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Paying for College when you’re finishing High SchoolBy Glenda K. Moehlenpah Financing college is
one of the most daunting aspects of attending, however it’s not so bad if
you’re willing to plan. In this
series of articles, we will explore ways to finance college at various stages of
your life – from babyhood to post-graduation. Graduation is staring you in the face (even if it’s still a year or two off), and you don’t have any money saved for college. Just what are you going to do? Review
Of course you can still use most of the savings methods mentioned in Paying for College as a Baby, such as UPromise and BabyMint accounts, Coverdell Education Savings Accounts, UGMAs and 529 plans. Naturally, with less time available, you won’t be able to save as much. Plus, you still may have a chance to implement some of the strategies mentioned in Paying for College when you’re starting High School, such as advanced placement examinations, and applying for scholarships. But what are the other options? The SAT
Have you taken the Scholastic Achievement Test (SAT)?
Make every effort to score as well as you can—your score not only
determines the colleges that may accept you, it may also have a direct impact on
your ability to obtain scholarships. So
don’t do as I did; that is, don’t
go on a hayride the night before, and wake up bleary-eyed from the pollen and
lack of sleep! Scholarships Revisited
Now is the time to get serious about applying for national scholarships. Apply early—but only to those for which you qualify. Otherwise you are wasting your time and electricity or paper. (You may also want to check on local scholarships, as there may be some that are limited to graduates of your particular high school.) You should also complete the Free Application for Federal Student Aid (FSFSA) on-line at www.fafsa.ed.gov even if you have no plans to apply for federal aid because many scholarships use this form as well as their own forms. Financial Aid
Kim Dudley provided an excellent and detailed guide to the process of obtaining Financial Aid in The Necessary World of Financial Aid. So I’ll just summarize a few points.
Plan to Avoid Credit Cards
If you must borrow, use student loans. At least the interest on student loans may be tax deductible, but the interest on credit cards is not tax-deductible. (And the interest rates are in the stratosphere.) Plan to Attend Junior College
Many of the required classes in the first two years are general education classes. So you may need to attend a junior college at a much reduced price. Just be sure that the junior college credits transfer to the university from which you plan to graduate. While it may not feel very prestigious to announce to your fellow seniors that you’re headed to Oak Tree CC, remember—you’ll get your diploma from the last university! Plan to Select a Less Expensive University
If you can’t bear the thought of attending junior college, perhaps you would consider public university rather than private? After graduating from a private university, I was surprised to learn that my employer recruited equally heavily at both private universities and public universities. In-state tuition at a public university is generally only a fraction of the cost of a private university. Military Service
Although you may be required to serve your country both before and after college, you may consider joining the armed forces to pay for your education. This option is not without risks, so choose it at your peril. Get a Job!
Some employers will pay for your education, although finding them may be a challenge all in itself. Naturally, you are expected to work as well as attend classes, complete homework assignments, and study for exams, so your college experience may not be all of the “fun and games” that you’ve heard it’s supposed to be. On the other hand, you may be able to earn real money while obtaining your education, and not be saddled with a lot of debts when you finish. Furthermore, up to $5,250 of education benefits provided by your employer are tax-free. Summary
While your savings options may be more limited, and you may have to explore other alternatives, it’s not too late to find ways to pay for your college education. It’s just making efforts down the usual and unusual channels. ninetyandnine.com © 2002, ninetyandnine.com --------- Glenda K. Moehlenpah, CPA, CFP® is the founder of Financial Bridges (www.FinancialBridges.com), offering Fee-Only financial planning and investment advice to people from all walks of life on an hourly, as-needed basis.
1 Limits are scheduled to be adjusted annually for inflation. Check with your tax advisor for limits when you start incurring student loan interest.
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