Wednesday 22 May 2013

Finding funds for your college degree

By George Dodson


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. If one is planning to have a decent and comfortable life, higher education is pretty much a requirement.

The trend these days is to look for avenues of higher education after completion of schooling in most of the places in the US. 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 earnings of those with a bachelor degree are approximately 70% higher than the earnings of anyone with just a high school education. Those qualified with two year diplomas even get much more than high school qualifiers. Those years are a small investment compared to a child's life time earning potential.

The problem is that the university education is very costly and whether you will be able to afford to afford it for your child. But then, how can you afford to not send them? Ideally, an education fund should be started before your children are even born. Lets take a look at how much money we're talking about.

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. Most private universities charge the same for both in state and out of state students.

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. You may get some relief with scholarships, but that would be only a fraction of the bill.

A large portion of that amount is for room and board. Staying at your own home and doing higher studies would save you a good amount. Next comes the money required for tuition and other fees, which is continuously increasing over the years. Books, supplies and transportation account for the rest. There are ways to save on those with sales, used books and public transportation.

The costs also depend to a considerable extend on the lifestyle of the student and the locality where he or she stays. If the child attends a school which is really far from home, transportation expenses must be factored in. With the price of gas continuing to increase, this expense could be astronomical. You may also have to cater for a computer, depending on the course, along with other expenses for food, entertainment and clothing.

Most of these costs are examples of attending a four-year university but there are also community colleges and technical schools which are usually cheaper. Some students may even find them more appealing.

It is not easy to calculate the money needed for college expenditure far in the future, but the key to this is to add an increase of 10% per year. Undertake some research yourself. 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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