College education sets a child up for a better financial future and expands their access to opportunities by connecting them to mentors, advisors, and a network of colleagues. As a parent of a soon-to-be college student, you already know this and are committed to ensuring your child attends college when the time comes.
However, with the rising cost of college education, paying for your child’s tuition can be challenging. Recent statistics show that, from 2008 to 2018, tuition at four-year public colleges across the country increased by 37 percent. And, as more people seek out higher education and states continue to invest less in higher education funding, tuition costs are not dropping anytime soon.
While this might be some depressing news, finding a way to finance your child’s college education is still worth the cost. Here are five ways you can go about it.
Help Find Scholarship and Grant Opportunities
Scholarships and grants are kinds of financial aid given to students to help them pay for college. The good thing is that you’re not required to pay back a grant or scholarship. You should, however, know that most scholarships and grants are awarded based on proven academic ability, financial need, or both.
With an estimated $46 billion available in scholarships and grants from both public and private organizations, you can take the time to research and apply for those your child might be eligible for. The College Board and FastWeb.Com are good places to start your search for private scholarships.
Many colleges and universities across the country offer scholarships and grants to their students, so be sure to check with the relevant office for guidance on how to apply. You should also check with your company for any programs that help employees’ children with their college education costs.
Appeal Financial Aid for More Money
While the cost of college attendance can be overwhelming, student financial aid can make it more affordable. While some students are able to get enough college financial aid to pay for full college tuition, most students are usually left with a gap of unmet needs.
The good news is that you can always appeal for additional aid if the award is less than you hoped. Your ability to pay for your child’s college may have changed since you submitted your first application. Or you think the school didn’t pay attention to certain aspects of your financial aid application when deciding the award amount.
Whatever your reasons, simply write and submit a financial aid appeal letter to the college’s financial aid office. Make sure you’re clear about your circumstances and the specific reasons for appealing for more money. If possible, provide supporting documentation.
Research Alternative Borrowing Methods
If you haven’t saved enough money in advance, and don’t want your child to struggle with student loan debt, looking into alternative borrowing methods can make financial sense. One of the options you can consider is tapping your home equity.
If you’re a homeowner with good standing on your mortgage, you might be eligible to take out a home equity line of credit, which you can use to fund your child’s tuition costs and other college-related expenses. If you’re a homeowner age 62 and older and have paid off your mortgage or have considerable equity in your home, you might consider taking out a reverse mortgage to bridge the gap in paying for tuition costs (learn more about how reverse mortgages work here: https://reverse.mortgage/how-does-it-work However, as with all types of debt, you need to understand the benefits and risks of tapping your home equity to finance your child’s education.
Consider Private Student Loans
Even if you’ve tapped into your home equity and your child has been awarded a grant or scholarship, and they’ve taken out a federal student loan, there still might be some deficit on your child’s college attendance costs. That’s when you might consider private student loans to help cover the cost of college.
Keep in mind that private student loans are offered by institutions in the private sector and are, therefore, not backed by the government. They can provide you with the much-needed cash for your child’s college tuition. However, it’s important that you take the time to read each lender’s set of terms, rates, and eligibility requirements before applying for a private student loan. Since these financial aid options are credit-based, you need to have good credit and income in order to qualify.
Create a GoFundMe Page
With over 100,000 education fundraisers every year and more than $70 million raised per year, GoFundMe has grown to become a leader in college tuition fundraising. Crowdfunding can be a great way to bridge the financial gap in your child’s college education. With a GoFundMe, you can ask your colleagues, friends, and family to invest in your child’s future by giving small donations of any amount.
So go ahead and create a GoFundMe page and reach out to your social network for donations. Make sure you’re clear and specific about your exact needs and how much your child’s tuition costs. It’s important that you create a compelling story that resonates with not just your social network but every other person who may come across it. Unlike student loans and other alternative borrowing methods, you won’t be required to pay back the money you raise on GoFundMe.
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