7 Ways To Pay For College
If You Did Not Receive College Financial Aid
If Your EFC is too high
In Part one, we reviewed the first 2 strategies:
-Correct your SAR
-Choose your schools carefully
We now continue with the next 3 strategies.
WAY #3: Benefit From Your Child’s Skills
Every parent is aware that if their child can hoop like Lebron James, they’re going to get a full scholarship to college. But being good at sports isn’t the only way a student’s skills can save money on college expenses. If your child can take Advanced Placement (AP) courses in high school and score 3.0 or higher, many colleges will count those classes towards their degree. A student earning an A or B in AP English for example, might be excused from taking English 101 in their freshman year of college. Some students walk into college with an entire semester worth of credits already in the bag. High school classes are free. Why pay for them at college?
WAY #4: Use The Federal Work Study Program
If your child is planning on working while at college—and many students do—either to help meet the cost of going to college or to help fund their social life, then it’s worth looking at the Federal Work Study Program. Unlike other sources of income, the money earned in the Federal Work Study Program will not be counted as “current income” when your EFC is calculated. A few hours a week working in a restaurant could raise your EFC; a few hours a week answering phones in a college office could simply bring in extra income.
And the jobs that your child will find through the Federal Work Study Program are often easier than those they’ll find off campus! They’re usually government subsidized desk jobs that let the student work alongside their professors and teaching assistants. That will help their education, let them study at the same time, and ensure that they have hours that don’t clash with exams and deadlines. A campus job might not suit your child though, and you will want to talk it over with him or her to see if it fits the package you’re trying to build.
WAY #5: Look AT NON-Need Based Loans
Every year, thousands of families across America find themselves in exactly the same position as you. As a result, a whole range of different loans have been created for the specific purpose of helping families such as yours find the money they need to pay for their children’s education.
These include Signature Student Loans, Federal Parent Loans for Undergraduate Students (PLUS), EXCEL Loans and revolving lines of credit provided by some banks. There will be a credit test for these loans though, so depending on who is taking the loan, either you or your child will need to have a good credit score in order to qualify.
You can also look at Subsidized Federal Direct Student Loans and the Federal Stafford Loan Program. These are federally subsidized loans designed for families who can show a demonstrated need and come with a number of attractive benefits: in particular, the government agrees to pay the interest on the loan while the student is still in school so that payments only really become due when the child has graduated and is earning a graduate’s salary. The loans are also available in a non-subsidized package in which interest begins building as soon as the loan is taken out.
One of the best methods is to use a special funding concept that I’ve developed. This is particularly good for higher income, higher net worth families who want pay their college costs on a “tax-favored” basis. If you’d like to find out more about this special college funding plan, please call my office.
In Part three we cover the 2 remaining strategies.