College funding options

There are a number of sources of funding a family can utilize for college. These sources were reviewed in the College Pre-Approval™ process. More specifically though, there are some options family’s might consider. These include things like:

• 529 plans – these are special education savings plans. The money in them grows tax deferred and the withdrawals are tax-free when used to pay for college expenses.
• Financial aid – this can applied for using the Free Application for Federal Student Aid.
• Grants – there are various ones available depending on a student’s circumstances. Some include PELL grants, ACG grants, and SMART grants.
• Work-study programs – these are available at different colleges and can a good source of funding
• Service for tuition – there are various organizations such as the Peace Corps and AmeriCorps can provide money for tuition in exchange for a commitment to serve after graduation.
• Scholarships – there are various scholarships for various different things such as academic scholarships, sports scholarships, and scholarships from various groups.

There are also ways to reduce the cost of college. Some of these include things like:

• Having the student live at home while going to college – while this isn’t free (a good estimated cost is $300 per month), it can be less expensive than room and board at a school.
• Community college – if a student starts a community college and then transfers to a four year college, this can great reduce the cost of an education.
• Applying to several schools – by applying to several school a student can increase their chances of getting a financial aid package that meets their needs.
• Tax credits – different tax credits may be available that can help with the cost of college.