Major Options for Education Financing

Instructor: Tara Schofield

Tara has a PhD in Marketing & Management

With the rising costs of schooling, planning for the expenses of an education and preparing financing options ahead of time is critical to ensure a student has the resources to attend college.

The Need for Education Financing

The cost of secondary education can range from a few hundred dollars a class to thousands of dollars per session. As a result, having a plan to pay for education is critical.

Methods for Financing an Education

There are many options for financing an education. Some of the most common and reasonable forms of financing are included below.

Savings

Savings accounts started for a newborn can come in handy when that baby grows up and starts college. Even a small deposit every month can add up by the time a child is old enough to be a student.

Teaching children to save for college from the time they are young is a practice that will save them thousands of dollars in finance charges and long-term debt. Setting up a savings account that can mature for years can create a solid base to pay for a student's education.

Let's imagine you have a young child that you want to encourage to attend college. In order to lessen some of the financial obstacles, you set up an educational savings account and deposit $100 every month. Additionally, as your child starts earning allowance and money, he is encouraged to put 50% of his earnings into his college fund. You anticipate he will have enough to pay for nearly three years of college by starting the savings when he was first born.

Scholarships

Scholarships are sponsored programs in which a donor has offered money that is passed on to a student to cover college expenses without an obligation to repay the gift. Each scholarship has its own requirements and expectations, from high grades in a certain subject to having an interest in a topic or event. The amounts of the scholarships vary and can be reliant on a wide variety of issues. Therefore, students must search and find the scholarships that are most fitting to their school and experience.

Your child has saved a substantial amount of money. In addition, he has actively participated in the business program in high school and learns of several scholarships that are offered to business-minded students, especially those who eventually want to own their own business. He has applied for a variety of scholarships and feels really good about the scholarships that require students to prove an interest in business. He has been a member of Future Business Leaders of America and is running for a state office in the college club. He believes he has a good shot at earning the scholarship.

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