These 5 options may help finance a college education.
The price tag on a college education keeps escalating, leaving parents and students wondering how to pay for a college degree. Finding ways to save money for college is a challenge for many people. If you or your child is considering attending college now or in the future, the following plans will help steer you in the right direction.
- A tax advantage 529 account:
A 529 is typically opened for a younger child, allowing money to accrue over time. However, it is still a good option even if your child is a little older.
Financial aid counselors advise parents to begin saving for college as soon as possible. Even a little amount each month can make a big difference. There are tax advantages with a 529 savings account, making it one of the best options to save for college. Most people are not aware that the 529 plan is an option to save money for college expenses. The 529 plan is not utilized as it should be simply because people are not aware of the plan and its benefit.
- Apply for Federal Student Aid (FAFSA):
The FAFSA is a free application for federal student aid. It is used to determine if a student is granted financial aid for college. When it is filled out, it allows access to federal aid such as student loans and the Pell Grant.
There are large amounts of money left each year designated for federal grant money that could have helped families pay for college.
- Consider federal loan options:
If you have a financial need, look into federal loans first. They offer more flexibility in repayment options when compared to private loans.
However, there are times when a private student loan may have a lower interest rate than a federal loan. It depends a lot on a person’s credit history, so it pays to thoroughly check out your options before selecting a lender.
- Ask the college about help with financing:
There are times when the college may increase financial aid for certain circumstances or allow for aid based on student merit. It pays to have a financial conversation when applying to college. Special accommodations are sometimes made to ensure enrollment. It never hurts to ask.
- Learn about scholarships:
Experts recommend applying for awards before entering college but students can also apply when they’re already in college.
Applying for scholarships takes a lot of time but it will pay off immeasurably if a scholarship is granted. After completing the FAFSA and looking into aid within the college, then check out the internet for scholarships and start applying for any and everything. Applying for scholarships should be viewed as a part time job. Find the time and dedication to apply.
There are many different opportunities to earn scholarship money. Some schools offer their own presidential scholarship. Opportunities are out there, students just need to do a search.
