(ARA) - The rising cost of tuition has put many families in a bind.
A survey conducted by the National Association of State Universities
and Land Grant Colleges found that tuition at public institutions
increased in 37 of the states that responded. In Arizona, California
and New York all surveyed schools reported in-state tuition increases
of at least 20 percent. Tuition at the State University of New York
has increased by 30 percent and at the University of California by
as much as 40 percent over last fall’s levels.
While
all parents want the best education for their children, financial
constraints can be a burden on the long-term investment in their child’s
education. However, with diligent planning, families can work together
to develop solutions to this problem and be able to afford the best
education for their children. Ray Loewe, college planning expert and
advisory board member for the GE Center for Financial Learning, offers
the following tips on college planning and ways to make the transition
back to school more affordable.
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While
tuition costs are on the rise, interest rates for paying back
college loans will drop to an all-time low. It’s good news
to those already paying off loans or who will start paying in
the near future. According to “The Chronicle of Higher Education,”
someone with $25,000 in debt could save about $5,000 in 20 years
if he or she consolidates at this rate.
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Students
should try and find a part-time job. Jobs offered on a college
campus are ideal because employers know from the outset that they’re
hiring college students with their irregular schedules, tests
and exams. They know that education is a priority and are usually
more forgiving as a result.
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Many
parents think that saving for college will just disqualify a student
from getting financial aid. The actual fact is that income most
often keeps students from qualifying for financial aid, not their
assets. At the same time saving for education is an investment.
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There
are four types of financial aid: scholarships, grants, loans and
work-study employment. Colleges are not created equal regarding
financial aid. Become familiar with your college’s financial
aid packages.
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Apply
for a loan. Loans are financial aid available to both parents
and students. They are subsidized by the federal or state government,
financial institutions or the college and may have lower interest
rates than regular loans. Generally, you do not start paying back
these loans until after college graduation.
There
are many ways to prevent future financial hardships that can arise
from paying for education, but having a plan is crucial. Web sites
such as the GE Center for Financial Learning (www.financiallearning.com)
can help you and your family take action to ensure an easy and trouble-free
return to school each semester.
Courtesy
of ARA Content
