Loving Life Summer Edition 2014 Volume 8.7 | Page 14

Dollar$ and $en$e Ministry
529 College Savings
by
Deacon Jason Goods

It is never too early for parents to start considering how they will fund their children’s college education. The unfortunate reality is that far too many families do not come to this realization until college
education costs are imminent and are left scrambling when the university acceptance letters arrive.
This procrastination can also contribute to staggering amounts of student loan debt for recent college
graduates. Graduation season serves as an annual reminder for families to assess their financial preparedness for funding the college education of their children and plan accordingly.
According to a report by Sallie Mae, one year of college education and related expenses totaled
$21,178 on average in 2013. On the surface, this figure may seem daunting. Fortunately you do not
have to rely on your checking and savings account to fund100% of this amount.
With the combined effort from both students and parents, Sallie Mae estimates that approximately
33% of college education costs will be covered by scholarships and grants. These amounts can put a
significant dent in the escalating costs of a college education. Best of all, this type of financial aid
will never have to be repaid by the student or mom and dad!
An estimated 30%of college education costs will be financed through low-interest federally subsidized student loans. Unlike scholarships and grants, these amounts will have to be repaid, but the
payments are deferr VBV