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Reduce
College
Debt
Family Features
College is a significant investment and how to pay for it can be a
major source of concern for parents and students. However, there
are ways to reduce the amount of debt you take on when preparing for higher education.
Outstanding student loan debt has now reached $1.2 trillion, according to 2013 estimates from the Consumer Financial Protection
Bureau. Yet there are ways to help reduce the amount a family or
student has to borrow to fund a college education, if families start
early.
“It’s never too late for families of college-bound students to
reduce costs, if they consider options well before senior year,” said
Cynthia Tidwell, CEO and president of Royal Neighbors of America, one of the first women-led life insurers in the U.S.
Royal Neighbors has also awarded more than $4 million in college
scholarships since 1962. “The key is to think creatively — whether it’s earning college credits in high school, using financial tools
that allow for cash savings, or researching scholarship options
— don’t mortgage your own financial future or saddle your child
with debt that could keep her or him from reaching their dreams,”
Tidwell added.
Four Ways to Reduce College Costs
1. Earn college credit in high school. Many high schools offer students the opportunity to earn dual high school and college credit,
before college, through advanced placement (AP) courses. You
can learn more about AP programs online.
2. Consider a community college. Average annual community college tuition and fees are less than half those at public four-year
colleges and universities and one-tenth those at private four-year
colleges and universities, according to a 2008 report from the
National Center of Education Statistics.
3. Learn about college savings financial options. There are many
different financial products to help save for college. Under certain
circumstances, some colleges and universities lock in tuition for all
four years. Even certain life insurance policies offer cash savings
options to help pay for expenses such as college tuition, weddings, or starting up a business. Look for permanent or whole life
policies with cash value accumulation options.
4. Research scholarships early. Scholarships are available for
traditional and non-traditional students, but don’t wait until senior
year to research. Some require organizational membership, volunteer hours, or criteria that may take time for the student to be
eligible.
“Royal Neighbors of America believes that every woman and her
family should be financially secure and that education is the key
to a brighter future,” said Tidwell. “Don’t be discouraged by rising
college costs. There are ways to save if you plan ahead.”
To learn more about scholarships and other member programs
available through Royal Neighbors of America:
www.royalneighbors.org
(800) 627-4762
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