According to The College Board, the average yearly tuition at a public four-year in-state university is $8,893. That number more than doubles for out-of-state tuition to $30,094. Neither of those price tags includes room and board, books, computers or additional items you made need. If the cost stresses you out, you’re not alone! Taking action now can help reduce your anxiety.
While student loans are an option outside of saving to pay for college, sometimes the debt you accrue from isn’t always worth it. Graduating students in 2013 averaged $29,000 in student loan debt and the number continues to increase an average of 6% each year. By starting a savings plan now, you can save yourself a mound of debt by reducing the amount you may need to borrow.
Another way to pay for college is through scholarships. Work with the college’s financial aid office or do a thorough search of the internet to find scholarships that are specific to your situation or that are not well known. Taking the time to do some research can significantly improve your ability to pay for college without loans.
Here are some ways to start the saving process:
Education
Are you or your new spouse considering returning to school to further your education as a way to achieve career goals after your wedding? Do you plan to pay for your children’s college? While both of these may seem down the road, starting a saving strategy now will help you and your partner avoid anxiety in the future.
Open a savings account dedicated to your education goals. Determine how much of your monthly budget you can realistically contribute and commit to saving in that account.
Research Indiana’s College Choice 529 Plan. You can open an account for as little as $25 and can earn an income tax credit of 20 percent of contributions to your 529 plan, up to $1,000 per year. Learn more about Indiana College Choice 529 by visiting www.CollegeChoiceDirect.com.
Consider working with a financial professional. A recent bulletin from the North American Securities Administrators Association and the US Securities Exchange Commission could provide helpful information in your selection of a financial professional: http://www.nasaa.org/26029/making-sense-financial-professional-titles/. You can also find out whether the person is licensed and registered, and what type of license they hold, by using the searchable databases on www.indianamoneywise.com or by calling the Secretary of State’s Securities Division at 1-800-223-8791.
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