The costs of college can be shocking. CollegeBoard.org can give you an idea. You will want to consider total costs, including tuition, room and board, books and supplies, personal expenses, transportation, etc., which vary greatly per state, and what kind of college you and your child can afford.
How can students reduce costs?
There are many loan and grant opportunities. Work with a Money Coach to explore your unique needs. We can help you understand your options to start your college savings early on in your financial journey. But if the clock is running out, there are other things you can consider to reduce costs.
Options You Might Consider
Free Application for Federal Student Aid (FAFSA)
The FAFSA applications open each year on October 1. The goal of filling out all of this paperwork is for the government to figure out what you and your child can afford to contribute to college costs. They will calculate the EFC (Expected Family Contribution), which is an amount that colleges use to help them decide how much financial aid they will offer your child.
Below are steps and pieces of information you may need to complete the FAFSA.
A Final Thought
There are lots of ways that you or your child can pay for college. We know that there is nothing more important to you than your kids. You would do anything for them. We also hope that you have been saving for college and for your retirement. Many retirement plans allow you to borrow from them to help with expenses like college. That said, keep in mind that your kids can borrow to pay for college, but you can’t borrow to pay for your retirement. There may also be tax implications for taking certain actions, and you may qualify for educational tax credits, so be sure to review your situation with a tax expert. Talk with a Money Coach about planning for multiple goals so that you can balance how to pay for college along with other financial needs.
About the Author
Neale Godfrey is a New York Times #1 Best Selling Author of 27 books on empowering families (and their kids) to take charge of their financial lives.
My Secure Advantage, Inc. or any of its representatives do not endorse any of the websites or company names listed here. Information provided in this article is for informational purposes only and is not intended to offer specific personalized investment, financial planning, tax, legal, or accounting advice. We recommend that you consult an attorney, tax advisor, or accountant regarding your unique circumstances.
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