The Facts on Paying for College

Everyone knows how important a college education is, but paying for it is another matter. With college costs rising much faster than overall inflation every year, it is no wonder so many parents are wondering how they will pay for their children’s education.

When it comes to paying for college, there are a number of myths and misconceptions that can make the process that much more difficult. One of the most persistent of these misconceptions is that only low income families are eligible for financial assistance. The truth is, with college costs spiraling out of reach for even middle class earners, financial assistance is available to a wide variety of earners, not just low income families.

In the world of higher education, financial assistance is available to all. It is important for parents to understand the true definition of need based financial assistance. Families must understand the various financial aid packages available to help reduce the cost of a college education.

Another misconception has to do with the availability of the various scholarships. While there certainly are a number of scholarships available, the truth is they are very difficult to get, and no parent can afford to lay their hopes for a quality college education on scholarships alone.

It is vital for all parents to start saving for the education of their children as early as possible. The longer your time horizon, the more aggressive you can afford to be with your investments, and a more aggressive investment plan is more likely to result in a bigger nest egg for college expenses.

With college costs rising so fast, it is likely to take a combination of loans, grants, financial aid and perhaps even a scholarship, to pay for those rising costs. There are a number of government programs and tax breaks designed to help parents save for college, and taking advantage of them makes a lot of sense for those parents who are eligible for help.

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