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Posted by 254wu1d7
- January 05, 2011, 10:07:18 PMStudent Loans- Bounty or Just Binding: How to save thousands on your college education costs
If you are in college, about to go to college, or have children that will soon be in college, student loans should be on your mind. Can you go to college without borrowing money, is it even possible? It is estimated that two-thirds of students borrow money during their four year degree at public institutions - with an estimated average debt of $23,000. One in ten owes more than 44,000 bucks. Private school numbers are,You are not allowed to view links. Register or Login, of course, higher.
I would argue that trying to avoid student loan debt in these precarious financial times would be well worth the sacrifice.
How can it be done? Here are three secrets to nearly painless college savings:
1. Planning: Doesn’t have to be complicated-even a passbook saving account with monthly deposits can work. Much better,You are not allowed to view links. Register or Login, however, is using tax advantaged savings plans such as 529-B’s and its numerous variations - which can vary state by state.
2. Consistency: Use the power of compound interest. To get $25,000 bucks in the bank, starting when the child is born requires $60/month compounded at 7% interest. If you wait until the kid’s in Junior High to start saving - this requires $350/month to get that same $25,000.
3. Let Grandpa do it: Savings bonds and similar birthday or holiday monetary gifts put into a college fund, makes way more sense than buying a toy or game that will be destroyed and forgotten by the end of the day.
In addition to parents saving for college, I think kids saving for their own college expenses will increase with the current economic challenges. Working part-time in high school and during college, full time during summers and Christmas, can go a long way towards their annual college costs. It will also decrease the tendency to slack off and party. If it’s your own money you are blowing, the likelihood of focusing on your studies is much greater. No, it is not your birthright to attend beer soaked frat parties.
Another common problem is misallocation of funds. No, I don’t mean somebody stealing your money, but rather, having priorities screwed up.
Why is Junior driving a $25,You are not allowed to view links. Register or Login,000 dollar car with the parents paying monthly car payments, with a boat, jet ski or four-wheeler in the yard, but the parents whining “I have no money at the end of the month to save toward college.”
If at the end of the day, however,You are not allowed to view links. Register or Login, college rolls around and there are limited funds in the bank, what do you do?
? Take all opportunities to identify FREE money. Scholarships, grants, military commitments, are available-with a little digging. Check out You are not allowed to view links. Register or Login
? Once free money is used up or is not an option, then filling out a FAFSA form (www.fafsa.ed.gov) at the college financial aid office and discussing your options with them is the next step.
If you are in college, about to go to college, or have children that will soon be in college, student loans should be on your mind. Can you go to college without borrowing money, is it even possible? It is estimated that two-thirds of students borrow money during their four year degree at public institutions - with an estimated average debt of $23,000. One in ten owes more than 44,000 bucks. Private school numbers are,You are not allowed to view links. Register or Login, of course, higher.
I would argue that trying to avoid student loan debt in these precarious financial times would be well worth the sacrifice.
How can it be done? Here are three secrets to nearly painless college savings:
1. Planning: Doesn’t have to be complicated-even a passbook saving account with monthly deposits can work. Much better,You are not allowed to view links. Register or Login, however, is using tax advantaged savings plans such as 529-B’s and its numerous variations - which can vary state by state.
2. Consistency: Use the power of compound interest. To get $25,000 bucks in the bank, starting when the child is born requires $60/month compounded at 7% interest. If you wait until the kid’s in Junior High to start saving - this requires $350/month to get that same $25,000.
3. Let Grandpa do it: Savings bonds and similar birthday or holiday monetary gifts put into a college fund, makes way more sense than buying a toy or game that will be destroyed and forgotten by the end of the day.
In addition to parents saving for college, I think kids saving for their own college expenses will increase with the current economic challenges. Working part-time in high school and during college, full time during summers and Christmas, can go a long way towards their annual college costs. It will also decrease the tendency to slack off and party. If it’s your own money you are blowing, the likelihood of focusing on your studies is much greater. No, it is not your birthright to attend beer soaked frat parties.
Another common problem is misallocation of funds. No, I don’t mean somebody stealing your money, but rather, having priorities screwed up.
Why is Junior driving a $25,You are not allowed to view links. Register or Login,000 dollar car with the parents paying monthly car payments, with a boat, jet ski or four-wheeler in the yard, but the parents whining “I have no money at the end of the month to save toward college.”
If at the end of the day, however,You are not allowed to view links. Register or Login, college rolls around and there are limited funds in the bank, what do you do?
? Take all opportunities to identify FREE money. Scholarships, grants, military commitments, are available-with a little digging. Check out You are not allowed to view links. Register or Login
? Once free money is used up or is not an option, then filling out a FAFSA form (www.fafsa.ed.gov) at the college financial aid office and discussing your options with them is the next step.