If you're on your way to college, one of your biggest concerns is probably "how am I going to pay for all of this?" Debt is a huge problem for college students these days, especially those who are attending private institutions, where person debt can easily reach over $100,000. College financial aid is a tricky business, since over the course of the usual four years of someone's college career a lot of money is going out but very little is coming back in. College financial aid offices can sometimes help students along, but if you're already in college when you start thinking about how you're going to pay for it you're already behind.
Realistically as part of your investment plan you must ask yourself how many scholarships can you gain? Scholarships are the best kind of money in that they are FREE! No repayments means you would be crazy not to put lots of effort into gaining all the scholarships you can. Colleges tend to provide money on two bases. Firstly money according to your needs which is directly related to your parents income and how many of your brothers and sisters will need investment money too. Your investment plan needs to answer two questions here. Will your parents contribute financially (all colleges assume they will)? Will you repay them or is it free money?
The second grant type is that which is awarded on what you may have achieved previously in your education and is given for academic, sporting or other excellence. It is more likely that you will be able to try for this type of scholarships if you plan to go to a private school as these types of establishments are more likely to have wealthy connections, old scholars and similar who set up these grants and which bear their name. The sums involved can be significant and may help you considerably with your yearly fees
Also, don't be afraid to look for college financial aid in the form of scholarships in odd places either. Look around your hometown for different community organizations who offer scholarships like the Knights of Columbus or the Humane Society. Though these sorts of community organizations may not be able to contribute thousands upon thousands of dollars in scholarships, every little bit helps, especially when it doesn't have to be repaid.
Any savings you have should be used only when all other monies have been put into your education. Why? Well because they continue to earn interest of course. But surely the time will come when you need to take a loan. First port of call has to be the Federal Application for Student Aid (FAFSA). There you will find out which loans you qualify for and you can then work out a repayment plan. A good tip when doing investment planning is to estimate your future income, then reduce it by 20%. Then estimate your expenditure and increase it by 20%. This will ensure that your expectations are never high to cause anxiety when not met.
Realistically as part of your investment plan you must ask yourself how many scholarships can you gain? Scholarships are the best kind of money in that they are FREE! No repayments means you would be crazy not to put lots of effort into gaining all the scholarships you can. Colleges tend to provide money on two bases. Firstly money according to your needs which is directly related to your parents income and how many of your brothers and sisters will need investment money too. Your investment plan needs to answer two questions here. Will your parents contribute financially (all colleges assume they will)? Will you repay them or is it free money?
The second grant type is that which is awarded on what you may have achieved previously in your education and is given for academic, sporting or other excellence. It is more likely that you will be able to try for this type of scholarships if you plan to go to a private school as these types of establishments are more likely to have wealthy connections, old scholars and similar who set up these grants and which bear their name. The sums involved can be significant and may help you considerably with your yearly fees
Also, don't be afraid to look for college financial aid in the form of scholarships in odd places either. Look around your hometown for different community organizations who offer scholarships like the Knights of Columbus or the Humane Society. Though these sorts of community organizations may not be able to contribute thousands upon thousands of dollars in scholarships, every little bit helps, especially when it doesn't have to be repaid.
Any savings you have should be used only when all other monies have been put into your education. Why? Well because they continue to earn interest of course. But surely the time will come when you need to take a loan. First port of call has to be the Federal Application for Student Aid (FAFSA). There you will find out which loans you qualify for and you can then work out a repayment plan. A good tip when doing investment planning is to estimate your future income, then reduce it by 20%. Then estimate your expenditure and increase it by 20%. This will ensure that your expectations are never high to cause anxiety when not met.
About the Author:
Jimmy Johnson is an accomplished author. To learn more about Loan Calculators visit Money Talks for current articles and discussions.
0 comments:
Post a Comment