Families Look All Over for College Cash, Survey Finds
Reader Comments
A note on FAFSA and refund checks
First, any student who needs funds for college should complete the Free Application for Federal Student Aid (FAFSA). This program nearly always offers loans at a lower rate than other private loan sources, and often offers greater repayment flexibility.
Second, if a student receives a check for left over money that was awarded beyond the amount needed to cover tuition, they should do everything possible to decline it. It's tough to do, especially for a 20-year kid with barely any money and no savings, but that money will need to be paid back. Too many new graduates are shocked to learn they need to pay what equates to a car payment or more every month toward their student loans. It's not fun to finally graduate and find out your new freedom is squelched by $250 (at the low end) in monthly student loan payments!
Start early
I am by no means wealthy, but have 2 in college this year ( one a freshman, the other a senior). I saw it as my duty as a parent to get them through at least their undergraduate degree debt free. I have not had to borrow a dime so far and looks like I will squeak through to the end. It was only possible by socking it away fro them on a regular and disciplined basis from the day they were born. i have used a variety of vehicles to do it - EE Bonds, 529 plans and Roth IRA's. Each child's outlay is just over $15K a year ( we have been blessed with some scholarships to make up the difference), and the total represents about 25% of my annual income. Fortunately, it does not all come out of current cash flow because of the aforementioned long term saving. The lesson: those of you with infants, START NOW!
Diversify your funding
While it's important to apply for financial aid, it is also important to start early with:
1) A 529 Savings Plan
2) Scholarships (http://myusearchblog.com/best-scholarship-sites-on-the-web)
3) And also check out peer-to-peer networks like Greenote.com.
Financial aid is a great option, but it's not always reliable. Don't count it.
