Preparing for College Bills

A college education is a very expensive and valuable endeavor. With some careful planning, it can become the best financial investment you ever make in your child. If you want your child to get a college education, you must do all you can to help make it happen.

Maybe you have been planning for this for years and have positioned yourself well to help in any way you can. Maybe you haven’t done much planning, and realize now that it’s time to start. Maybe you have had some unfortunate financial difficulties that are still giving you trouble. Whatever your situation, there are things that you can do now to start preparing for the day when those college bills will arrive in your mailbox. These strategies not only make good financial sense, they also take advantage of the way current financial aid regulations work.

1. Save, save, save. Savings give you options. Having money in the bank is always better than not having money in the bank. Also, when it comes to financial aid, parental assets are treated very generously in the current calculation formula, so don’t be afraid to save money. Be sure to read the article on "Saving for College."
2. Clean up your credit rating. No parent wants to borrow to pay for a child’s education, but if borrowing is necessary the first step is always a credit check. Make sure you address any problems in your credit history.
3. Pay off consumer debts. Consumer debt, even your home mortgage, is not considered in any way for most financial aid programs. This means that having things like car loans, consumer loans, and credit card debt will hurt you, not help you. Paying down on these debts will free up money that can cover educational expenses or monthly payments on educational loans.
4. Review your spending habits and your priorities. Take a serious look at everything you currently spend money on. Try to save a little each week and watch your savings add up. This might make it possible for you to more easily afford the college’s monthly payment plan or an educational loan.
5. Keep learning all you can about college and how to pay for it. The more you learn about all of your financing options, the more comfortable and prepared you will be when those college bills begin to arrive!