Saving for College – Is That the Best Bet?
By Kendell Shaffer
How best to spend money you have allocated to education? Private school? Tutors? Test prep? College fund? Do you take family vacations to broaden your child’s worldview? Do they do summer enrichment camps? Seeds of Peace? There is no one answer. It’s a gamble really.
Suppose you put away money in a 529 account and there is a family emergency, can you take out that money without penalty?
What if your child winds up going to an in-state school and you don’t qualify for financial aid? You might wind up paying more than a private school with a good endowment.
I am finding the Net Price calculator helpful in breaking down college prices. There is one on the website of each college and university. After you plug in your basic household income figures, the college will estimate how much they expect you to pay. That figure is broken down into three separate categories: parent contribution, student work-study, and student loan. These estimates don’t include merit money.
The amount of student loan they expected students to take out is roughly between $3,000 – $5,500 freshman year.
I was relieved when I read the figure. I don’t feel it will put students in too much debt after graduation. It might even be a healthy amount to pay off. I paid off my college loan after graduation every month and it was a real motivation for me to stay employed. I also did work/study when I was in college and felt it was a good way to gain job experience, make pocket money and purchase textbooks.
There are many scholarships beyond merit, but they take time to find. Fastweb.com is a website that guides students towards scholarships. The students are asked details about themselves, their interests and academic strengths. Then a list of potential scholarship matches is calculated. The scholarships range from $1,000 to $20,000. These scholarships in most cases can be applied to any college the student attends. The scholarships are very broad from corporate scholarships offered by Coca-Cola to regional and local scholarships. My favorite being The National Rice Month Scholarship, where students who live in states that produce rice can submit a 500-word essay about how rice has affected their lives.
I receive daily emails from fastweb.com with hand-picked scholarships that my daughter might qualify for. If the student has time, they can fill out multiple scholarship applications every day. Most involve writing short essays. At this point with college applications due in January as well as keeping up with senior year academics, there is not much time for these additional applications. So far, Sydney has just applied for one $1000 scholarship. Hopefully, after the new year and all the applications are in, she will apply for more.
I’m betting we’ll find a college that is not only a good fit for our daughter academically and socially, but a good fit for our family financially.