nationally.
- Check with school counselors, local chambers of commerce, or your employer for regional opportunities.
- Many local churches, rotary clubs, and youth programs offer scholarships for area students.
Tapping into community resources can unlock hidden opportunities. Every dollar in scholarships or grants is one less dollar you’ll need to borrow.
Work-Study and On-Campus Jobs
Working part-time while attending college can help students gain valuable experience while contributing to education costs. Many colleges participate in the Federal Work-Study Program, which provides part-time jobs for students with financial need.
These positions are often on campus and flexible around class schedules. Students might work in the library, assist in an academic department, or support student services.
Even if your student does not qualify for federal work-study, on-campus jobs such as residence hall assistants, tutors, or food service staff can offer steady income.
Families should encourage students to ask about job options during campus visits or orientation. Working 10 to 15 hours a week can help cover textbooks, transportation, and personal expenses.
Understand Your Loan Options (federal, private)
For many families, loans are part of the college financing equation. Understanding your loan options can help you make informed decisions that support your long-term financial health.
Federal Student Loans are often the best place to start.
- Subsidized loans do not accrue interest while the student is in school.
- Unsubsidized loans begin accruing interest immediately but still offer fixed rates and flexible repayment terms.
- Both are accessed by completing the above mentioned FAFSA.
Private Student Loans may be an option if federal aid does not fully cover your needs.
These loans come from banks or credit unions and may offer variable rates. Families should compare terms carefully and borrow only what is necessary.
While searching online for “student loans Arkansas” may be tempting, not all loan options are created equal. Union Bank is here to help fill funding gaps with personal loan solutions tailored to your family’s specific needs, offering guidance and support every step of the way.
A key tip for families across the River Valley is to be cautious about overborrowing. Estimate your total cost of attendance and subtract all grants, scholarships, and savings before turning to loans.
Community Colleges & Transfer Pathways
Starting at a community college and transferring to a four-year university can dramatically lower the total cost of a degree. Tuition at community colleges is often half the cost of a university, and many students can live at home to save on housing.
In Arkansas, many community colleges have transfer agreements with public universities, ensuring that completed coursework counts toward a bachelor’s degree.
This option is especially useful for students in smaller towns who may want to ease into college life while staying close to home.
Community colleges also offer two-year programs in high-demand trades and technical fields, providing students with marketable skills and employment opportunities without the four-year price tag.
Financial Planning Tips from Union Bank
A college financing plan should include more than just tuition. Students and families must consider the total cost of attendance, including:
- Room and board
- Textbooks and supplies
- Meal plans
- Transportation and parking
- Miscellaneous fees
Create a College Budget
Start with the expected costs, then factor in financial aid, work income, and personal contributions. A budget will help students avoid overspending and track how their money is used throughout the semester.
To learn more, visit our Savings and Investments page or speak with a Union Bank advisor in your community.
Final Thoughts: Take the Next Step Toward College Readiness
Paying for college does not have to feel overwhelming. Ouachita and River Valley families college cost challenges can be managed with the right mix of planning and resources, from scholarships for Arkansas students to savings strategies.
Whether your student dreams of becoming a Red Wolf at Arkansas State, a Razorback at the University of Arkansas, a Boll Weevil at the University of Arkansas at Monticello, or even a Mulerider at Southern Arkansas University, one thing is certain: college comes with a cost. But with the right plan, your family can make it manageable and set your student up for success, both on campus and beyond.
The key is to start early, stay organized, and explore every available option. Whether your child is applying for their first scholarship or you are just beginning to build a college savings fund, Union Bank is here to help.
Visit your local Union Bank branch or speak with a financial advisor to create a plan that helps your family prepare for college costs, without the stress.