Save Now for College
College can be extremely expensive and depending on where you go and what you study, expect to spend from $10,000 for a four year degree all the way up to over $100,000. For those with limited resources, college can be very expensive, however with some simple savings techniques; college can be very accessible – no matter what the price with affordable student loans.
529 College Account
Similar to an IRA or 401K plan, a 529 college account can help parents and even grandparents save for college- tax deferred. 529 college accounts are usually very easy to open and you can easily direct deposit savings into them each paycheck. Most states have 529 accounts and if your employer doesn’t offer one, you can usually open your own with the help of your bank or accountant.
State Grants
For college bound students make sure you do some research into the types of grants your school or state offers. Many times, you can save hundreds or even thousands of dollars just by simply applying for a special grant. It should be noted that unlike loans, grants are free money, which does not have to be repaid. In order to find out if there are state grants available, make sure to contact your school’s admissions or financial aid office.
Scholarships
Scholarships have grown immensely in the last couple of decades and while extremely academically successful students are usually prominent recipients of scholarships, no matter what your circumstances, you can find scholarships available for college. Sports scholarships are one area, creative and private scholarships are another area. There are huge databases online that you can search to find specific kinds of scholarships on almost any type of criteria. While some scholarship databases are fee based, others are free.
Student Loans
Obviously, one of the most popular methods of paying for a college education is with student loans. Student loans are either privately funded or government funded. While student loans accrue interest, they are in most cases excellent investments. One way to lessen the blow of the total cost of student loans is to pay off the interest while you attend school. This strategy can save you thousands of dollars off the total cost of your loan.
Payment Plans
If you are attending a state school or community college that is relatively affordable (less than $5,000 per year in tuition), you may want to opt for a payment plan instead of taking out loans. Some schools allow you to prepay tuition or pay out your tuition over the course of the semester. Since each school differs, it is best to contact the school of your choice for more information.
