How to Pay for College

College has been, and will always be valuable.  The experience has value not only in its academics, but also in its ability to socially develop young individuals who are away from home for the first time.  The excitement of independence sometimes draws a curtain over the ever increasing, and enormous cost to attend college.  Many times young minds cannot differentiate $30,000 from $40,000, or a $10,000 a year student loan from a $15,000 a year student loan, and what that debt looks like over time.

Parents have recently wondered if saving for college has actually hurt their chances at financial aid.  While savings certainly factors into the Expected Family Contribution, there is no replacement for money readily available when it is time to pay for a college education.  Many families are struggling and searching for this funding when time is not on their side.  When financial markets tumble, and investments, like college savings, languish, families need other sources to draw from.  Have you sat down as a family to brainstorm others?  Consider these points below as a beginning to your conversation...

-What groups do mom and dad belong to that may offer scholarships to students?
-Have I spent time on each financial aid website for my college choices, looking for scholarships that require additional paperwork?
-Can my student get a job to offset some of the extra expenses like travel, food and entertainment?
-Have I considered residency requirements for out of state colleges?

Let's put college expenses into real terms.  The cost to attend a private college can be 4.5 times higher than attending a well known private high school.  Remember when you sent your child to preschool and paid tuition for the first time?  College can cost 44 times that of preschool.

Students this year will struggle to find outside sources of money to pay for college, and so too will parents who want the best for their children.  In witnessing students take out six figure undergraduate loans, and watching parents draw down their retirement savings early, we can certainly see that college is still valuable to many.  But, starting with a simple family conversation at dinner can aid parents now, and students in the future.