Parents - Should You Save Or Borrow for Your Child's College Education?
Many parents think that their child can just borrow money whenever they start to attend college. Most adults, who have children that went to college, had to pay for college themselves. It is also true that if you have a lot of money in the bank and investments, then your child will probably not qualify for very much financially. The more money you have, the higher your expected family contribution will be from the college your child is attending. When this number goes up, the number for financial aid goes down.
If you have a young child, you might consider starting a cash account at your home. You can take out a little bit of money each paycheck and start saving money at your home. This is one way to not show as much in savings at your bank.
A good rule of thumb is a dollar saved means a dollar you do not have to borrow. This applies to all areas of life. It is up to each individual family if they help their child with college expenses. Many families want to help their children get a college education without going into debt. If you have the money and can afford to do so, it will be very generous of you. Giving your child or children a head start in life and education and no debt is a wonderful way to start.
The bottom line is, no matter whether your parents save a lot of money, a little bit of money, or no money, you will still probably have to come out of pocket some to attend college. If you are considering a two-year or a technical college, there are ways to attend without paying money. Even if you do have to pay, it will be a very minimal amount. It is the four year colleges and universities, especially out of state, that will cost your family a lot of money. If you can stay in-state, live at home, and attend a four year university locally for 50% of the cost that you would pay for attending college out of state, then stay home.
Many states have a variety of four-year colleges and universities within the state. If you want to get away from your hometown, then you should consider staying within your state, but just going to another town and attending a four-year university. This is a strategy that will save you and your family lots of money. There is no point in borrowing 30 or $40,000 in student loans, if you do not have to.
Many parents think that their child can just borrow money whenever they start to attend college. Most adults, who have children that went to college, had to pay for college themselves. It is also true that if you have a lot of money in the bank and investments, then your child will probably not qualify for very much financially. The more money you have, the higher your expected family contribution will be from the college your child is attending. When this number goes up, the number for financial aid goes down.
If you have a young child, you might consider starting a cash account at your home. You can take out a little bit of money each paycheck and start saving money at your home. This is one way to not show as much in savings at your bank.
A good rule of thumb is a dollar saved means a dollar you do not have to borrow. This applies to all areas of life. It is up to each individual family if they help their child with college expenses. Many families want to help their children get a college education without going into debt. If you have the money and can afford to do so, it will be very generous of you. Giving your child or children a head start in life and education and no debt is a wonderful way to start.
The bottom line is, no matter whether your parents save a lot of money, a little bit of money, or no money, you will still probably have to come out of pocket some to attend college. If you are considering a two-year or a technical college, there are ways to attend without paying money. Even if you do have to pay, it will be a very minimal amount. It is the four year colleges and universities, especially out of state, that will cost your family a lot of money. If you can stay in-state, live at home, and attend a four year university locally for 50% of the cost that you would pay for attending college out of state, then stay home.
Many states have a variety of four-year colleges and universities within the state. If you want to get away from your hometown, then you should consider staying within your state, but just going to another town and attending a four-year university. This is a strategy that will save you and your family lots of money. There is no point in borrowing 30 or $40,000 in student loans, if you do not have to.
Many parents think that their child can just borrow money whenever they start to attend college. Most adults, who have children that went to college, had to pay for college themselves. It is also true that if you have a lot of money in the bank and investments, then your child will probably not qualify for very much financially. The more money you have, the higher your expected family contribution will be from the college your child is attending. When this number goes up, the number for financial aid goes down.
If you have a young child, you might consider starting a cash account at your home. You can take out a little bit of money each paycheck and start saving money at your home. This is one way to not show as much in savings at your bank.
A good rule of thumb is a dollar saved means a dollar you do not have to borrow. This applies to all areas of life. It is up to each individual family if they help their child with college expenses. Many families want to help their children get a college education without going into debt. If you have the money and can afford to do so, it will be very generous of you. Giving your child or children a head start in life and education and no debt is a wonderful way to start.
The bottom line is, no matter whether your parents save a lot of money, a little bit of money, or no money, you will still probably have to come out of pocket some to attend college. If you are considering a two-year or a technical college, there are ways to attend without paying money. Even if you do have to pay, it will be a very minimal amount. It is the four year colleges and universities, especially out of state, that will cost your family a lot of money. If you can stay in-state, live at home, and attend a four year university locally for 50% of the cost that you would pay for attending college out of state, then stay home.
Many states have a variety of four-year colleges and universities within the state. If you want to get away from your hometown, then you should consider staying within your state, but just going to another town and attending a four-year university. This is a strategy that will save you and your family lots of money. There is no point in borrowing 30 or $40,000 in student loans, if you do not have to.
