Preparing for College – Can I afford it?

The question every parent dreads is – ‘Mom, Dad I need some money.’ Of course if you are a parent then you are going to hear this quite often and it is important to have a response to that request.

At times parents feel frustrated when they can’t find the money to meet the needs of their children.  It is especially hard when children need money to achieve their educational goals such as being able to pursue higher education.

Options for parents

Parents have several options when they are faced with funding their children’s education.  These options include qualifying for scholarships or bursaries, taking out loans or having a long term savings plan.

Each option has its advantages and disadvantages and parents need to decide which one works best for them and their family’s needs.

Scholarships

Contrary to popular opinion, scholarships are not hard to apply for as in most cases they can be done online.  The qualifying process might seem a bit involved but the result is worth the effort.  The students with excellent grades have a better chance of getting through with scholarships as they are awarded based on academic performance.

Some scholarships are also geared towards the study of specific disciplines and so choosing that area will provide students with more choices. The best part of winning a scholarship is that the burden of paying for higher education is often totally or partially lifted so that parents can breathe easier. It is also important to note that some scholarships are based on financial need and so this would need to be proven in order for students to qualify.

Bursaries

Companies often reward students with one time gifts that assist with their education.  If you work at a company it makes sense to ask about their policies about dispensing grants to students.  At times persons do not bother to apply because they think that there will be too many applicants for them to stand out but it’s much better to try than ignore the possibility that you might succeed.

Loans versus Saving Plans

It’s obviously much better to have a long term savings plan than to take out a loan.  The interest rate of a loan can determine how much your repayment will be over the years and often you end of paying twice the amount that you borrowed. On the other hand using a long term savings plan might mean some sacrifice now but in the future your child can pursue their educational goals without any financial strain on the family’s budget.

So are you planning for your child’s education?

Can you pay for their education? Which option will you consider? Let me hear from you!

Teri Ann Renee Paisley

Gleaner online writer

Tags: budget, bursaries, college, education, financial, goals, loans, scholarships