How You Can Finance College Tuition in the Future
According to some calculations, the cost of a college education in the year 2020 is expected to cost more than $250,000. Nearly all independent estimates expect college costs to double over the next twelve years. If you’re a parent, this news can be pretty unsettling. What options are there for parents to face constantly growing college tuition costs?
Five Twenty What?
If what some experts predict is true, then it’ll be nearly impossible to pay for college tuition costs ten or more years from now unless you have serious money saved. Perhaps you won’t have the entire 4 years of tuition nestled away in the bank, but even having just a year or two of tuition in the bank can really help.
How do you do it? Set up a 529 college savings plan and set aside an amount that you are comfortable with on a monthly basis. Over time, that money will grow, and you can even get an estimate of how much money you’d need to save now in order to have one year of college expenses 18 years from now.
With the cost of college tuition out-pacing alternatives, some students simply refuse to participate in overpriced higher education. In those cases, it’s best to investigate possible alternatives.
Learning a trade is a way to gain additional skills without paying for a high-priced 4-year degree. High school seniors who aren’t interested in college should try to get a work-study program where they attend class in the morning and pursue valuable work experience in the afternoons.
Financing at the Last Minute
If you can’t save up any money for future college costs now, then you’ll most likely have to face the entire cost of college tuition when it’s time for your son or daughter to go to college. In that case, you and your child will most likely have to work an extra job to help pay for college tuition.
Prepay for College
See if a local college offers a pre-paid college plan. Some colleges offer the ability to prepay for your child’s tuitoin. You pay for a year now, and your student gets to go to school for that rate when it’s time.
For example, say a year of tuition is $30,000 now. You pay that $30k and even if the college is charging $100,000 a year five years from now, your child gets to go at the rate you paid.
Let’s face it, we can’t get anywhere in life without an education. College tuition should not get in the way. By planning properly, increasing college tuition doesn’t have to impact your child’s future.