Financing college
Ideally, every college applicant would have a fully matured college fund in place to pay for necessary expenses when the time comes, but in reality, that seldom is the case. With the cost of college these days, parents generally need to start saving soon after the birth of their child, and put fairly significant amounts on deposit each month. There are several strategies to develop a strong college fund, but for the time being we are going to address the situation where no fund or an insufficient one exists.
One of the first steps, which should be undertaken during high school, is applying for any potentially available scholarships. Be sure to talk to the financial aid office at schools you are considering for available options. The next source to consider is federal student loans, like Staford or Perkins loans. Parent’s PLUS loans can also be pursued. The next option is private loans, which should include a cosigner if possible if the applicant is a student with no established credit, even if the loan can be approved without one. (Having a cosigner will probably reduce the associated interest rate.) As much of the expenses as possible should be filled from the first options mentioned above, and continue down the list until the need is met.
Another important factor is to keep college costs as low as possible. One way to do this is to attend a local or at least in-state school in order to avoid out-of-state tuition. By seeking a college near the parents’ or some other relative’s home that will allow the student to live there during the college years, a great deal of money can be saved on dorm costs or other room and board. Web resources are available to locate colleges in a certain area, such as schools in St. Louis.
Another way to save money is to purchase used textbooks. Most college bookstores deal in used books as well as new, and many colleges have a used bookstore nearby. It is also worth checking online sources of used books such as Half.com, Alibris, and even eBay.
If it is not possible for the student to live with parents or other family, consider housing that offers only what is needed, like a studio apartment, or perhaps sharing an older home or apartment with several other students. Kitchen facilities are important, however, as the cost of eating out will significantly increase costs. Transportation can be a financial factor as well, so make sure economical transportation is available, and consider the distance from the college.
If necessary, the student may need to consider working in order to finance part of their education, although care should be taken to assure that this will not damage the ability to pursue education effectively. Certain employment is especially well suited to students in that it may not require their full attention, such as some security and caretaking positions, allowing the student more opportunity to study.
A college education makes a big difference in earning potential for an individual, so it makes good financial sense to earn a degree. Even if you have to do without some non-necessities for a while, your earnings in the long run will repay you many times over.
Entry Filed under: General, Student Loan