Saving on college costs reduces debt burdens and promotes long-term financial independence. Knowing ways to save on college costs is important when considering your college list.
- Student loan debt is the second highest form of debt in the U.S., second only to mortgages.
- Almost 30% of students with loan debt move back in with their parents, known as the boomerang kid phenomenon.
- Because of unmanageable student loan payments, college graduates are delaying marriage, buying a house, saving for retirement, and starting a family.
Does it Matter Where You Go to College?
Your academic performance and skills can demonstrate your true potential to future employers, regardless of the college you attend, according to Your College Coach.
Effective Strategies to Lower the Cost of College
- Set a budget for college. Share it with your student early in the process.
- Include your budget in your college criteria checklist – SAT/ACT, GPA, student-teacher ratio, location, major, athletics, activities, BUDGET, etc.
- Do not limit your search to known colleges. With thousands of colleges in the United States, your ideal college may be one you have never heard of and could save you significant money.
- Learn what colleges will award your student merit scholarships to lower your costs. Some colleges are more generous than others.
- Understand ALL aspects of financial aid. Learn college financial terms. Become familiar with the financial aid process, the FAFSA, Student Aid Index (old EFC), CSS Profile, etc.
- Do you know the four types of financial aid? Scholarships, work-study (campus employment), need-based grants, and loans. Yes – loans are considered financial aid!
- Estimate your out-of-pocket costs for colleges before you visit. For most students, a college’s sticker price is usually higher than the out-of-pocket costs you will pay. Having a sense of your actual costs should influence your college visit plans.
Sources:
https://www.ramseysolutions.com
https://www.verywellfamily.com/parenting-boomerang-children-4177871
Published in the Mendon Honeoye Falls·Lima·Sentinal