How to Cover College Costs
Without Going Broke, Cashing in Your Retirement Savings or Co-Signing Loans
Let’s face it – college is expensive. And if you’re worried about funding your child’s college education, you’re not alone. You’re actually joining 70% of parents when asked about their biggest financial worry.1 Here are four tips on how to cover college costs:
- Plan Ahead – Start Saving Early
Start saving for college while your little one is still little and you likely won’t have to consider withdrawing from your own retirement fund when he or she is graduating from high school. For example, a family that starts saving $10 a week at birth at 4% interest will accumulate $12,663.44 by the time the child turns 17 and enrolls in college.2 Have a child already and haven’t started yet? Not to worry. Now is better than tomorrow.
- Look For and Apply For Scholarships, Grants
Encourage your child to apply for grants and scholarship funds to help keep tuition costs down – you won’t believe how much “free” money there is out there today for high school seniors applying for college! Check out all the free sources of information available about grants and scholarships.
- Encourage Your Child to Work Part-Time
Once scholarship and grant money is applied, and beyond what your savings doesn’t cover, encourage your child to get a part-time job to help offset education costs. Considering that only half of U.S. hiring managers feel that today’s new graduates are well prepared for the professional world, a part-time job can both build character and offset the need for student loans.3
- Encourage Your Child to Apply for Financial Aid
Beyond personal savings, scholarships and grants, and what expenses your child can cover on their own, applying for a student loan to cover other outstanding costs is an option. Borrowing money for college can be a smart idea if your child can get a low interest federal loan.
17SOC36-2
great article
Terrific advice.