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The Skyrocketing Costs of College
Historically, college costs double every 10 to 12 years. And the costs of college usually rise at a rate faster than inflation and family income.
Unfortunately, there is every reason to believe that history will continue to repeat itself.
Why Do the Costs Keep Going up?
Good question! There are many reasons why costs have been increasing and will continue to do so:
Because of these many factors, there is no easy or sure way to predict what college costs will be when your child goes to school.
What Can I Do to Prepare?
While you can't control or predict how much college will cost, you CAN control how well prepared you are. Here are five tips that can make paying for college a little more manageable:
- Start a college savings plan NOW. It is nearly certain that your child will have to pay something toward college costs. If you plan to contribute to your child's education, having money saved will give you options.
- Focus on scholarships. Your child can improve their chances of getting scholarships by taking challenging coursework, getting good grades, having good attendance, being involved in school and community activities, and making good impressions on others.
- Be open minded and diverse in searching for colleges. Look at a variety of schools that offer the degree your child wants. Keep in mind that a school's cost does not necessarily reflect the quality of its education.
- Avoid debt. As the college years approach, avoid taking on any large, long-term debt. This will leave you in a better position to take on college expenses.
- Explore student aid. When your child enrolls in college, take full advantage of student aid programs, tuition payment plans, tax breaks, and any other options available to you.
Higher education is a very valuable and very expensive product. All indications are that costs will continue to increase. By preparing now, you can be well positioned to deal with the costs when the big day arrives.
Want to Know More?
- A safe bet is to assume that costs will increase by an average of 5% per year and then plan for what the costs will be when your child enters college.
- Visit YouCanDealWithIt.com for more ways you and your college-bound child can prepare for the future.