Skyrocketing tuition fees and other college costs have got parents across the country concerned about how they are going to raise or save enough to pay for their child’s college education. It’s tough, there’s no arguing about that but there are a few things you can do to make it easier to handle these increasing costs.
Invest In 529 Savings Plans
You have two options under the 529 savings plans:
- The pre-paid tuition plans allow investors to purchase future college tuition credits at current costs. When your child is ready for college, you do not have to pay the increased costs.
- The college savings plans also allow you to invest your money towards future college costs. The difference is that your investment can grow, stagnate or decrease just like any other investment.
Tap Financial Aid
When looking for college money, it is advisable to explore all sources of financial aid. Start with the free resources—scholarships and grants—then federal student loans, and lastly private student loans. There is a price to pay for each type of financial aid but it’s nothing compared to what you are getting in return.
Consider Work-Study Programs
Encourage your child to consider a work-study program, provided that they can handle it without compromising on their academics. Work-study programs are federally funded. Students are paid to work on the campus itself. The cumulative income over a period of 3 years can make a significant difference to their overall debt.
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