How To Look For College Education FundingHow can a high school graduate look for his college education funding? In the US, college was not always the panacea for success it is today, and most colleges were small and private, earmarked for a limited number of people and targeted to fulfill professional roles as doctors, lawyers or religious ministers. Today, because of the technological advancements and an increasingly competitive labor market, college is necessary for a person to “make it” in the big, bad world. Twenty-nine percent of the young adult US population completed a bachelor’s degree in 2002. In consequence there have been large public universities established for every possible career for students from all kinds of backgrounds. The biggest problem for potential college students is how to look for college education funding. On average, the four-year public college education cost is about $ 40,000 and a private college can cost $ 80,000. For many families, it becomes imperative to prepare ahead for this burden, especially if there is more than one college student in the family. For in-house college education funding, a child of one will require the parents to put aside $434 a month for 17 years for a private education; at 10, it rises to $876 a month. Similar to this is the option to pre-pay tuition, a facility available in some states where the university allows parents to pay the tuition in installments before the child goes to college. However, it does limit the child to that particular university, a problem if he chooses another college. A student loan may also be an option, as well as tapping into the 401(k) plan. Either option has its advantages and disadvantages. Student loans are usually given at special rates lower than regular loans, but repayment may be a problem for the recent graduate. Using the retirement fund is assured, but there are tax considerations as well as a potential problem come retirement. Financial aid is available in the federal, state and private levels. Some universities even offer in-house financial aid to encourage matriculation. The best way to explore this type of college funding is to do research by conferring with high school counselors, the university aid program, the Internet and the local and state-based foundations. Some socio-civic organizations have private endowments for certain populations based on ethnicity or religious affiliation. For federal aid, information is available through the Department of Education. The first step is the completion of the Free Application for Federal Student Aid (FAFSA). This can be accomplished online through FAFSA on the Web (www.fafsa.ed.gov/). State sponsored aid, the Federal Student Aid Information Center (FSAIC) will have information about the state education agency. Another way is to search for scholarships on the Internet but it would be wise to stick to free sites, because many scholarship search sites that charge a fee are scams, out to do outright fraud or identity theft. For legitimate private scholarship search companies, the fee should come with a money-back guarantee in case no scholarship is awarded. Ensure that refund policies are in writing and come with reasonable conditions. Most financial aid and scholarships are not enough to cover all expenses for college. The child may assist by working part time, and a combination of several scholarships may add up to the needed figures. The recommended way of how to look for college education funding is that it should not be left up to the last minute. Whether saving up, prepaying, applying for federal, state or private scholarships or any combination of the preceding options, it should be done ahead of time. |