Did you know that the cost of a 4 year degree program is about $20,000 dollars per year.
The price of a university education is probably the most expensive thing in bringing up children now. When you take into account tuition fees, examination fees, living costs, lodging, computers and books it’s not surprising that the average cost of college education is more than $20,000 per year and that’s before the social side of college life.
Nowadays we live in a world where the best educated and most prepared can triumph. The work market is probably the most crucial and aggressive part of the society and with a college education and degree goes a long way towards achievement inside.
When our children are prepared to join the world of work it will be even more difficult and a school education will be essential to succeed. Here are 5 ways to fund your child’s college education.
1. The typical technique of parental funding of school education is from current income, which is out of your weekly or monthly salary.
Whilst that is the most common method of funding college education it is one that just the very wealthy or paid can manage to perform with ease. At best most parents can only afford to donate part of the expenses of college education from current income. Additional sources of revenue will be required.
2. Your child can work his or her way through college.
Often the outcome is that pupils drop out of school education, neglect their examinations or do not do as well as they could.
3. Your child may have the chance to take out student loans to fund their college education.
Today the great majority of students are forced to take out student loans to fund all or part of their college education. Normally to subsidize parental contributions, student loans are the most common method of pupils funding their own school education. Many students however, leave college with significant debt and in spite of interest rates at historically low levels today’s pupils can expect to have to pay substantial monthly repayments for many decades.
4. Your son or daughter may get a scholarship or qualify for grants from federal or local funds towards the cost of their college education.
There are lots of sources of student scholarships or grants and with a little bit of research most students today can find some grant financing. These sources however can’t be ensured for the long run. Whilst grants and scholarships do not have to be repaid and as such are more preferable to loans they’re not guaranteed or predictable and therefore relying upon them for our kids is a risk.
5. Take an education savings plan to finance college education.
An education savings program is a normal saving strategy to which you and your kids can contribute. The plans are administered by colleges or state authorities and could be taken out for any child including a newborn babies. Due to the effects of long-term compound interest the sooner you extract your plan the easier it will be and the lower your contributions will be. Since the funds are constructed prior to visiting college students do not need to rely on scholarships, grants or loans and they can concentrate on their studies.
There are a number of alternatives to finance your child’s college education but the one way money can be guaranteed is by you carrying out an education savings program. With the education savings plan you decide what you can invest and your child may also contribute to her or his college education. With luck scholarships and grants will continue to be accessible as will loans to top up if needed. If your kid doesn’t go to college the fund can be cashed in.
Taking an education savings program early will give your child the true chance of a university education and the best prospects to get a job when they leave school.