ClearVue Financial

View Original

Higher Education Costs!

Let face it—in today’s uber-competitive job market, more knowledge and specialized skills help you (or your dependents) stand out.

Furthering your learning and training beyond high school (even undergrad) is practically a must.

But funding higher education remains a challenge for many, and borrowing money to pay for college is common.

With higher-education costs steadily rising, with no signs of slowing down, this could bring about another area of planning for parents (and working professionals).

While it may not be easy to prepare (especially for younger individuals and families), the smallest amounts saved early on can grow substantially over time.

Besides saving up, other ways to pay for college:

  • Student Loans. Many know about these loans. In fact, in 2019 alone, 69% of the students took out student loans.

  • Financial Aid. While typically obtained in the form of loans, financial aid rarely covers all college costs. And even if you qualify on a “needs” basis, there is no assurance the college of your choice will be able to help all those in need.

  • Scholarships. These are desirable, but there is no guarantee your child will qualify for an award.

  • Personal Loans. While generally available, they could prove costly over the long run as total interest charges accrue.

  • Personal Income. Commonly used to pay out-of-pocket expenses such as books, supplies, and other fees. However, paying the current annual cost (over $10,000 for many in-state colleges and over $20,000 for out-of-state) may be unrealistic.

As part of planning services, we help our clients in the following ways:

  • Researching college choices

  • Examining current and future attendance costs

  • Exploring alternative funding methods (e.g., scholarships and grants)

  • Designing a plan to help save towards this future expense

In the end, the goal is to borrow as little as possible, funding higher education through savings and non-credit solutions. Student loans are not the worst thing, but paying with cash flow or money set aside can lighten the load.

Learn more about education savings.

Please schedule an appointment to discuss our planning options or send a message with any burning questions.

See this form in the original post