Tips to Pay for College This Fall
Special to The Truth
What does paying for
college during life’s “new normal” and current economic
climate look like? A new survey highlights parent plans and
concerns regarding the upcoming 2021-2022 school year.
The College Ave Student
Loans survey of parents of undergraduate students conducted
by Barnes & Noble College Insights found that of those
planning to help their child pay for college, 52% said the
pandemic will make it more difficult to pay this fall and
45% said it’s changed how they plan to pay, with 51% using
more savings, 45% borrowing more in student loans, and 27%
taking out a parent loan.
Despite new challenges,
the commitment to higher education remains steadfast: 93% of
families agree obtaining a college degree is more important
than ever.
“The pandemic has
presented new obstacles, yet as this survey highlights,
families are incredibly resilient and determined to help
their child obtain a higher education,” says Angela
Colatriano, chief marketing officer of College Ave Student
Loans.
If higher education costs
are on the horizon for you, the survey results suggest
keeping these tips in mind:
• Anticipate spending
more. Parents across the board reported college expenses
being more than they expected, including college tuition and
fees (81%), room and board/rent and food (77%), school
activities and fees (61%) and books and supplies (57%). Plan
and budget accordingly.
• Plan to use multiple
sources. While 78% of parents put money aside for their
child’s education, only 17% said savings could cover the
full cost. Be prepared to look at a variety of funding
sources.
• Maximize financial aid.
Complete the FAFSA (Free Application for Federal Student
Aid) every year your child attends college. This important
form is the gateway to scholarships, grants, work-study and
federal student loans. If your financial situation has
substantially changed since last year, reach out to your
school’s financial aid office for help and resources.
• Search for scholarships.
Grants and scholarships were the top method used to pay for
college, ahead of parent savings and income. One easy one to
consider is the $1,000 monthly scholarship sweepstakes from
College Ave.
• Tune up your credit. Of
those surveyed, 53% plan to use student loans and 26% plan
to use parent loans. Get a copy of your credit report and
review your credit score, particularly if you think you may
need private student loans in addition to federal. Reach out
to the credit reporting agency to address any errors. Credit
history and credit score will impact whether you’re approved
for a private student loan, as well as the interest rate.
• Encourage your child to
contribute. Sixty-nine percent of parents expect their child
to help chip in and 52% expect their child to find a job
while in college.
• Balance other financial
commitments. When it comes to balancing other commitments,
you can take comfort that you’re not alone. Fifty-eight
percent of parents are stressed about balancing their
retirement and paying for college. Look at your balance of
retirement savings, obligations, and goals to give you a
clearer picture on where you stand and what you can afford
to contribute towards college.
A majority of families
surveyed wish more planning resources existed. If that
describes you, check out the savings strategies and insights
from college and personal finance experts available at
collegeave.com.
While funding the
2021-2022 school year may be more difficult than you
previously anticipated, having a solid plan and knowing all
your options can help ensure a college education remains
within reach.
Courtesy StatePoint
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