A Year of College Affordability Solutions

College Affordability Solutions is dedicated to helping families keep higher education spending within their means. It uses this website to highlight postsecondary educational cost-management strategies at the times of the year when you and/or your student are most likely to need them.

21-of-the-most-beautiful-college-campuses-in-amer-2-20243-1428837186-9_dblbigDespite those who’ll try to talk your student out of college, postsecondary education is still worthwhile even if he or she has to borrow to pay for it. But student loans increase the cost of college, so do everything possible to minimize their use.

Over the last year, we’ve covered several approaches to keeping college and college-related debt affordable. Click on any of the links below to learn more . . .

Before College

Various investment and savings programs can help you prepare for college bills. Among these are 529 plans and college savings bonds, but you should explore them all – the sooner the better.

And be sure to apply for financial for every year of college. Complete the Free Application for Federal Student Aid (FAFSA) as soon as possible after October 1 but, by all means, before your FAFSA priority deadline arrives.

Student dependency status plays a big role in who completes the FAFSA. Other family factors do, too. But it isn’t as hard to complete as you’ve heard, especially if you fulfill 5 key steps, gather all the documents you need, and get answers to your last-minute FAFSA questions before doing so.

Long before the FAFSA, your student needs to begin aggressively searching for scholarships. It’s critical to know about the when and where and the how of doing this.

Pay close attention after you file your FAFSA to make sure you handle what happens next. Then carefully assess your financial aid offers as they arrive from colleges.

But it’s not all about financial aid and scholarships. A critical factor in college affordability is for your student to enroll in a college and major that fits him or her well.

During College

Once college begins, you can help your student keep his or her expenses within reason.140815_FF_BestCollegeCard Limited spending and indebtedness is important even with today’s low college loan interest rates.

Some of the most effective strategies for minimizing student borrowing include your student getting through college in 4 years or less while carefully managing money and avoiding rip offs such as the recent “student tax” scam. A little-known but highly-effective cost-saver involves returning unneeded federal loan dollars with 4 months of disbursement.

Help your student keep college more affordable by giving him or her some holiday gifts that’ll lower his or her reduce expenses upon returning to school and by recommending he or she generate funds through seasonal employment instead of borrowing.

After College

Seven out of 10 students borrow before earning their degrees, and over 90% of their loans come from federal loan programs. Fortunately, the government has designed  post-graduation strategies to help keep educational debt manageable.

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Your student needs to understand what happens to college loans after graduation. It’s worthwhile to consider the pros and cons of student loan consolidation, an often-used tactic for reducing monthly debt payments. Equally important is knowing how your student might qualify for forgiveness on all or part of what he or she owes.

Coming in 2017

We’re taking a few weeks off for the holidays, but beginning January 4 we’ll start publishing again about plans for keeping college affordable. Here’s hoping you have the happiest of holiday seasons, and that you’ll rejoin us then!

 Find out more about College Affordability Solutions and its services at https://collegeafford.com, or by calling (512) 366-5354.

Reduce the Need to Borrow With Seasonal Student Employment

With the holidays approaching, merchants and other businesses are looking for part-time employees to help them through their busiest time of year. For college students, img_4463such jobs can turn into a great opportunity to earn money that will help reduce their reliance on loans.

Consider Bob, a first-year marketing major. Bob just landed a job at a restaurant near campus. From mid-November through mid-December he’ll wait on tables — not very glamorous, but his 14-hour per week work schedule offers sufficient flexibility to study for and pass all his final exams.

Even after FICA taxes are withheld, Bob’s going to clear $500 in wages and tips. That’ll buy his spring semester book, so he can reduce the spring loan he would have needed by $500. This will save Bob as much as img_4480$880 in the principal and interest he’ll repay after college. Imagine how much Bob will save if he also does seasonal work during his three remaining years of college!

To be sure, part-time work is not for everyone. If your student can’t manage priorities or is having academic difficulties, the end of the semester may not be the right time for him or her to take on additional responsibilities.

On the other hand, research has shown that students who work a reasonable number of hours (10 – 14) per week while enrolled average higher GPAs and graduation rates than their non-working classmates.

Bob will also boost his resume by adding workplace experience. And he’ll line up an employer who’ll serve as a reference for future job opportunities — about his ability to deal with people, understand customer needs, and other qualities marketing firms seek. These, too, are advantages of “working your way through college,” at least in part.

So talk with your student about looking into seasonal work. This can be done by visiting the school’s student employment office, inquiring with employers near campus, or both. The results could help reduce indebtedness . . . and in other ways!

College Affordability Solutions offers a wide variety of suggestions designed to help lower college student borrowing costs. Call (512) 366-5353 or email collegeafford@gmail.com if such guidance might be helpful to you.