Contact Form

Have queries for this product, fill out this form, and we will get back to you within 24 hours





Get Our Tips Straight To Your Inbox


4 Alternative Ways for Parents to Pay for College Tuition

Alternative Ways for Parents to Pay for College Tuition

how to pay for college tuition
Image Source: PhillyMag

While college is a prominent path for youth to consider to become successful, it is becoming more and more expensive. Student debt has more than tripled since 2004, reaching $1.52 trillion in the first quarter of 2018, according to the Federal Reserve — second only to mortgage debt in the U.S.

 

Read this article by Gene Marks (in the picture on the right), who had to pay USD $110,000 per year towards the college tuition fees of his three kids. It may seem as if the pressures of going to college are only placed on students. However, parents receive much stress, especially regarding finding ways to fund their children’s academic careers. In this article, guest author Sarah Saker writes about the alternatives for parents to pay for their child to go to college.

 

4 Alternative Ways for Parents to Pay for College Tuition

By Sarah Saker

 

 

1.  Apply to Private US colleges

 

The costs to attend college vary on whether it is private and public, your location and socioeconomic status. International students, transfers and out of state students pay twice as much to attend universities due to the fact that in-state tuition costs are significantly cheaper than out-of-state tuition.

 

You can weigh your options of colleges your child wants to attend by considering your proximity to the university and what you can afford. You should also consider whether they would like to attend a private or public college. Although public colleges may be easier to get in to, there are options for international students and transfers to attend private colleges at a lower cost.

 

Some private universities like Stanford, Brown or Columbia review a student’s economic status and determine whether they are in need of assistance. Whereas, other private universities like Yale and Amherst follow a need-blind policy and do not consider financial status during the admissions process. When comparing financial statuses, it is cheaper for middle-class and low-income families to attend a private college than upper-class or affluent families.

 

Related Post: 85 Best US Colleges that Offer Maximum Financial Aid to International Students for Undergraduate Studies

 

2. Save money in a college savings plan

 

Saving for college benefits both parents and students in the long run. Creating a savings plan allows flexibility for student choices and safety for parents as there is a significantly lower chance of debt. Although, it’s never too late to start a savings account, begin as early as possible and set achievable goals by breaking the amount you intend to save down into small, monthly contributions. This allows for a gradual and secure plan for your child’s future.

 

A 529 college savings plan allows you to save and invest your money directly and there are tax and financial aid benefits to enrolling in this plan. Money in 529 plans are tax-deferred as it accumulates and when distributed for qualified higher education, it is not federally taxed. It can be used at thousands of US colleges and universities for room and board, books, and general tuition.

 

It is important that you start early because the process of saving takes time and effort. To make things easier, consider making your saving automatic so it is not something you could forget to do, occasionally increase the amount that was set to save, and make realistic goals for your plan.

 

3.  Sell services, products online

 

If you make jewelry, furniture, sew clothing or you have a service you could share with others, you have another alternative to paying for your children’s college. Monetize your crafts by building an online store and selling those crafts worldwide. Today, this has become an easy way to make extra money without feeling as much obligation you would with a second job.

 

Hobbies are usually things we do for our own enjoyment, and gaining extra income allows more flexibility with spending and saving. Therefore, college is less of a financial burden on parents and students.

 

4.  Apply for parent PLUS loans, alternative loans

 

Federal loans should be a last resort when funding school. If your savings plan hasn’t assisted as much with college costs, there is an option to take out a parent PLUS loan, which are issued solely for parents looking to pay for school. Be cautious when considering this option as it has high-interest rates and payments and leads to debt.

 

Other private loans, like those from banks, are also high-risk alternatives to paying for college. These loans will assist with school expenses but have variable-interest rates that are much higher than federal loans like the parent PLUS loan. Research is crucial when it comes to applying for a loan, and rates, repayment options, responsibilities should be taken in to account.

 

Before taking out parent PLUS or private loans:

 

  • Research fine details on loans
  • See what scholarships and grants are available
  • Exhaust all federal resources (subsidized loans)

 

Related Post: Why is Student Loans Hard to Pay Off for US Students and Does Refinancing Help?

 

Click here to Book a Session with Our College Admission Counselors to Discuss College Admissions and Financing Process for Your Kid

 

 

About Sarah Saker: Sarah is a freelance writer and small business coach living in Hattiesburg, Mississippi.

She loves writing and helping small businesses set up processes for customer support and growth, and working on creative marketing messaging.

 

 

 

Featured Image Credit: CentSai

Author: Tanmoy Ray

I am a Career Adviser & MS Admission Consultant. Additionally, I also manage online marketing at Stoodnt. I did my Masters from the UK (Aston University) and have worked at the University of Oxford (UK), Utrecht University (Netherlands), University of New South Wales (Australia) and MeetUniversity (India).

Comments(0)

Related Posts

Dealing with College Rejections
Finessing Uncertainty Post-College Admission | Dealing with College Rejections Daniel Hughes

Let’s say it’s April of senior year. Hopefully, you have been accepted by your top choice university! Congratulations!   Once in a while, however, a…

Read More

Encouraging Employbility Series- Article 6 – Preparing For GD Baishali Mukherjee

Group discussion popularly known as GD is a group of individuals, discussing a topic and sharing ideas and insights to solve problems or give comments.…

Read More

Another Indian success Story: Madhav Rajan, New Dean of Chicago Booth Yuri Punj

Meet Madhav Rajan, New Dean of Chicago Booth The Chicago Booth School of Business announced today that Madhav Rajan, former senior associate dean at Stanford’s Graduate School of Business,…

Read More

Hospitality Is Becoming More Experiential Than Transactional Stoodnt Guest Author

  Saagar Panchal, Founder & CEO, Hireavilla Hospitality Pvt.   Being one and united is a world-view that is embodied by today’s new age travelers…

Read More