My 12-year-old daughter recently shared her career plans with us. She wants to be a lawyer, then a judge to pave the way for her run to be President of the United States.
She also told us she plans to attend an Ivy League school across the country.
We love the ambition and realized it’s never too early to start talking to the kids about how to finance their education.
We’ve set up 529 plans, but with the College Board estimating in-state college costs averaging $25,290 ($50,900 for private college) for just one academic year - and that’s this year, not six years from now - it’s clear our kids will need to be active partners in making their university dreams a reality.
Our paying-for-college conversations are the latest variation of, “If this is something that matters to you, then you need to plan and take the lead in making it happen,” which we drill into them daily. It’s meant to ground and empower, not scare or discourage them.
Many of our friends and family have older children and are currently going through process of paying for college. Here are a few tips we’ve learned form them along the way.
- Make zero assumptions about whether you qualify for financial aid. Always fill out the Free Application for Federal Student Aid (FAFSA). Consider this application the skeleton key to every financial aid door from grants and work-study jobs to student loans. You can apply as early as January of your child’s senior year of high school. Always check deadlines.
- Apply for scholarships early. (Preferably BEFORE their college freshman year.) Don’t limit yourself to just academic or athletic scholarships. There are countless private scholarships from companies, non-profits, and professional organizations. Check out sites like com or try an app like Scholly, which suggests the best scholarship eligibility match for you.
- College, state and federal government grants. NerdWallet recently reported that this year alone, families left on the table $2.3 billion in federal grant money that doesn’t need to be repaid. After filling out your FAFSA, you’ll be notified of any college grants your child is eligible for in the financial award letters from the colleges that accepted them.
- Don’t rule out pricier “dream” schools. Often the big, top schools are the ones that have more funds at their disposal to help bridge the gap in covering costs.
