Paying for College

-Steve

In today's society many high school students feel pressured to go to college and get their degree. But many students are not able to afford the luxury of going to college. Our new president, Donald Trump, has stated that he wants students to be able to refinance their student loans and that these universities should use more of their endowments to aid students in paying for school. However, there have been no actual proposals by President Trump.

If you are fortunate enough to be able to attend a university, Kevin McKinley, a financial adviser in Eau Claire, Wisconsin can supply you with a plan to pay for college that reduces the stress that comes with student loans. McKinley's advice is to "Save a quarter of the cost over a child's first eighteen years. Pay another quarter out of current income over the next four years. Borrow the rest, split among the family." (McKinley, Para. 5)

First, save a quarter of the cost over a child's first eighteen years. The key to be successful at this portion of the plan is to assess how much you expect to spend on college and how much you would need to save monthly and at what interest rate. You can see McKinley's example here (Paragraph 7). Another key aspect is instead of spending money on pointless things, you could be putting that money away towards your child's future education. This is where many people go wrong and they look back wishing that they had put more money aside.

Next, spend a quarter, this step is very difficult because it doesn't allow you to spend your money as you please. Instead of going on that annual vacation, you are going to have to put that money towards the monthly college bill. Which McKinley estimates to be five hundred dollars a month in his example here (Paragraph 11).

Thirdly, the borrowing, McKinley says that this should be your last option because your debt can quickly add up because of the horrible interest rates. But if you do have to take out a loan, take out a federal loan because once your child graduates and does not have a large income, you can see if you are eligible for lower payments.

Lastly, split among the family, there are a bunch of people that are not able to put away five hundred dollars a month or even any amount for their child's education. However, this plan that McKinley has constructed is flexible, you could borrow more or save more depending on what situation you are in.
Paying for college can become even more difficult if your child is attending a private school, or perhaps you have two children in college. This is a good opportunity to see what financial aid that you are eligible for and what possible scholarships and grants you may receive. Many times families are given the difficult choice of having their child attend a very prestigious school or a more mediocre but less expensive school. 

This decision can be one of the most important decisions of you life and it is far from an easy one. So you want to make sure that you take every aspect into consideration when deciding what university to attend. But when it comes down to saving money for college, save what you can and build on it.

Sources: 
Lieber, Ron. "How to Pay for College with Less Stress." The New York Times. N.p., 23 Sept. 2016. Web. 2 Feb. 2017.
Castillo, Andrea. "Families Still Finding Ways to Pay for College." SalesHQ. N.p., n.d. Web. 12 Apr. 2017.