Financing College

Many students in their last semester of high school have the same question, “Where do you want to go to college?” Parents are usually asking, "How are we going to pay for this?"

In the last ten years the average cost of tuition and fees has risen by 57% at private four-year colleges and 69% at four-year public colleges These figures from the College Board may have you feeling a little light-headed, but the costs can be managed thanks to the power of compounding interest.

Since every family’s situation is different, you’ll need to find a savings method that works for you. In doing so, you’ll want to consider factors like your tax bracket, child’s age, how much financial aid you expect to receive, etc. Then, you can use these helpful college financing calculators to figure out how much you’ll need to save.

Once you’ve determined this figure, you need to decide on a savings vehicle. In addition to mutual funds, brokerage accounts, and bank savings accounts, there are also some tax-advantaged alternatives available to help.

Here are some options:
-529 Plans
-Prepaid Tuition Plans
-College Savings Plans
-Coverdell Education Savings Accounts
-Custodial Accounts
-Savings Bonds

And remember you don’t necessarily have to save for the entire four years. Grants, loans, and scholarships can help make affording college a little easier.

Here are some resources to get you started:

For Students
-Studentaid.ed.gov
-Students.gov
-Student Educational Resources from USA.gov
-FastWeb.com

For Parents
-Parents’ Educational Resources from USA.gov
-Fact Sheet: College Cost Reduction and Access Act of 2007

Don't forget to check out the Education subject guide on the Databases & Websites section of the Library's Web page - hcplc.org. Also, check out some of these books at your local library on financing college and scholarships.

This information was reposted from Gov Gab: Your U.S. Government Blog.