The College Financing Bear: What are My Options?

Hello Everyone,

We have had an absolutely beautiful fall here in Colorado.  Kris and I have been getting up into the mountains.  We went on a trail ride with our horses, Donzer and Ava, at the foot of Mount Herman in Monument and we went hiking on the Argentine Pass.  We were trying to hike Mount Bierstat but it turns out the road to Guanella Pass has been closed for awhile due to a rock slide.  We were able to see some beautiful Aspen’s fall colors anyway.  My teacher friends are back to school and this brings me to this month’s topic:  Financing College. 

Current Cost of College

For those parents with children already in school, this will not be news but for folks with kids planning for college in a few years here are the current stats according to the College Board’s “Trends in College Pricing.” 

4-Year Public School in State            $15,213

4-Year Public School Out of State    $26,741

4 Year Private School                       $35,636

NOTE:  Under today’s laws, you cannot use student loans (federal or private) to file bankruptcy.

Research Sources

Wow, does this get your attention.  If you have a few years to go before college, you can see what target numbers you need to be saving for now.  But, there have to be a few more options out there.  So where can you find some information?  I found 2 great websites.

1. FinAid.org is designed to answer the question, “How do I finance my child’s education?”

2. FastWeb.com is designed to answer the question, “How to pay for college.” 

The expert behind these websites is Mark Kantrowitz, a noted financial aid and college planning author.  These websites are a great place to start your research.  In fact, it would be great to sit down with your child and look at the websites together.  Regardless of your current financial situation, this is a perfect opportunity to discuss the differences in grants, scholarships and loans.  It’s another chance to go over some decisions regarding loan terms, especially interest rates and payback options.  Arming your child with some financial knowledge will only help in their future endeavors.

Starting Discussion with your Child

One more way to get the discussion going with your college-bound child is a new book that has been in the media recently.   This book is written by a current college senior, Zac Bissonette entitled, “Debt Free U, How I Paid for an Outstanding College Education without Loans, Scholarships, or Mooching off My Parents” discusses how he was able to attend college without loans or direct help from his parents.  College planning is definitely worth researching to get out ahead of the challenges.  There are a lot of considerations and the time arrives more quickly that you think it will. 

Cheers,

Tara :)