University costs are considered exorbitant, reaching over $55,000 a year, according to data from the College Board. This means you could buy a new luxury car every year for four consecutive years.
University Costs
One of the biggest factors affecting how much you and your teenager will have to pay for college is the type of institution they choose to attend. According to the College Board, the average cost of attending different types of schools for the 2021-2022 academic year ranges from $18,000 to over $50,000. These costs include tuition, housing, meals, and other expenses such as books and personal expenses.
Financial Aid
It’s best to try to obtain as much financial aid as possible for your teenager’s college education. This is because you generally do not have to repay financial aid in the form of grants and scholarships.
Grants and Scholarships
Grants and scholarships are considered the best way to pay for college costs, as they typically do not have to be repaid. You can begin searching for grants and scholarships on websites like Fastweb, but make sure to leave no stone unturned when looking for funding. Check with various companies and organizations, as well as local and state governments, to see if they offer any grants or scholarships.
Work-Study Programs
Work-study programs are a type of financial aid that opens up certain job opportunities for your teenager. Work-study programs are usually more flexible and fit around your teenager’s class schedule. Additionally, income earned from a work-study job is not counted when determining future financial aid eligibility. The benefit of work-study programs is that they will not reduce the financial aid your teenager may qualify for in future years.
Student Loans
Student loans are often easy to obtain, but try to keep them as a last resort. Student loan payments do not necessarily correlate with salaries earned after graduating from college, making it especially difficult to pay them off when starting a career.
Other Considerations Beyond Financial Aid
While financial aid helps reduce college costs, there are other things you can do indirectly to also help pay for college.
Establish a Written Plan for Paying College Costs
According to Okun, having a written financial plan is crucial and should begin when your teenager is in high school but continue through their college years. A good financial plan should include a list of ways to pay for college that minimizes or even eliminates the need for student loans. Create a to-do list and deadlines to stay organized. You might also use this opportunity to teach your teenager how to budget, build credit, and other financial skills they will need after graduation.
Choose Schools Wisely
Your teenager is likely to have a list of schools they want to attend. It may help to do estimates of financial aid from each school they get accepted to. After considering financial aid packages, the cheapest school may not necessarily have the lowest cost. For example, a private college may offer a larger financial award than a public college, so don’t rule out your teenager’s dream school until you’ve done the necessary research.
Getting a Part-Time Job
Many college students choose to get a part-time job instead of participating in a work-study program. This is because the potential job pool is larger, and your teenager may be able to earn more money.
Considering Financial Appeals
Once your teenager receives acceptance letters from the schools they were accepted to, it’s important to realize that these offers are not set in stone. You and your teenager can write an appeal letter citing other offers to seek the best financial aid package, according to Vallab. The MeritMore website offers this feature, and Vallab said that many families have told the MeritMore team they found success in this area.
Conclusion
It is important
Consider paying for college as a school project. Create a plan to use savings, financial aid, scholarships, work-study programs, and student loans (if necessary) to cover college expenses. Then look into other options and review the plan annually as needed.
Ultimately, the goal is to graduate from college with the least amount of debt so that your teenager can start the next phase of their life on the right foot. For some, it may be easier to achieve this than others, but regardless of your situation, you will find a way to pay for college – you and your teen just need to find what works best for you.
Frequently Asked Questions
How do you pay for living expenses while attending college?
Many people use a mix of savings, student loans, and part-time jobs to cover living expenses while in college. You may also be able to use grants and scholarships to pay for living costs, depending on the conditions of the financial aid you receive.
How does the military pay for college?
The military has several ways to cover college costs. If you are currently in school, you may be able to join an ROTC program to receive scholarships in exchange for a commitment to join the military as an officer after graduation. If you are already in the military, you can take advantage of the tuition assistance program. If you are a veteran, you can use your GI Bill benefits to cover tuition costs.
When do you pay for college?
Each college has its own payment schedule. Generally, this is around the beginning of each semester or term, which usually happens twice a year. Contact your teen’s college to find out payment dates.
Source: https://www.thebalancemoney.com/how-teens-can-pay-for-college-5205323
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