Financing a degree

<p>I know about the standard stuff - the student loan and the parent plus - but are there better options to financing a degree through those methods?</p>

<p>Choosing a college or university that you can afford to pay for out of current income.</p>

<p>Choosing a college or university that you can pay for with savings.</p>

<p>Choosing a college or university where you qualify for significant merit-based aid.</p>

<p>Happykid is at our local community college because we can afford it out of current income. Late last June (and well after the decision was made) she was awarded a full tuition and fees merit scholarship. The money we aren’t spending this year on tuition and fees is already in the bank for next year. If we don’t need it then, with a second year of savings, we will have half the full cost of a year at her target in-state public U ready should she be accepted as a transfer student. The other half of that cost would be covered by the equivalent of one year of community college expenses plus a Stafford Loan. The fourth year could be covered by a Stafford, the amount we would pay for the community college out of current income, and a parent loan. It is entirely possible for our family to get her through college with only about $20k total in debt.</p>

<p>I recently read on another blog about a student who put his undergrad on credit cards and then declared bankruptcy. Not sure how a student got all those credits cards but it is a unique way to pay for college.</p>

<p>Probably explains why student credit cards (if you can get one nowadays without your parents co-signing) come with a really low limit. You can’t get much college for $500…</p>

<p>I can tell you how some of the families I know have done it:</p>

<p>Kid goes to a lower tier school and gets a merit scholarship to attend.</p>

<p>Kid goes to community college and then transfers to a 4 year college he can attend and still live at home.</p>

<p>Kid goes to 4 year college close to home and commutes on public transportation.</p>

<p>Non working mom goes back to work.</p>

<p>Mom/Dad/both get second jobs.</p>

<p>Family cuts down on things like vacations, house maintenance, extra car, cable TV, etc. to have more of the present income stream to pay for college.</p>

<p>Students get on campus jobs and work in the summer, every summer.</p>

<p>Student gets ROTC scholarship.</p>

<p>Student serves in the military first and gets GI bill.</p>

<p>Grandma gifts money for tuition.</p>

<p>Parents take out home equity loan.</p>

<p>Lots of different things can be done–in fact, usually a family will do a combination of the things listed above.</p>