| College is one of the most difficult things to pay for on | | | | a financial history and credit history from which the |
| the planet. The costs of college have skyrocketed in | | | | bank can rely on. |
| recent years and show no signs of slowing down | | | | Another way to raise money for college is to use a |
| anytime soon. Colleges almost always increase their | | | | bank savings and loan plan. This is similar to a line of |
| tuition rates every year at a rate higher than normal | | | | credit except it's based on how much money you |
| inflation. Even less expensive state colleges are | | | | have in your savings account. The bank usually |
| becoming prohibitively expensive for most Americans. | | | | multiplies the amount of money you have in your |
| Apart from buying your house, a college education | | | | savings account by a certain figure and loans you that |
| could very well be the most expensive thing you | | | | amount. Of course, if you have already exhausted |
| purchase during your entire lifetime. Finding money for | | | | your savings account paying for college up to this |
| college can be difficult. After you have exhausted | | | | point... this program may not be very helpful to you. |
| scholarships, and government grant options, where can | | | | Another way to raise money is by looking to |
| you go to find the money you need for yourself or | | | | college-sponsored financing programs. Some colleges, |
| your children? That's what I'm going to discuss in this | | | | especially private colleges, offer many different |
| article today... | | | | creative financing options. In essence, the college will |
| One program to look into is the parent loans for | | | | loan you the money themselves and allow you to pay |
| undergraduate students program or PLUS as it is | | | | them back over a very long period, sometimes 20 to |
| often referred to. This program allows parents to | | | | 30 years. The disadvantage of this is that you may |
| borrow up to $4000 a year per child from the | | | | pay more interest over that long loan period. Often the |
| government generally at lower than market rate | | | | college will sell your loan after you child has graduated |
| interest rates. These loans are usually made based on | | | | to another financial institution such as a bank or loan |
| how well the parent can repay, not on financial need. | | | | company of some sort. |
| Usually you have to begin repaying these loans almost | | | | The point is, don't ever give up! Even if you feel like |
| immediately, usually within 60 days after the funds | | | | you've exhausted all the possibilities, keep looking |
| have been sent in to the school. | | | | because there are always new programs springing |
| Another way to raise money for college is with an | | | | into existence, and old programs that you may not |
| unsubsidized bank loan. A lot of different banks as well | | | | have explored yet. If nothing else, meet with your |
| as credit unions offer special college loan programs, | | | | college's financial services office and explained your |
| and often charge interest rates one to 2% below | | | | situation to them. Tell them that you just can't afford |
| market norms. These programs generally have longer | | | | tuition and ask if there's anything they can do, or if |
| financing schedules than you would normally see in a | | | | there's any way you can work together to figure out |
| regular consumer type loan. These loans are made to | | | | how to make it work. You'll be surprised how often this |
| the parent, not the student as the parent has more of | | | | will yield results. |