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5 Ways to Fund Your Child's College Education

5 Ways to Fund Your Child's College Education

A degree-level education is probably the most expensive single cost in bringing up children today. Unless parents take action early the chances of their children graduating without substantial debt are minimal - that's if they can afford to go to college at all.

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Did you know that the cost of a 4-year degree program is around 20,000 dollars per year?

The cost of a college education is probably the most expensive item in bringing up children today. When you take into account tuition fees, exam fees, living expenses, accommodation, books, and computers it's not surprising that the average cost of college education is over $20,000 per year and that's before the social side of college life.

Today we live in a world where only the best educated and most prepared can succeed. The Job market is probably the most crucial and competitive element of our society and having a college education and degree goes a long way towards succeeding in it.

When our children are ready to enter the world of work it will be even more difficult and a college education will be essential to succeed. Here are 5 ways to fund your child's college education.


1. The usual method of parental funding of college education is out of current income, that is out of your weekly or monthly salary.


Whilst this is the most common method of funding college education it is one that only the very rich or highly paid can afford to do with ease. Even if there are 2 salaries most families find it difficult and will require sacrifices, even more so if you have more than 1 child. At best most parents can only afford to contribute part of the costs of college education out of their current income. Additional sources of income will be required.

2. Your child can work his or her way through college.

Many students have to work whilst studying but many find the experience of juggling a job, lectures and a social life very difficult. Often the result is that students drop out of college education, fail their exams or don't do as well as they could.


3. Your child may have the opportunity to take out student loans to fund their college education.


Today the vast majority of students are forced to take out student loans to fund all or part of their college education. Usually, to subsidize parental contributions, student loans are the most common way of students funding their own college education. Many students however, leave college with substantial debt and even with interest rates at historically low levels today's students can expect to have to pay substantial monthly repayments for many years.

4. Your child may obtain a scholarship or be entitled to grants from either federal or local funds towards the cost of their college education.

There are many sources of student scholarships or grants and with a bit of research most students today can find some grant funding. These sources however cannot be guaranteed for the future. Whilst scholarships and grants do not have to be repaid and as such are preferable to loans they are not guaranteed or predictable and therefore relying on them for our children is a risk.

5. Take out an education savings plan to fund college education.

An education savings plan is a regular saving plan into which you and your children can contribute. The plans are administered by colleges or state authorities and can be taken out for any child including a newborn babies. Because of the effects of long term compound interest the earlier you take out your plan the easier it will be and the lower your contributions will be. Because the funds are built up prior to going to college students do not have to rely on scholarships, grants or loans and they can concentrate on their studies.


There are a number of options to fund your child's college education but the only way funds can be guaranteed is by you taking out an education savings plan. With the education savings plan you decide what you can invest and your child can also contribute to his or her college education. With luck scholarships and grants will still be available as will loans to top up if necessary. If your child does not go to college the fund can be cashed in.

Taking out an education savings plan early will give your child the real opportunity of a college education and the best prospects for a job when they leave college.

One of the most stressful things about attending college is figuring out how to afford it.  Paying for college doesn’t have to be impossible and students don’t have to be wealthy in order to get a quality education.  There are a number of ways that almost anyone can afford to pursue the career of their dreams with the education they deserve.


Many traditional colleges and universities offer a convenient payment plan, which can be divided up into 10-12 months.  After determining the entire yearly cost, that figure would be divided by the number of monthly payments and paid at the college’s billing office.  Payments are usually determined from one year to the next and students must finish paying for one year of college before entering into a payment arrangement for the next.  An example would be a college that would cost $12,000.00 per year in courses, meals and living on campus.  In this scenario, many students can pay $1,000.00 per months for one year.  For many families, a payment plan is much easier than trying to come up with a lump sum payment upfront.


Every year, many students qualify for federal student loans.  Applications and information can be obtained at a high school guidance counselor’s office and/or the college of interest’s billing office.  Applications for student loans are accepted each year and are generally required to be submitted at, or near, each new year.  In order to be considered, student’s must be willing and able to provide documented income for themselves and their family so that their loan application can be properly assessed.


Local businesses, organizations and even colleges often provide scholarships to students who they believe will excel at college studies.  These scholarships are usually available to high school seniors and are based on a number of factors, including grades, participation in school activities, employment and a personal interview.  In order to be considered for a scholarship, students must apply by obtaining an application at their high school guidance counselor’s office or from the organization granting the scholarship.


For students who are not eligible for the above options, but still want to attend college, there is an alternate option that will gradually help them to work toward their degree.  College courses are offered at a certain cost, which is calculated on a credit hour basis.  Many colleges allow students to enroll in several classes without becoming a full-time student and being required to pay the full tuition.  These students can often pay as they go, which means they only pay for the course(s) they are taking at the time and this will be a much more affordable way to pay for college.  It will take longer to obtain a degree, but anything worth having is worth waiting for.


Anyone who wants extra cash to pay for college may find that a part-time job will help, along with selling items at online auction sites, such as eBay and Yahoo.  Many students have financed their college tuition through these auction sites without taking too much time away from their studies.

10 reasons to go to college

Life is full of options and choices. The choices we make shape our future. As we stand at the cross roads after high school we must have the right vision to make the decision to go to college.

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Life is full of options and choices. The choices we make shape our future. As we stand at the cross roads after high school we must have the right vision to make the decision to go to college.

1. A college education secures our future. The number of employment opportunities is greater and statistics reveal that most leaders are college grads.

2. If you have a college education you will make more money which in turn will enable you to have a better lifestyle. If a high school graduate earns US$ 34,303 annually, a college graduate will earn US$ 56,334, and a person with a professional qualification will net at least US$ 99,411.

3. It is not just earnings. A college education makes you a rounded person. It shapes your communication skills, expands your knowledge base, makes you methodical and organized, and exposes you to a whole new world of learning.

4. People with a college education have better value systems and are healthier. They are able to guide their family positively.

5. College can help you qualify in fields you are interested in. So if you are an innovator, inventor, or healer, or artist you can train in the specific field and qualify.

6. According to experts, college graduates are self confident, have greater knowledge of governance, are less likely to become criminals, are emotionally and financially secure, make better partners and parents, and have a deeper understanding of  human nature.

7. College instills a deep sense of right and wrong and is they very essence of a democratic world. 

8. Education opens the doors to many things like multiple jobs, career choices, the chance to further education at any point in life, and the option of teaching others what you have learnt. Be it a child, family member, or a poor person you meet. 

9.    College education is an investment in you that yields much more than Wall Street investments. 

10. College educated citizens will ensure the continuing success of the “American Dream.” The ability to see the right path and work for peace and prosperity

Students according to Jose Marti a patriot are the very ra. mparts of a nation and the strongest advocates of freedom. Education creates a conscience and as a result a better human being. College education eventually becomes a legacy for future generations. Most succeeding generations of college educated people go to college themselves. The value of a good education becomes ingrained in their genes. Huge stones can be moved with muscle power but it is brain power that tells you how to move it and what can be done with it.