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College might seem a long way off, but the earlier you start saving for your child’s education, the better off you guys will be when the time comes for your child to go to college. Everyone knows that college is expensive. In fact, the least expensive schools come with numerous fees such as textbooks, tuition, room and board, and much more. So what can you do as a new parent? Along with maybe qualifying for scholarships and grants, you have a variety of different college savings options to help you. The college saving tricks are listed below.
Open a savings account for your child’s education
The best way to save for your child’s education is by opening a savings account as soon as possible. The earlier you start saving for your child’s education, the more money you will have when the big day finally comes. There are number of tax privileged accounts available to help you save including 529 plans, Roth IRA, or other options, if you’re considering opening a savings account.
Treating the savings account as a bill can help you save up some money in a consistent way. If you set up an automatic payment for your savings account you won’t even have to think twice about the funds your saving up.
Understand how financial aid works
In high school students take the Preliminary SAT/National Merit Scholarship Qualifying Test, also called the PSAT. If your child scores a high score on this test, in their sophomore and junior year, he or she may receive a merit scholarship. So, encourage your child to study and take this test serious! For PSAT study guides, go to College Board.
Are you worried about how you can afford your child’s education? A great way to afford college is by applying for scholarships. Students can apply for scholarships even before they’re seniors in high school. Get a step ahead by apply as soon as possible. For scholarships options, visit Scholarship and FastWeb.
During senior year of high school, your children will be introduced to the Free Application for Federal Student Aid (FAFSA®). What is FAFSA®? Students must complete their FAFSA in order to be eligible for federal student aid. If your child is eligible for federal student aid, he or she might receive federal grants and/or loans to help pay for their college. However, not all families receive financial aid. A student’s eligibility is determined by a formula used by the government, that takes into account the cost of college and the Expected Family Contribution (EFC).
Your child’s financial aid package is not enough? Then consider applying for more scholarships and/or private loans.
Know how much your child’s college cost
According to College Board, this is the average cost of attendance for the different types of college. It’s important to note, that student also pay other fees related to transportation and student activities.
|Types of College
(Tuition and Fees)
|Public Two-Year In-State College
|Public Four-Year College
|Public Four-Year College
|Private Four-Year College
Did you love your college experience? Maybe you should consider talking to your child about it. Maybe he or she would want to attend the same college you attended. Though, the cost of college increases each year, and your alma mater might be more expensive than what it was back in the days, you should consider your alma mater as a college option. Think about it this way, you will be able to give your child some help tips about campus life and ways they can have a success college career. Don’t forget that this can also be a great way to bond with your child!
How would my student loan debt impact my child’s education?
Your child’s education is important but so are other expenses in your life. If you have student loans of your own, make sure you pay them on time. Don’t pour all your money into your child’s education if you have student loans and other expenses to pay. Your financial stability is also very important. So, figure out a way to balance both. You don’t have to choose one over the other. Just make sure you’re paying all your bills before dedicating your whole income into your child’s education. Also keep in mind that there are other options for funding your child’s education which include federal student aid, scholarships, and loans.
If you’re considering taking out private loans to help pay for your child’s education, then it’s important you know that these loans require a credit check. Therefore, make sure your keeping track of your bills and paying them on time. Eventually, the loans you took out for your child’s education will have a lower interest rate if you have and maintain a good credit history.
With the cost of college increasing each year in the United States, it’s reasonable for parents to worry about their child’s education. Nonetheless, there are many ways a student can get a good education without getting in debt or wiping out their parent’s savings.