How many people actually put money away for college.?
Do people really do that or have they ever done that.? I really want to know how many parents pay cash for their childrens college.?
With all the grants and scholarships out there why do people still need to do this. Even with all the ways to get a no interest loan to pay for college.
I know kids when they have to pay cash for college when they can not get help but how many parents have really paid cash.?
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The competition for grants and scholarships is unreal. Our daughter got a 2 year total 3000.00 grant to her college applied towards tuition and one 250.00 scholarship at Senior awards night. This helped to pay for two books she needed for her freshman year. There are also tons of grants and scholarships available on the internet but the competition is stiff and be on your game as far as applying early.
If your children are highly motivated and excellent scholars they may do well when the scholarships are passed out in their senior year. Once they are in college there are also opportunities to apply for grants and scholarships in the area of study they choose.
If there are no interest loans out there where are they? Even your federal loans charge interest. You are just defered until you graduate. There are federal loans that parents can apply for but you start paying them back immediately. The interest rate may be lower depending on your credit score. Many students are turning to loans like Teri and others but in my daughter’s situation repayment begins the day you graduate and you cannot defer those loans if you decide to go back to school. On this type of loan they also need a co-signer in most cases so read the fine print carefully.
My husband and I have paid over 15000.00 and my daughter is over 16000.00 in debt with her federal and Teri loans. Her debt would have been much worse if she had not signed on to be a RA for 3 years of her college. She had free room and board during that time.
If we were young parents and had it to do over again we would have taken advantage of more saving opportunites.
If your income is around 20000.00 a year and you have more children at home then you may qualify for a Pell grant.
In high school there may be a 21st Century Scholars program your child can sign up for in the 8th grade. They have to maintain a high GPA, agree to be drug/ alcohol free and your combined family income isn’t over 35000.00 a year.
If your child has a baby and is unmarried she may qualify for a free ride in many situations. Child care is paid for as well as housing and living expenses.
My eyes were opened up when my daughter and I filled out our first FAFSA. Every penny is factored into their formula. There are ways to get around it. One family we know are very well off. 3 years before their 1st child entered college they put their farm ground in a brothers name and their child got a free ride as well as the rest of their children. Check around and talk will financial experts for these loopholes. I wish we had done something like this.
In any case whatever money you can put back is helpful. Even if your children choose another route after high school and don’t need what you have saved just think of the nest egg you will have!
Good luck!
If you need to save because you have a kid – definitely open a 529 and save something…everything is helpful.
