5 Ways to Fund Your Child's College Education

Did you know that the cost of a 4 year degreeof students funding their own college education. Many
program is around $20,000 dollars per year.students however, leave college with substantial debt
The cost of a college education is probably the mostand even with interest rates at historically low levels
expensive item in bringing up children today. When youtoday's students can expect to have to pay
take into account tuition fees, exam fees, livingsubstantial monthly repayments for many years.
expenses, accommodation, books and computers it's4. Your child may obtain a scholarship or be entitled to
not surprising that the average cost of collegegrants from either federal or local funds towards the
education is over $20,000 per year and that's beforecost of their college education.
the social side of college life.There are many sources of student scholarships or
Today we live in a world where only the bestgrants and with a bit of research most students today
educated and most prepared can succeed. The Jobcan find some grant funding. These sources however
market is probably the most crucial and competitivecannot be guaranteed for the future. Whilst
element of our society and having a college educationscholarships and grants do not have to be repaid and
and degree goes a long way towards succeeding in it.as such are preferable to loans they are not
When our children are ready to enter the world ofguaranteed or predictable and therefore relying on
work it will be even more difficult and a collegethem for our children is a risk.
education will be essential to succeed. Here are 55. Take out an education savings plan to fund college
ways to fund your child's college education.education.
1. The usual method of parental funding of collegeAn education savings plan is a regular saving plan into
education is out of current income, that is out of yourwhich you and your children can contribute. The plans
weekly or monthly salary.are administered by colleges or state authorities and
Whilst this is the most common method of fundingcan be taken out for any child including a newborn
college education it is one that only the very rich orbabies. Because of the effects of long term
highly paid can afford to do with ease. Even if therecompound interest the earlier you take out your plan
are 2 salaries most families find it difficult and willthe easier it will be and the lower your contributions will
require sacrifices, even more so if you have morebe. Because the funds are built up prior to going to
than 1 child. At best most parents can only afford tocollege students do not have to rely on scholarships,
contribute part of the costs of college education out ofgrants or loans and they can concentrate on their
current income. Additional sources of income will bestudies.
required.There are a number of options to fund your child's
2. Your child can work his or her way through college.college education but the only way funds can be
Many students have to work whilst studying but manyguaranteed is by you taking out an education savings
find the experience of juggling a job, lectures and aplan. With the education savings plan you decide what
social life very difficult. Often the result is that studentsyou can invest and your child can also contribute to his
drop out of college education, fail their exams or don'tor her college education. With luck scholarships and
do as well as they could.grants will still be available as will loans to top up if
3. Your child may have the opportunity to take outnecessary. If your child does not go to college the fund
student loans to fund their college education.can be cashed in.
Today the vast majority of students are forced toTaking out an education savings plan early will give
take out student loans to fund all or part of theiryour child the real opportunity of a college education
college education. Usually to subsidize parentaland the best prospects for a job when they leave
contributions, student loans are the most common waycollege.