Tips For Lowering Education Costs

When you're confronted with the cost of a college education today, not to mention what the cost will be ten years or more from now, we can almost hear that gulp sound coming from your throat. Hopefully, if you carefully plot your investment course for this goal and perhaps even receive financial aid of some type, you can do it. That being said, we'd like to offer some general tips that, combined with your investments for education, can lessen the financial burden of paying for college.

Financial aid. Don't assume you aren't eligible for any financial aid. Take the time to work through the numbers. Financial aid includes outright grants, as well as student and parent loans at favorable rates and repayment schedules. Sources for aid include the federal government, state and local governments, and even the college itself.

Scholarships. Super athletes and valedictorians aren't the only students that receive scholarships. While these are the most traditional routes, scholarships can be based on the particular school, a specific field of study or career path, or even ethnic background. There are numerous excellent sources available on the Internet and at the public or college library. Guidance counselors both at the high school and college level are sure to be a real help as well. One excellent site to check out for general information on scholarships is the not-for-profit college board. We'd also like to stress that when it comes to scholarships, those who hesitate miss out. There is a limit to what's available and, if possible, two years before starting college is not too early to start looking.

Tax breaks. Depending on how you pay for college, you may be eligible for tax deductions and credits. Aside from the favorable tax treatment given to Coverdell Education Savings Accounts, state savings plans, and education savings bonds, you may be entitled to deductions and/or credits for tuition, fees, costs and student loan interest.

Employer-provided education assistance.. Employers sometimes offer tuition assistance for undergraduate as well as graduate courses. Sometimes the classes taken don't even need to be work-related. Many miss out on this employee benefit because they're not aware of it or think they don't qualify. Don't be one of them!

Community college. No matter how you slice it, you may find that the cost of a private four-year university is beyond your reach. One option that college students have been utilizing for years is to attend a community college for two years and then transfer to a four-year school. You save substantially on tuition since community colleges are almost always the least costly college alternative and you can take the courses required for all students regardless of their major, i.e., math, science, English, humanities, foreign languages, etc. If the student attends a local community college and lives at home, dorm expenses are wiped out too. Some community colleges and four-year universities even have a prearranged transfer policy for students and credits to make the transition from one to the other smooth sailing.

Earning college credits during high school. Some high schools have programs for students with the academic ability to take college courses and earn college credits while they are still in high school. This can work out really well for eligible students both in terms of saving tuition money and getting a feel for college work and getting requisite courses out the way.

Post-college employment. In exchange for working for a specified period of time in a specified place when they finish college, students can have their loans forgiven and/or college expenses paid for. For example, due to the teacher shortage, students that agree to teach in a certain location for a certain time period may be eligible to have their tuition paid by the government. You can get more information on these types of programs from college advisors in the specific field you're interested in.

Armed forces. The United States military offers extremely attractive education benefits ranging from partial to full payment of undergraduate as well as graduate expenses for those that serve their country. You can check out the U.S. military career website, military.com, and the Veterans Benefits Administration website for information on the different careers in the military and the educational benefits offered.

Also, states may provide additional educational benefits to veterans. Illinois, for example, provides 120 free credit hours to an Illinois state college, which can be used for graduate or undergraduate courses, for veterans who live in Illinois before and after their military service. You can find information on the state you're interested in at the VA Education Service website.

Affinity programs. A company called Upromise turns a percentage of purchases you make into an investment for education. The basics of the program are as follows: You sign up with the program and whenever you purchase services and goods from merchants participating in the program, you get awarded points. These points are then translated into money that is invested in a state-sponsored college savings plan. You can invest your points for anyone. For example, you may not have children, but if you enroll in the program you can credit your points toward an account for a nephew or your best friend's child.

Currently, there is no charge to you to enroll in the program. The merchants pay fees to participate in the program. What's in it for the merchants involved? At a minimum, they're hoping you'll stay loyal to them and, at a maximum, develop new loyalties to brands associated with the program. For example, if you have to buy diapers or often shop at a toy store if you have children, the merchants are hoping you'll chose them if they are enrolled in the program.

This program can be a good way to get investing power out of money you are spending anyway, and it sure beats accumulating frequent flyer miles or points toward premiums. On the down side, the program is pretty new and fees may eventually be imposed if you want to participate. More importantly, if you find yourself sucked into buying products and services you wouldn't be ordinarily be buying because of the investment component, you would be better off taking that money and investing it directly.

To learn more about this program, including how to enroll, go to upromise.com.

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