Tips to Help You Pay for College Next Year

Dear Parent,

             If you’re the parent of a high school senior who’s bound for college—and if you have been following our advice, there’s not much more for you to do except start packing and making plans for converting his or her bedroom into your own space! However, I do have a little advice for graduating high school students who are heading off to college this fall.

Encourage Your Child To Work This Summer: The college has already made its offer of financial aid for the coming academic year. If your child earns $2,900 or less this year, those earnings will not affect the financial aid offer or your Expected Family Contribution for next year’s financial aid. Best of all, that is money your child can certainly use to help with the high costs of college…saving takes discipline, but what better time to start those good savings habits!

Have Your Child Search For An On-Campus (Or Near-Campus) Job: If your child plans to work part-time while attending college, now is the best time for he/she to start looking for that position. Looking now will give your child the advantage over all the other students who will wait until the school year starts to begin looking for a job. This early search is a good idea even if the college is some distance away; it will probably be worth the time and money for your child to make a special trip now and start job hunting. The best planning is still to do “work study” first, and then supplement their income needs with a second job if they can handle the schedule without having their grades slide!

Consider Last-Minute Strategies for Reducing Your EFC: If your Expected Family Contribution (EFC) seems to be a bit of stretch (or bigger than Mount Everest), don’t panic. You may still have some options.  If decisions have not been finalized about your EFC funding options, we’re available by appointment to review your options in person. 

Decide How To Provide Spending Money To Your Child: You should know, by now, how and when you will be paying for tuition, room and board, and other major college costs. But don’t forget that your child will need spending money throughout the school year. Some parents give their child one of their credit cards to use. If you choose this option, please plan carefully and give your child very firm guidelines. Decide how much he/she can charge on the card and under what circumstances. For example, can the card be used for meals, clothing and entertainment, or just for emergencies? Other parameters to consider: How will the child notify you of charges (so you aren’t shocked when you get the monthly bill)?  What dollar limits will you set on the amount your child can charge?

If you don’t want to give your child a credit card but are concerned about financial emergencies that he or she may face while away at school, don’t assume that giving your child a credit card is the only solution for such situations. In my opinion, an ATM Card is a better option. They contact you when they need money, and you determine how much to give them and when. Check with the college and see what bank’s ATM is on campus, and then use that bank for your account.

These are some options for consideration.   Each family should determine, in advance, what will work best for them. 

Until next month…Best Wishes!

Randy Stoltz, President