The rate at which children grow up, it seems impossible to save up for their college tuition. And even if you do, the rate at which college tuition increases on a yearly basis you couldn’t save up enough money.
When your child is born, you feel like his/her college studies are ages away and so you don’t even think about starting their tuition fund until the day you take them to their college orientation and realize that the tomorrow you thought was so far away is here. It is today. So today, if you are having trouble funding your child’s college, you ought to be thinking whether loans are the only way out.
As a parent you have to get through the multitude of expenses that the college life brings. While creating a college fund is a good idea, there are other ways which can assist in paying for college education. We have gone through some of the possibilities before but I’d like to address more ways of taking care of this financial target and to reduce student debt.
Ways to pay for college
Here are some Free Money Options to pay for your studies:
- FAFSA: Free Application for Federal Student Aid is the basis of any financial aid program. You are encouraged by every federal financial aid packages to fill out this form. The form assesses your financial condition and judges whether you are suited for based financial plans or not. It is a good idea to fill out the form to know exactly where you stand. It might just turn out to be helpful.
- Scholarships or grants. There are scholarships and grant programs provided by colleges which can be used. Scholarships and grants are the best way to get through college because you do not have to pay back the money, hence it reduces student debt. However, while pursuing scholarships, you need to watch-out for the scholarship scams.
- Federal Work-Study Program. This program allows you to fund your child’s college life along with an opportunity to spend time with him/her. This way you can kill two birds with one stone. Your child will go to college and get higher education while the bond between you two will get stronger.
- State scholarship programs. Often there are states that have a lottery scholarship for which your child can qualify on the basis of academic performance given you are a permanent resident of the state. In addition to this, you should also take a look at the sponsored aid packages of the college from its financial aid office.
A look at some Low Interest Options:
- PLUS loan. The word ‘loan’ may scare you off but the PLUS loan is less scary than your traditional personal loan. To reduce student debt this is a better option than a regular loan. The PLUS loan does include interest, origination fee and other such costs but since it is backed by the federal government its overall cost is much lower compared to other loans. In order to obtain the loan you will need to have decent credit, steady income and potentially a co-signer.
- Have your child (of majority age) apply for student loans. In order to reduce student debt, you can consider having your major child to apply for a Stafford Loan. Stafford Loans are easier to get because they do not require any credit or income requirements. They also have lower interest rates and you can start paying off the loan six months after graduation. This could be highly effective in reducing student debt.
Practical Tips to Reduce Student Debt
Go for community college and advanced honors courses.
If your child earns extra credit hours during his/her high school and then attends community college it could pay off. Majority of community colleges have articulation agreements with most prestigious universities so your child can first enroll in a community college, complete his/her 2 years of any academic program and then transfer to go good university.
Buy secondhand items
Buy second hand textbooks, clothing, furniture etc. This might not sound like a big saving but it is. Textbooks make up a huge portion of the total college expenses and getting them second hand will save you money. You can also sell them once you are using them. If you need things like furniture to set your child’s room, buy used items instead of getting new ones.
Travel in a bus
Having your own car is very convenient but not the cheapest way to move around. Having a bus pass will reduce your traveling costs to a great extent and it will help in reducing your student debt.
Attend college nearby
For obvious reasons, attending in-state colleges is cheaper and in-state applicants are also preferred by many universities.
Getting your child through college is tough but by taking a few measures you can reduce student debt to a great extent while also giving the best of education to your child.