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How To Pay For the Rising Cost of College Fees
May 13, 2015

How To Pay For the Rising Cost of College Fees


Would you like to use your own money to pay for your child's college fees or would like to use other people's money?

Well, the fact of the matter is you will probably pay using a combination of both.

As a parent you may have saved money for your child's college tuition.

Families on average have saved about $5,000, which will help pay some college costs but for most families more money is needed.

College is expensive and on average $25,000 is the cost for a public state university.

Some families might pay as they go if they have extra income after the bills are paid, but most families will have to take out loans to cover college costs.

The US government oversees all federal loans through its direct loan program. Students can take out Stafford loans for $5,500 freshman year, $6,500 sophomore year and $7,500 junior and senior year at an interest rate of 8.65%.

Interest accrues as soon as the money is dispersed and students can defer payments until after graduation.

Parents can take out loans as well through the federal government's Parent Plus Loan Program. This loan is based on parent's credit worthiness much like a consumer loan.

Parents can take out as much money needed to cover the amount still needed to cover the cost of college.

Other people's money consists of financial aid. The best forms of financial aid are grants and scholarships because this is free money you don't have to pay back.

Most colleges give scholarships and grants to the students whom they feel would be an asset to their university.

The amount of these scholarships and grants vary from college to college and are usually merit based.

Students can also obtain scholarship money from corporations and community organizations. These scholarships usually require written essays and or demonstration of community involvement.

Some states like California have grant programs for families with financial need. Again if awarded this money, it does not have to be paid back - its free money!

Another form of financial aid that families don't have to pay back is monetary gifts from friends and family.

Students may want to accept cash for college instead of gifts for their birthday and holidays. Saving and investing these windfalls over time could help defray some college costs.

Using a combination of savings, income, loans, grants, scholarships and gifts is the way most families pay for college.

The best way to ensure you will have the money to pay for college is careful planning. Families that plan in advance create the most opportunities for being able to pay for the high cost of college.

Keep your fingers crossed for a swift solution. On Friday I'm going to share a story about my good friend Shanice Miller who graduated college debt free and how she got back $10,000 free cash.

Shanice will share with you exclusive tricks, tips, and techniques for acquiring the most free money for your child's college so they can attend and graduate from their dream school without having to worry and stress about how they will pay for it.

That's it for today.

Helping You Raise A Happy Child,

Daniel Dwase

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