We also pay costs out of income. This is more of a “mental” thing than actual additional savings but it helps me to feel more in control and know where we are… We have a separate money market (so it earns some interest) savings account that we deposit into every month. Then tuition is paid directly from that. If you start now, you could have next year’s tuition ready to go before classes even start!
I’m jealous of those of you who can pay by credit card without fees…I’d love to earn those points. Neither of my kids’ schools even offer credit card (with or without fees).