Financial Planning For Parents Of College Students

Getting in to college.

Financial planning for parents of college students.

Continue reading below. As the student loan debt crisis shows no signs of abating financial aid can be an important planning tool for families planning on sending their children off to college. Most full time students at four year colleges get financial aid to help them pay for college. The sticker price of a specific college is usually higher than what most students would actually pay thanks to financial aid.

Student loans come at a high cost. In other words many parents take distributions or loans from their company s 401k or another retirement plan usually to avoid taking out student loans. It s important to understand that student loans are expensive to pay back and the unfortunate fact is most graduates struggle to pay off their student loan debts. College is an exciting and challenging undertaking for most students.

To add insult to injury many parents also fail to continue. Planning for college expenses is one of the biggest financial projects that a family can undertake. Four years of college can cost tens of thousands of dollars the average annual cost tuition plus room and board at private u s. Financial aid and student discounts.

The process also requires self reflection and spending time looking at public and private colleges online learning and other forms of higher education that you may not have considered. Moving away from mom and dad living on your own or with a roommate making decisions for yourself and having to manage your own finances are just a few of the roadblocks you will be facing. College planning for high school students involves much more than filling out forms taking standardized tests and asking teachers for recommendation letters. The second most damaging college planning mistake many parents make is using their existing retirement funds to pay for college.

The college application process. Exploring majors and careers. High school focus areas. Having a plan in place beforehand and sticking to that plan as closely as possible can help to ensure that you survive the transition.

A website for parents guardians relatives and other adults helping students plan for college. Can your child afford to go to college. 10 ways parents should plan for college financially around 40 percent of families say they have a plan for paying for college a recent survey found. The answer is yes but you need to carefully plan together how to pay for it.

As you head into college it may be tempting to borrow extra money to pad. Support for younger students.