Читать книгу Investing For Dummies - Eric Tyson - Страница 82

If you keep stashing away money in retirement accounts, it’s reasonable for you to wonder how you’ll actually pay for education expenses when the momentous occasion arises. Even if you have some liquid assets that can be directed to your child’s college bill, you will, in all likelihood, need to borrow some money. Only the affluent can truly afford to pay for college with cash.

One good source of money is your home’s equity. You can borrow against your home at a relatively low interest rate, and the interest is generally tax-deductible. Some company retirement plans — 401(k)s, for example — allow borrowing as well.

A plethora of financial aid programs allow you to borrow at reasonable interest rates. The Unsubsidized Stafford Loans and Parent Loans for Undergraduate Students (PLUS), for example, are available, even when your family isn’t deemed financially needy. In addition to loans, a number of grant programs are available through schools and the government as well as through independent sources.

Complete the Free Application for Federal Student Aid (FAFSA) to apply for the federal government programs. Grants available through state government programs may require a separate application. Specific colleges and other private organizations, including employers, banks, credit unions, and community groups, also offer grants and scholarships.

Many scholarships and grants don’t require any work on your part — simply apply for such financial aid through your college. However, you may need to seek out other programs as well. Check directories and databases at your local library, your kid’s school counseling department, and college financial aid offices. Also, try local organizations, churches, employers, and so on, because you have a better chance of getting scholarship money through these avenues than through countrywide scholarship and grant databases.

Your child can also work and save money for school during high school and college. In fact, if your child qualifies for financial aid, she’s generally expected to contribute a certain amount to education costs from employment (both during the school year and summer breaks) and from savings. Besides giving your gangly teen a stake in her own future, this training encourages sound personal financial management down the road. For more advice and specific strategies regarding affording and paying for higher education, please see my book Paying For College For Dummies (Wiley).