Is it possible to send kids to college without changing your lifestyle? Many parents ask themselves that question every year when school begins, and they realize that college is just around the corner for their youngsters. Fear not. There are plenty of practical things you can do right now to deal with the cost of higher education for your college-bound kids without altering the way you live, work, and play. For the vast majority of working parents, the simplest first step in saving for a child’s college is to set up a designated college fund and add to it every payday.
Don’t expect these accounts to cover the full cost of tuition and fees, though, because the price of a four-year degree is rising faster than inflation. In addition to traditional self-funded bank accounts, consider applying for loans when the time comes to fill out school applications, look into grants and scholarships, check work-study programs, and make sure your children realize that famous-name schools don’t necessarily represent the best value in education. Here are specifics about tactics you can use to soften the financial impact of higher education.
Use College Funds, Not Savings
Set up a college savings account at your local bank and fund it as often as possible. Some parents choose to use automation to reach this goal and designate a percentage of their income, say two percent, as a direct deposit from their regular paychecks. Others make lump-sum deposits from work bonuses, gifts from grandparents, and tax refunds.
Apply for Private Parent Loans
The most effective way to assist your kids with educational expenses is to apply for a Private Parent Loan. That way, they won’t face the prospect of owing on college loans as soon as they graduate. With Private Parent Loans, parents, not their children, are the borrowers. There are multiple advantages to this approach, primarily the fact that parents can get low rates on whatever amount they borrow. Plus, repayment terms and other conditions are flexible and competitive, and borrowers can apply for all or just a portion of educational expenses to help kids with the financial obligations of college.
Hire a Professional Grant Scholarship Agent
Work with a professional agency to uncover scholarships and grants. Be careful not to pay large upfront fees to unknown organizations. Instead, work with reputable companies that have a long history of matching college applicants with appropriate scholarships and grants. This is an especially fruitful technique if your child is planning to major in one of the STEM subjects, namely technology, engineering, math, or science. Even many of the world’s top educational institutions offer financial incentives for excellent students who have in interest in STEM programs.
Investigate Work-Study Programs, Scholarship, and Grants
For a small fee, parents can hire professional grant and scholarship hunters who know how to uncover all kinds of financial resources that you’d never find on your own. Work only with a person or agency after you thoroughly check out their credentials. On your own, contact all the schools on your shortlist and ask about work-study programs. Many colleges have them. Most are set up to let students work 20 or fewer hours per week at an on-campus job and they can really pay off by helping to offset the cost of tuition, room, board, and related educational fees.