Recession Effecting College Educations

By: Corey Mutterperl

The recession has forced many people to think about how they are going to pay for their kid’s college tuition. You must use your saving strategically so as to minimize interest costs. Pulling money out of college savings plans is better than borrowing money early.  Also, more colleges are now giving money as incentives.  It is very important to apply to schools that give you the best chance of some financial relief. Make sure the child applies to safe schools that are affordable.  If you have to borrow, do it wisely as Congress has made money available for college loans.  Congress has also passed, as part of the stimulus package, a bigger tax credit to help defer the cost of college.

Many families are getting creative in how they go about paying for college.  One family did their research and found many opportunities to save.  These included a no interest installment plan, sibling discounts, early application discounts and a work co-op to help pay for tuition.  Another family used a college consultant who directed them to schools who gave out merit money.  They also applied early because they were advised that most of the money is available then.  Another family had to reconsider which schools their child would apply to.  Instead of the private schools with their enormous price tags, they chose a state school close to home at a much lower cost and saved a tremendous amount of money.

References: 

http://money.cnn.com/galleries/2009/moneymag/0903/gallery.college_funding.moneymag/index.html

http://money.cnn.com/2009/03/17/pf/college/college_tuition.moneymag/index.htm