In today’s tough economy, many parents are struggling to come up with college tuition for their children. Understanding the options available is the key to cutting expenses. Some ways to help pay for college, or at least reduce the amount of debt, are:
• Federal Loans - Federal loan options should be fully-exhausted before turning to private loans. Federal loans tend to be more consumer-friendly allowing for fixed-rates, income-based repayment or consolidation of loans.
• Loan Forgiveness Programs - Public Service Loan Forgiveness Program allows for forgiveness of certain federal loans if, after graduation, students work full-time at public service jobs.
• Scholarships - Research scholarships. Search online, at public libraries, high school guidance counselors’ office, and college financial aid offices. Government organizations, as well as private foundations offer scholarships. Check them out to see if you meet their specific requirements.
• College Financial Aid Packages - Compare financial aid packages offered by colleges. Colleges often give grants and allow for students to work part-time during the school year through the work-study program to help pay for college.
• Teach College-Bound Kids - While most parents try to prepare their children for the academic and social pressures of college, clueing them in on financial realities will help students manage money, budget and spend wisely.
• Start at a 2-year College - Start at a community college and transfer to a four-year college. Generally, community colleges offer courses at a lower cost than four-year colleges and universities. Starting at a two-year college and transferring later is a way to control costs, especially if grad school is in the future.
The tuition fee for colleges these days are quite daunting. However, cost should not be a deterrent to pursuing higher education. Smart borrowing, scholarships and grants, work-study programs are just a few helpful ways in which parents can pay for college.