Thus, our children want to fly away from the nest and continue their academic life in college. But with escalating costs, can we afford it? Will they have to take part-time jobs to stay afloat or can we supplement their financial needs with college loans?
These are just a few of the questions facing parents and aspiring students today. This is not surprising when you look at the facts – a 51% increase in tuition and tuition fees for four-year public colleges and a 36% increase for private four-year colleges over the past year. last decade only. This, together with the disproportionate increase in the incomes of families likely to have university-aged children, means that more and more often parents or students themselves are turning to direct loans or private university loans for acquire help.
Why do parents and students need extra help?
Each parent and family are informed of the expected financial contribution (EFC) to their child’s further education when they apply for a place. This is calculated minus any government grants and federally backed university loans that the student will get. Every family has many financial commitments, and the extra support for your child throughout college might be too much to bear if you don’t have enough savings or disposable income. But all is not lost! There are other sources of financial support.
How to fill the shortfall?
Additional financial support comes in all shapes and sizes. They normally take the form of unsubsidized federal student loans, state sponsored loans, and private sector university loans. It is the latter which has experienced the most significant growth over ten years (an increase of 745%) and represents a colossal aid of 10.5 billion dollars used to finance college education.
The available private college loans can be divided into student loans or parent loans:
o Private college loans from banks and other sources of funding.
Loans to parents
o Loans for private education from banks and other donors.
o Home equity loans to take equity out of your property. These funds can be used to pay for tuition fees.
Is it all worth it?
It’s too easy for parents and students to balk at taking out college loans to allow them to continue their education. The hard cash needed to keep them up to four years of schooling may seem impossible to muster, but they just need to realize the benefits it will bring to their child and to America. Individuals with a college education earn more than those who leave high school, they also participate more in society, and their children will also achieve higher levels of education.
The investment is worth it.