by Matt Davida
Sending a child off to college is an exciting and nerve-wracking time for any parent. Making sure that they're prepared to be on their own for what may be the first time in their lives requires a lot of work. It can also require a lot of money. Between tuition, room & board, fees, and books, the cost of going to college can be quite high. As a parent, you want your child to be set up for success from their very first day. Here are five ways that you can help your child start college on the right financial foot.
1) Student Loans
Tuition rates just keep going up. Even if you have a college fund set aside for your child, it may not be enough. Student loans are one option for helping cover college costs. There are a lot of different types of loans out there. Your child can apply for loans themselves as soon as they turn 18. You can also apply for personal or parent+ loans to help contribute to their tuition. Be sure to read the repayment terms of any loan carefully before signing.
2) Grants
Unlike student loans, grants are financial gifts that don't have to be paid back after graduation. But just like loans, they come in many different amounts and types. Some are based on skills or qualifications that your child may possess. Others are designed to help students from disadvantaged groups attend college or to increase diversity in emerging fields of study. Grants do typically come with more requirements than scholarships, such as maintaining a certain number of credit hours or a certain GPA, so make sure you and your child can agree to those terms before accepting.
3) Scholarship Search
A third option for paying for college is through the use of scholarships. There are thousands available out there. Your child's school may offer some as part of their financial aid or application process. There are also websites dedicated to listing out scholarships by how much they award and what qualifications they have. Scholarships don't stop after freshman year either. There are many that your child can apply for at any point in their collegiate career.
4) Tuition Reimbursement Through Employment
Some jobs offer tuition assistance to their employees, even when working part-time. Benefits can even start while your child is still in high school. Most places will require a certain length of employment or a commitment to remain employed for a length of time after graduation. Be sure to ask for all the details upfront. If your child's schedule allows for a part-time job, picking one that offers tuition assistance or reimbursement will not only give them some extra cash while in school, it can make a large dent in their school costs.
5) Set up a 529 Fund
If you are in the US, a 529 fund is a specialized interest-bearing bank account for managing educational expenses. You can set one up at nearly any bank as soon as your child is born. Deposits can be made manually, or you can set up automatic recurring deposits to help you save. Friends and family members can also contribute to the account at any time. If they don't live close to you or a branch of your bank, most 529s allow for online deposits. You can use the money in the account for any level of education for your child, but many choose to save it all for college.
Starting early can let you take advantage of compound interest for an even bigger benefit when it's time for college.
There's no doubt that college comes with huge expenses. Scholarships and grants can help defray those costs. So can looking into jobs that offer tuition reimbursement. 529 funds will allow you to save for any education expenses, as well as allow friends and family members to contribute. Finally, looking into the variety of student loan options can help you and your child make the best decision to set them up for success.
1) Student Loans
Tuition rates just keep going up. Even if you have a college fund set aside for your child, it may not be enough. Student loans are one option for helping cover college costs. There are a lot of different types of loans out there. Your child can apply for loans themselves as soon as they turn 18. You can also apply for personal or parent+ loans to help contribute to their tuition. Be sure to read the repayment terms of any loan carefully before signing.
2) Grants
Unlike student loans, grants are financial gifts that don't have to be paid back after graduation. But just like loans, they come in many different amounts and types. Some are based on skills or qualifications that your child may possess. Others are designed to help students from disadvantaged groups attend college or to increase diversity in emerging fields of study. Grants do typically come with more requirements than scholarships, such as maintaining a certain number of credit hours or a certain GPA, so make sure you and your child can agree to those terms before accepting.
3) Scholarship Search
A third option for paying for college is through the use of scholarships. There are thousands available out there. Your child's school may offer some as part of their financial aid or application process. There are also websites dedicated to listing out scholarships by how much they award and what qualifications they have. Scholarships don't stop after freshman year either. There are many that your child can apply for at any point in their collegiate career.
4) Tuition Reimbursement Through Employment
Some jobs offer tuition assistance to their employees, even when working part-time. Benefits can even start while your child is still in high school. Most places will require a certain length of employment or a commitment to remain employed for a length of time after graduation. Be sure to ask for all the details upfront. If your child's schedule allows for a part-time job, picking one that offers tuition assistance or reimbursement will not only give them some extra cash while in school, it can make a large dent in their school costs.
5) Set up a 529 Fund
If you are in the US, a 529 fund is a specialized interest-bearing bank account for managing educational expenses. You can set one up at nearly any bank as soon as your child is born. Deposits can be made manually, or you can set up automatic recurring deposits to help you save. Friends and family members can also contribute to the account at any time. If they don't live close to you or a branch of your bank, most 529s allow for online deposits. You can use the money in the account for any level of education for your child, but many choose to save it all for college.
Starting early can let you take advantage of compound interest for an even bigger benefit when it's time for college.
There's no doubt that college comes with huge expenses. Scholarships and grants can help defray those costs. So can looking into jobs that offer tuition reimbursement. 529 funds will allow you to save for any education expenses, as well as allow friends and family members to contribute. Finally, looking into the variety of student loan options can help you and your child make the best decision to set them up for success.
