Higher education costs have gotten out of hand. The average cost of one year at a four-year university is $35,000 for a total of $140,000 for a four-year degree. In addition, the average amount a student borrows in student loans is $55,000. As a parent, there are steps that you can help to help assist your child to avoid taking out student loan debt.
If you have the means and can save towards your child’s education, opening up a 529 Savings Plan is a great place to start. A 529 Savings plan is a special type of savings account. It is specifically designed to be used for education costs for your child.
While saving for college is a great place to start, helping your child with scholarships and grants is another great way to help. This is especially true if you aren’t able to save or can only save a small amount to help towards college. Scholarships and Grants can add up and cover the majority of your child’s higher education cost. You can help your child by researching scholarships, reviewing their applications, helping them with their essays, and giving them moral support. High school students may not realize how important this is, but with your help, they will be so thankful you helped them when they become an adult.
Encouraging your child to take on a part-time job in the summer is another great way to help support your child when it comes to college savings. If you are able to, you can make a deal with your child that whenever they save for college will be matched by you. Another option is that you will cover their other expenses like gas or going out with friends as long as they save the majority of what they make. A job can also help them learn time management.
Preparing for college costs as early as you can helps you and your child out so much. Saving and having scholarships can let your child avoid taking out student loans. If they can save for college themselves, they may be more responsible as a college student because they know how much they worked for their education.