GoEnnounce is an educational achievement
and fundraising social platform. To give you some long-term practical advice on soaring tuition
costs, college saving expert, Melissa Davis, Co-founder of GoEnnounce has some
quick tips:
5 TIPS – #HowToPayMyTuition:
1. Depending on the
state and type of account there are tax benefits to parents and contributors of
specific types of college savings accounts such as 529 plans. Upromise, the
college savings rewards service offered by Sallie Mae offers lots
of great options.
2. Check out
what’s available in your state and your college savings benefits as a resident. For example, Florida offers Florida
Prepaid, which allows parents to set up plans to prepay and lock
in Florida state college and university tuition rates at the time the account
is created.
3. Whether it’s an
official education based savings account, or personal, it’s less expensive to
save for college than borrow.
Set aside chunks of
paychecks monthly. Whether it’s in advance or at the time your student is in
school, you're setting aside a portion of your income to pay for college.
When you save, the money
earns interest, but when you borrow you're paying the interest. Paying for
college before your child matriculates definitely costs much less than paying
for college afterward.
Saving $200 a month for
ten years at 7% interest would yield $34,818.89. Borrowing the same amount at
6.8% interest with a ten-year term would require payments of $400.70 a month.
4. Start the
scholarship process early with your children. Students don’t have to wait until
their senior year to win all scholarships. For example GoEnnounce
offers a monthly scholarship, students can be awarded as early as their
freshman of H.S.
5. When thinking about
Financial Aid understand how you and your child’s assets and income count
towards EFC (Expected Family Contribution). To see how EFC is determined click here. It’s
important to remember the types of savings accounts you set up for your child
can affect the EFC at the time you apply your students applies for Financial
Aid.
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