5 Ways To Fund Your Childs College Education

5 Ways To Fund Your Childs College Education

Did you know that the cost of​ a​ 4 year degree program is​ around $20,000 dollars per year.

The cost of​ a​ college education is​ probably the most expensive item in​ bringing up children today. When you take into account tuition fees, exam fees, living expenses, accommodation, books and computers it's not surprising that the average cost of​ college education is​ over $20,000 per year and that's before the social side of​ college life.

Today we live in​ a​ world where only the best educated and most prepared can succeed. The Job market is​ probably the most crucial and competitive element of​ our society and having a​ college education and degree goes a​ long way towards succeeding in​ it.

When our children are ready to​ enter the world of​ work it​ will be even more difficult and a​ college education will be essential to​ succeed. Here are 5 ways to​ fund your child's college education.

1. The usual method of​ parental funding of​ college education is​ out of​ current income, that is​ out of​ your weekly or​ monthly salary.

Whilst this is​ the most common method of​ funding college education it​ is​ one that only the very rich or​ highly paid can afford to​ do with ease. Even if​ there are 2 salaries most families find it​ difficult and will require sacrifices, even more so if​ you have more than 1 child. at​ best most parents can only afford to​ contribute part of​ the costs of​ college education out of​ current income. Additional sources of​ income will be required.

2. Your child can work his or​ her way through college.

Many students have to​ work whilst studying but many find the experience of​ juggling a​ job, lectures and a​ social life very difficult. Often the result is​ that students drop out of​ college education, fail their exams or​ don't do as​ well as​ they could.

3. Your child may have the opportunity to​ take out student loans to​ fund their college education.

Today the vast majority of​ students are forced to​ take out student loans to​ fund all or​ part of​ their college education. Usually to​ subsidize parental contributions, student loans are the most common way of​ students funding their own college education. Many students however, leave college with substantial debt and even with interest rates at​ historically low levels today's students can expect to​ have to​ pay substantial monthly repayments for many years.

4. Your child may obtain a​ scholarship or​ be entitled to​ grants from either federal or​ local funds towards the cost of​ their college education.

There are many sources of​ student scholarships or​ grants and with a​ bit of​ research most students today can find some grant funding. These sources however cannot be guaranteed for the future. Whilst scholarships and grants do not have to​ be repaid and as​ such are preferable to​ loans they are not guaranteed or​ predictable and therefore relying on them for our children is​ a​ risk.

5. Take out an​ education savings plan to​ fund college education.

An education savings plan is​ a​ regular saving plan into which you and your children can contribute. The plans are administered by colleges or​ state authorities and can be taken out for any child including a​ newborn babies. Because of​ the effects of​ long term compound interest the earlier you take out your plan the easier it​ will be and the lower your contributions will be. Because the funds are built up prior to​ going to​ college students do not have to​ rely on scholarships, grants or​ loans and they can concentrate on their studies.

There are a​ number of​ options to​ fund your child's college education but the only way funds can be guaranteed is​ by you taking out an​ education savings plan. With the education savings plan you decide what you can invest and your child can also contribute to​ his or​ her college education. With luck scholarships and grants will still be available as​ will loans to​ top up if​ necessary. if​ your child does not go to​ college the fund can be cashed in.

Taking out an​ education savings plan early will give your child the real opportunity of​ a​ college education and the best prospects for a​ job when they leave college.

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