Sunday 10 February 2013

Attaining monetary requirements of college degree

By Kat Lars


Finding sources for meeting expenses on studies of their children at college level is a problem faced by the parents all over the world. The choice is now between finding a job or getting more qualified through college. To lead a life of quality and comfort having a college education degree is pretty essential.

Unlike previous decades, more than half of recent graduates in the United States engage in some type of schooling after high school. Consequently even the jobs, which had been getting filled up by those who have completed only high school education, are now asking for college graduation.

The difference in the earnings between a college educated person and a high school education is about 70% more. Even those with a two-year associate degree earn considerably more. Those years are a small investment compared to a child's life time earning potential.

No doubt, a college education is expensive and the question arises can you afford to send your child to college. But then, how can you afford to not send them? Ideally, an education fund should be started before your children are even born. Let us now see how much money would we require for this.

It's cheaper to go to a college or university in the state where you live. Non residents are required to pay higher tuition amounts than state residents, if they attend a public school. However, private universities mostly have the same fee structure for both residents and non residents

The amount required for college education would include cost on educational fees, living expenses including lodging, and other expenses. This usually would cross about twenty thousand dollars for most universities. Anyone wishing to estimate the costs for out of state students would need to add about three to five thousand more dollars to the total bill, and students wishing to go to a private school would need to double the amount. Scholarships will help with some, but not all of that bill.

A large portion of that amount is for room and board. So, if the student can eat and live at home that would be a huge savings. The next largest expense is for fees and tuition, something that is rising as fast as medical costs. Books, supplies and transportation account for the rest. You will have to find ways to reduce this by using public transport, taking advantage of discounts and sales and using second-hand books.

The costs also depend to a considerable extend on the lifestyle of the student and the locality where he or she stays. You will have to add the transportation expenditure to the budget if the child has to travel far to the school. With increasing gas prices, this expenditure can also become huge. Clothing, food and entertainment expenses must be kept into account, along with, depending on the school, a computer.

These are the usual anticipated expenses for completing a four-year degree course, but you can find technical schools and community colleges where expenses are lesser. Some students may even find them more appealing.

It's hard to estimate how much college will cost several years down the road, but you should estimate an increase of about 10% a year. Do your research. If you find that setting up a fund for future education of your child is not possible, then opt for a savings account. Better yet, check out the local 529 plan in your state which can also save you money on taxes. It is assured that your investment on studies will pay you back in a great way.




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