With today’s challenging economy, one’s
plans of pursuing a college degree or further studies are often put on hold.
Others who have successfully started their college education, on the other
hand, stop attending classes in exchange for a promising job. This is a sad
reality that a man’s greatest life investment can be easily discarded due to
financial constraints.
A $15,014 per year’s worth of a four year
college degree in community college can make a high school graduate totally
forget his dreams of going into college. However, for people like you who wish
to pursue their college education, here are some options that can help you turn
your dream into a reality:
Section 529 Plans
This is a savings plan offered to parents
who wish to send their child to college. There are two options under this plan,
the prepaid tuition plan and the college savings plan.
In prepaid tuition plan, the parents
avail of a tuition plan based on current tuition fee rates. Since tuition fee
increases almost in a yearly fashion, the parents should be aware of these
changes and may expect paying higher for the plan. Should the child opt to drop
out, the parents can get a refund of their contribution.
College savings plan on the other hand
allows its plan holders to contribute a portion of the savings plan to an
investment account that is tax free. Earnings of the savings plan can be used
to finance the beneficiary’s college education. However, the individual under
this plan should take note of the associated expenses and investment options
that best cater to their financial needs.
Scholarships and Grants
In situations in which a student or his
family cannot shoulder the costs of college education or if the college savings
has limited coverage in terms of education expenses, a student can apply for
academic scholarships and federal grants. A student has to meet certain
criteria based on academic proficiency, financial need, ethnicity and gender as
specified in the terms and conditions of the scholarship or financial grant.
Scholarships are also being offered by
private organizations, local companies, schools and other non-government
organizations. The scholarship grant has to be used solely to finance one’s
college education.
Student Loans
These loans are commonly availed by
students who are pursuing further studies. In 2011, a reported amount of $1
trillion was allocated for student loan alone wherein $117 billion was borrowed
from the federal government on the said year.
There are three student loan types
offered by the government. These are the Federal Perkins Loans, Direct Stafford
Loans and Direct PLUS Loans. Federal Perkins and Direct Stafford Loans are both
offered to college and graduate students respectively whereas Direct PLUS loans
are offered only to graduate students.
