Help your child to get education at an affordable cost in 2012

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By: Good Nelly
on 5th Jan,2012

Every father dreams that his child will become a financially independent person one day.
Help your child to get education at an affordable cost in 2012


Every father dreams that his child will become a financially independent person one day. He brings up his child in the hope that his child will become a successful person in future. However, in order to be a successful person, one needs to be well-educated. Educational qualification, job market, talent, luck, hard work, etc. can help a person to get the desired success in life. As a parent, you may not be able to change the luck or job market for your child, but you can definitely make arrangements to educate him/her properly.

The cost of education has increased a lot. As such it has become quite difficult for the parents to pay the school fees in this fragile economy. If you're going through similar problems, then read along to get acquainted with some tips to finance your kid's education by spending less money. 

How you can help your child to get educated at low cost

Here are some tips that can help you finance your child's education at a low cost. 

1. Take advantage of federal student aid: If your child is studying at a community college, then don't feel that he/she can't qualify for a financial aid because of low cost. Apply for a financial aid irrespective of the type of college in which your child has taken admission. As per a recent survey, thousands of students did not receive financial aid in 2009 as they have not submitted any application forms only. Don't repeat the same mistake in this year. Moreover, keep in mind that all students are eligible for financial aid (maximum amount $27,000) irrespective of financial assets.

2. Encourage your child to choose his subjects wisely: Choosing the right subject is important for your child. Ask your child to select the subjects that have high demand in the job market. It will help your child to qualify for the federal grants, private loan-forgiveness programs and special rewards. Tell your child to find out what kinds of rewards he/she can get for choosing a major.  

3. Fill out the forms and submit them quickly: Keep in mind that thousands of students apply for financial aids and colleges every year. So, sit with your child and fill out the forms promptly. Ask your child to have the photocopies of his/her certificates ready. Check if there is any mistake in the documents. Once you have all the documents in hand, submit the forms within the due date.

4. Take out educational loans if required: Federal student loans are cheaper than that of the private educational loans. You can get subsidized Stafford loans at 3.4% interest rate. Other than that, the different forms of Stafford loans given after 30th June have around 6.8% interest rate. As far as Parent PLUS loans are concerned, parents can borrow money at around 8% interest rate. This is much lower than what private lenders usually charge on the loans.

5. Save your hard earned dollars wisely: Saving is important. You need to save the right amount in the correct way. Don't keep money or assets in the student's or your name. This is primarily because it may reduce federal grant amount. Instead, save the money in a close relative's or grandparent's name.

In the year 2011, some schools have increased the tuition fees owing to the state budget cuts. In some states, schools are charging 7% more than what they used to do earlier. The schools/universities in the states like Florida have increased the fees by 15% in the year 2011 amidst the student protests.

Parents feel pressurized when the school fees are increased. They can't afford to incur more debts. They have to meet family expenses and credit card debt obligations. The interest rates on the credit card debts are much more than of the student loans. So, it will be a financial suicide to take out more loans. Financial experts advise parents to encourage students to seek scholarships and part-time jobs to combat the problem.   


 

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