5 Tips for College Financial Planning
A recent survey from Sallie Mae showed eight in ten college-bound juniors and seniors (81%) view higher education as a path to better opportunities, yet fewer than half (42%) of families were unsure about how to fund their student’s education.
One of the aspects of the 4S Education Foundation’s mentorship program has been to help students and their families understand various college funding options to develop a college plan that meets the family’s needs.
If you’re a student with plans to go to college, it’s important to start carefully preparing with your family how to pay for it.
Below are 5 useful tips for College Financial Planning:
Save smart. Look into 529 college savings plans and Coverdell Education Savings Accounts (ESA). These are special savings accounts that help you earn interest on the money you put in, but it also doesn’t tax the money you contribute to the accounts as well as the interest, which means you’ll have more funds saved for college.
Understand College Costs. It’s a good idea to get a clear understanding of what to expect when paying for college, so we’d recommend listing down college costs. College costs could include: tuition and fees, room and board, books and supplies, transportation and other personal expenses.
Keep Costs Down. Consider other options to keep college costs low. For example, living at home, attending a community college for the first two years, studying at an online college as an in-state student, or getting a part-time job, are all alternatives you could examine to minimize college costs. College and career schools also offer special discounts, so make sure to ask the school for details.
Research Financial Aid. Get as much information as you can on FAFSA, financial aid guidelines, and various types of financial aid, such as federal vs. state grants.
Apply for Scholarships. When applying for scholarships, consider the student’s hobbies and interests. There are scholarships for everyone - artists, gamers, pet lovers, athletes, straight-A students - the list goes on. Find a scholarship that best fits you using search engines, like Scholarship Search. Schools also have their own specialized scholarships, so refer to your program for more information.
Here’s a fun scholarship idea: Doodle for Google Scholarship.
Need more advice? We’re here to help! Apply to the 4S Education Foundation Program to get personalized guidance through college applications, essay writing, college selection, financial aid options, and so much more!
contributed by:
