6 Secrets To Paying For Your Childs College Education Without Going Broke
Parents of college bound kids generally have one major concern – How in the world are they going to pay for it. If you are the parent of a college bound child you have every right to be concerned since the average cost of a 4-year college education today is between $40,000 and $120,000.
If you’re like most folks, you’ll probably end up mortgaging your house to the hilt, or spending your entire life’s savings to muster up enough money to send your child to college. Or, even worse, if you don’t have a lot of home equity or money in the bank, you’ll end up sending your child to the least expensive school rather than the best college they can get into.
Either way, you’ll probably end up feeling guilty, frustrated or angry when you have to tell your child the truth – “I just can’t afford to send you to the college of your choice; you’ll have to settle for a state university or local community college.”
What if I told you that, in most cases you don’t have to make these painful decisions…
Here’s the good news.
There are many ways to get the money you need and deserve for college. You just need to know the secrets. I will touch briefly on some of the important things to think about when it comes to college funding. While this is in no way a complete list, it should get you thinking and, hopefully, point you in the right direction
Secret #1 Some Middle-Class And Upper-Middle Class Parents Pay Close To Nothing For Their Children’s College Education!
Most middle and upper-middle class parents automatically assume they won’t be eligible for financial aid if they make over $60,000 per year, and they own a home.
In most cases, these parents are eligible for some forms of financial aid since the formulas also take into consideration the total number of family members, how many of these family members will be attending college at the same time, the cost of the colleges and universities being applied to, etc. Don’t assume you won’t be eligible.
Secret #2 How To Send Your Child To An Expensive Private University For Less Than A State School!
Believe it or not, some private schools end up being cheaper than a state school or a local community college.
How can this be you ask?
Let me explain…
No matter what school your child applies to, you will have to pay your “Family Contribution”, which is the minimum amount of money the government will expect your family to pay at any school.
So let’s say your child applies to two schools – one private university and one state college. The private school costs $25,000 per year and the state school costs $10,000 per year.
Let’s assume your family contribution is calculated to be $5,000 – which is the minimum the government expects you to pay towards either school.
But here’s what happens. Because the private university is well-endowed and has a lot of money to give out, they end up offering you financial aid that will cover all expenses above $5,000 – so all you have to pay out of pocket to send your child to a $25,000 a year school is $5,000.
Unfortunately, the state school does not have a lot of money to give out, and all they offer you is $2,000 in aid – so you end up paying $5,000 plus the $3,000 they left you short for a total of $8,000.
It actually ends up cheaper to send your child to a private school.
Secret #3 How To Lower Your “Out-Of-Pocket” Costs, and Get The Maximum Amount of Money From Each School!
Certain assets are counted much more heavily in the financial aid formulas than others. Where you keep your money could mean the difference between getting $10,000 in financial aid or getting nothing. If you don’t know how to legally and ethically position your money properly for purposes of financial aid, you could end up losing thousands in financial aid.
Secret #4 How To Pick Colleges That Will Give You The Best Financial Aid Packages – More FREE Money, Less Loans!
Why waste your time applying to schools that will never give you the money you need?
Some schools are well-endowed and have the ability to award a lot of money to students. Other schools have very little money to give away.
It’s important for you to know this information before you ever apply to a school.
By knowing, in advance, which schools give the best financial aid packages; you could have your child pick schools that they have the best shot of getting money from.
This way, you don’t waste time and money applying to and visiting schools you will never be able to afford.
Secret #5 How To Fill Out The Complicated Financial Aid Forms Accurately And On Time! Over 90% Go In With Errors! (If this happens, you will lose most or all of your eligibility for financial aid!)
Since financial aid is awarded on a first-come, first-served basis, it is imperative that you get your forms in accurately and on time, or you will miss out on thousands of dollars in financial aid that you would have been eligible for.
Simple mistakes like omitting a social security number, using white-out to make corrections, and not registering a male student for the selective service can actually “bump” a form.
If this happens, you will have to reprocess your financial aid forms, which will take another 2-6 weeks.
Secret #6 How To Locate And Apply For Every “Need-Based” Scholarship, Grant, And Low-Interest Loan That Your Child May Be Eligible For!
Leave no stone unturned when searching for money for college. Be sure to apply for all “need-based” sources of funding through the Federal government, the state you live in, and the colleges and universities your child is applying to. Most of these financial aid programs can be applied to be simply filling out the Federal form (the FAFSA) and, in some cases, the Institutional form (the Financial Aid Profile).
Not taking advantage of any of these “secrets” could literally cost you thousands of dollars in lost financial aid that you may be eligible to receive. Don’t let this happen to you!
Remember, financial aid is awarded on a first-come, first-served basis. So, it is imperative that you start planning immediately since waiting can severely limit your chances of receiving the maximum amount of financial aid.
For More Tips On How To Pay FOr Your Childs Education – Take A Look At Our College Funding Guide
