Handling Rising College Tuition CostsIf you have followed the theme of this website to this point it should not be a surprise for you to hear that we believe that the worst way to fund a college education is through loans. There is one school of thought out there that believes that a school loan should be considered a secured loan. They say that the education allows for higher earning potential, thus allowing the quick repayment of the school loans. The problem with this thought is the number of young people out there that have a difficult time finding a job even with a college degree, not to mention those that do not graduate. Now these people have a loan to repay and no income. I do not go for the secured loan theory. College costs vary considerably depending on what institution of higher learning you decide to attend and rising college tuition costs are everywhere. The following are some ideas on how you can keep college expenses to a minimum. Community Colleges Community colleges are cheaper and closer to home. Also, many pre-requisite courses can be taken before one is off to a bigger/more expensive school. One note is to make sure that all credits are transferable. It is my experience that the tuition at a community college is about one half of the tuition at a larger state university. State Colleges and Universities Community colleges are often limited on the degrees offered. This is where the state colleges are the better value. State colleges are less expensive than private colleges while offering a wide range of degree choices. Take a good look around; state colleges may not be a bargain if you come in from out of state. Living at Home Room and board can account for 50% or more of college expenses. You can save a lot of money by living at home and commuting. Sitting Out a Year or Two A young person can work and save money for education and at the same time better determine what area of study they will pursue. Sometimes I think it may be good for some to take a couple of years to sort things out. One thing that I do know was that when I was in school the older students were usually much more focused. Start Saving Early If the parents are going to pay for the education the best way is to start saving is as early as possible. For instance and Education Savings Account of $2,000 per year for 18 years at 8% grows to $74,900. Current Income Depending on what type of college is attended it is not impossible to pay for an education while going to school using the income from the parents and/or student. The students themselves can help cover the costs of college by working part time. Grants A grant is money from the federal or state governments or possibly the school. Work-study Programs Work-study is a federal program where the student works on campus for payment of school expenses. Corporate Benefit Many corporations have education re-imbursement programs for employees and some have scholarships for the children of employees. Military The Montgomery GI Bill and the Army College Fund can provide up to $70,000 to pay for college. Army Education Benefits
No-need Scholarships Scholarships are available based on ability or ethnic heritage. You should not count on this type of scholarship. Co-op Programs There are programs where students alternate semesters working and going to school. A student can help lessen the financial load even before they graduate from high school. Colleges are interested in both grades and extracurricular activities when handing out scholarships. Even though rising college tuition costs are widespread there are options that are in your hands for you to control the costs.
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