Plan for college ahead of time to save you money.
1. Start Now
Saving up for college isn’t so simple. The easiest way to save for college is by starting now. The sooner you invest in an education, the more you will have in the future. Try saving $50-$200 a month until it’s time for your child to go off to school.
2. Don’t save for all 4 years
Scholarships, grants, and loans are available to students. It is difficult to save up money, but always remember that there are other aids available to help you. Always apply for financial aid no matter what your circumstance is. On average, around 60% of students receive some financial aid from the school and/or government.
3. Student loans
Taking out a student loan can be a stressful process because of the interest rate attached. Student loans have been in the news lately mainly because of these increased rates. Congress is working to do something about this issue. Only take out student loans if they are absolutely necessary and keep track of how much you borrow each year. The amount adds up without you realizing it.
4. 529 Plan
You might not have heard of this, but a 529 plan is an education savings plan designed to help families set aside money for future college costs. The main advantage is that the savings are not subject to federal and state tax as long as the money is used toward the educational expenses of the beneficiary.
The recommendations contained in this article are designed for informational purposes only. Essential Lending DBA Wise Loan does not guarantee the accuracy of the information provided in this article; is not responsible for any errors, omissions, or misrepresentations; and is not responsible for the consequences of any decisions or actions taken as a result of the information provided above.
