At the moment, summer is in full swing for many families and planning for autumn seems far away. However, for parents with college-bound children, a time for new beginnings, transition, and planning for the future is quickly approaching. This applies in particular to families who still decide how best to pay for the coming school year – and which sources of funding they will use.
A recent one College Ave student loan Parents with Students survey conducted in June by Barnes & Noble College InsightsSM, found 95% plan to pay for their child’s college education. The most common sources of finance? Grants and grants, income and savings, and student loans.
The truth is that most families need to explore every financial way to ensure that their child has the resources it needs to advance their college careers. If you have a child going to college this fall, here’s a summary of the seven most popular ways parents polled to help fund their child’s higher education:
1. Research all scholarships and grants
In the survey, 64% of parents who help their child pay for college said they currently or in some way want to use scholarships or scholarships – which do not have to be paid back. It’s not too late to look for last-minute scholarships, and not all of them require proven financial needs or a history of academic excellence. For example College Ave Student Loans gives away $ 1,000 every month as part of his scholarship competition. Make sure that you fully explore all options for “free” college money as part of your process.
2nd Set aside income and savings
Although the survey shows that 60% of parents plan to use income and savings to cover college expenses, they are far from alone if they could not save in these difficult financial times. The good news is that funding college can still be a priority, especially if your child is just starting out. You may have to make some difficult decisions, but you could see if it is possible to cut spending in your budget, sell unneeded assets, or ask relatives to shift gifts toward college funding. Any amount can help reduce tuition fees.
3rd Discover student loan options
More than half of the families surveyed (53%) rely on student loans to close a funding gap between universities. If your family may need to borrow, make sure you take out federal loans on behalf of the student first, as they are associated with low fixed interest rates and unique benefits such as income-related repayment plans. Federal student loans have annual credit limits, and if you need additional funds, private student loans are an option you should consider. Just make sure you’re looking for a loan that fits your budget, such as: B. The flexible repayment plans of College Ave student loan. Applying for help is easy with the three-minute application and excellent customer service.
4th Encourage your child to find work
43 percent of parents surveyed indicated that their children would work (or have already worked) during school to fund college. This is often a solid plan because it can motivate students to have a bigger share in the outcome of their education. For families who have completed the free application for state study grants (FAFSA), your student may have job offers for the federal degree.
5. Use your 529 savings plan
About every third family (38%) plans to: a 529 savings plan to help pay for college. If you have money in a 529 plan and you have upcoming higher education expenses, you can set up a distribution from your 529 plan account to your own bank account. Money must be used for eligible college related expenses, e.g. B. for lessons, accommodation and meals, books and accessories etc.
6. Consider a parent loan
Another option that you may not have considered is to take out a loan yourself. Parental credits are an option for those with strong credit who want and can take on the debt. When buying parent loans, consider private parent loans, as some – like the ones on College Ave – can save families as they can offer lower interest rates and no origination fees compared to federal options. Of parents who help a child pay for college, 21% of respondents have or plan to get parental loans.
7. Take on a sideline
Another way to make a financial contribution to your child’s education? A side business. Taking on a part-time job or a company that generates additional income is a strategy that is used by 18% of the parents surveyed. Depending on your time, energy, and other commitments, you may be able to take on additional work to earn the extra money needed to give your child the valuable education they need.
As autumn approaches, make sure your child has everything he needs to get his college education going. Take the time now to plan your best financial strategy so you can enjoy the last few weeks before sending your students to college. For more tips on planning and paying tuition, go to CollegeAve.com.
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