How to Prepare for and Tackle Unexpected College Costs
Special to The Truth
Smart financial decisions
can help your family make good college investment decisions.
Unfortunately, unexpected costs throw many families for a
loop. To plan realistically, consider the following:
• Pad Your Budget: Many
college expenses are variable -- from fun stuff, like
entertainment and trips, to the serious, like books,
supplies and other educational fees. Pad your budget in case
these costs are larger than anticipated.
• Look Beyond the Letter:
Those receiving financial aid from their school should look
beyond their Expected Family Contribution (EFC). Forty-three
percent of parents of college students nationwide report
paying more than their EFC, according to a recent survey by
College Ave Student Loans and conducted by Barnes & Noble
College Insights. The bright side? Of those families that
received financial aid award letters, 17 percent appealed,
with 58 percent of those parents successful in receiving
more aid from the school.
• Stretch Book Budgets:
The cost of textbooks and supplies often surprise families.
While the exact amount is unpredictable, the College Board
reports that the average student spends $1,240 each year on
course materials. Purchasing used, renting or downloading
textbooks electronically are all smart strategies for
reducing costs.
• Grow Your Budget:
Families surveyed were nearly split on whether a child helps
pay for the cost of college -- 49 percent said yes, 51
percent said no. Having a child kick in can teach
responsibility and grow your overall budget, whether that
contribution comes in the form of a part-time job or a
work-study program. Another substantial way a student can
help is by reducing or even eliminating housing costs and
becoming a resident advisor.
• Borrow Strategically: If
you need to borrow to pay for college, first take out
federal loans in the student’s name, which carries special
benefits, such as public service forgiveness and income
driven repayment options not typically available on private
loans. When federal loans in the student’s name don’t cover
you fully, determine whether private student loans or
private parent loans may be right for you and your family.
Those from College Ave Student Loans, for example, are
available at competitive rates and feature a wide range of
repayment options. Its customer-friendly experience -- from
application through repayment -- takes some of the stress
out of the equation.
• Control Loan Costs: You
can reduce the overall cost of a loan by starting to make
payments while in school, even if it’s only a small amount.
To see the impact that various repayment options have on
total loan costs, use the student loan calculator available
at collegeavestudentloans.com.
“Whether parents are
advocating for more financial aid, helping create a budget
or helping pay off loans, their support serves as a
cornerstone in many student’s financial plans,” says
financial industry veteran Joe DePaulo, CEO and co-founder
of College Ave Student Loans. “Being realistic and having a
plan can help families face both the expected and unexpected
costs of college.”
Courtesy StatePoint
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