The cost of college is on the rise and finding the money to save for college can be a challenge in an uncertain economic environment. We constantly hear from parents and students wondering the best way to save for college.
If you have time to save, consider these options:
1. Save tax-free with a Coverdell Education Savings Account. This investment account allows you to grow money tax-deferred and proceeds to be withdrawn tax free for qualified education expenses at a qualified institution.
2. Another way to save is with a Certificate of Deposit (CD) which earns higher interest than a savings account.
If you have run out of time and you need solutions to help pay for college soon, consider these options:
1. Free money is always the best option. So apply for as many scholarships and school grants as you can. College Scholarships is a good website that gathers available scholarships and grants opportunities for you to view all in one place along with helpful application tips.
2. Next, consider a government loan based upon you financial need such as a Stafford Loan. To determine your need, fill out a Free Application for Federal Student Aid (FAFSA). The worksheet will take into account your estimated college expenses and any financial aid and scholarships you will receive. The Student Aid Report you receive back will tell you how much your family is expected to contribute toward college expenses. The difference between that and the cost of attending college is the amount you may be able to borrow.
3. Once you have exhausted the resources available through scholarships, grants and federal aid, you may still find that you still have a gap to fill in order to cover all the expenses of college—room and board, books, tuition etc. This is when you should consider a Private Student Loan. A Private Student Loan can help cover college expenses when other aid falls short. Learn more about BECU Private Student loans.
To find a plan that works for you visit savingforcollege.com.