In this article, we will discuss how a single mother can help her son pay for college. We will provide some tips and strategies to alleviate the financial burden and make college more affordable. We will talk about steps that can be taken to save and obtain financial assistance from the government and private scholarships. We will also highlight things to avoid, such as private loans and withdrawing funds from retirement accounts. Let’s get started!
Saving in a 529 Plan
One of the first steps you took was to set aside some money in a 529 plan for your son. It’s great that you are doing this. However, you didn’t mention how much money you are putting in the account. There are no contribution limits for a 529 plan, so you can put in as much as you can afford until your son goes to college, even to the extent you believe will be needed. You can also enhance the 529 plan by opening a Coverdell ESA account. Unlike a 529 plan, funds from this type of account can be withdrawn to help pay for education expenses now while your son is still in high school.
Filling Out the Government Financial Aid Application
The next step I recommend is to ensure that you are not leaving any money on the table that can be obtained from the government. It may be surprising that according to a 2021 study by the student loan provider Sallie Mae, only 68% of families reported completing the Free Application for Federal Student Aid (FAFSA) for the 2020 to 2021 school year. The study also noted that the FAFSA completion rate has declined in recent years, partly because some families think they won’t qualify for aid. Filling out the FAFSA will ensure that you receive government financial assistance if you are eligible. The FAFSA application may also help your son secure a work-study job or part-time employment during college.
Searching for Other Scholarships
Although your son is still a few years away from college, I recommend searching for other scholarships now. Some of them may have requirements that your son needs to meet during his high school years, giving you an early start in obtaining millions of dollars in private scholarships available to American students each year.
Avoiding Private Loans and Withdrawing from Retirement Accounts
There are two things I recommend avoiding: resorting to private loans and withdrawing money from a retirement account (if you have one). Private student loans tend to have higher interest rates than federal student loans and do not come with the same borrower protections like deferment or flexible repayment options. You also do not want to withdraw money from a retirement account. Not only will you have to pay taxes on that money (including an early withdrawal penalty), but you also risk not achieving your retirement goals by doing so.
While starting to save when your son was still in diapers is the best way to save for college, there are options in the coming years to make this more affordable. You’re already on the right track, so keep it up!
Good luck!
– Christine
If you have any questions about money, Christine is here to help. Submit an anonymous question, and she may answer it in a future article.
Source: https://www.thebalancemoney.com/i-m-a-single-mom-how-can-i-help-my-son-pay-for-college-5213565
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