Giving your kids the best education you possibly can give them is one of the things that worry most parents. You want to let your kids to go to the college they want to rather than the one you can afford. With college expenses rising as they are you should be looking at $250,000 to $500,000 for top education.
Except for the happy few, everyone should apply for financial aid to give their child the education it deserves. More often than not, you will be pleasantly surprised to see that your kid qualifies for loans and grants.
First you should fill in the Free Application for Federal Student Aid which you can get at any high school and college (you can also apply online). Some private school will require you to complete Financial Aid Forms or PROFILE forms so that they can differentiate need amongst those requesting financial aid.
Not only the Federal government provides in financial support but also many states do, so it is worthwhile also applying for those if your child is considering a local college. Inform yourself at your kid’s high school or college for the necessary paperwork.
The government will then calculate how large a portion of your income you would be spending on education based on your financial data like your income and properties, dependents, how many children are in college…
Money that you have put into a retirement fund is not counted as an asset so don’t forfeit on retirement fund payments to set aside money for your child’s education, it might end up costing you more. Also if you are putting money aside for your child’s education, don’t do it on a custodial account or education accounts as colleges will count money on those accounts as a higher proportion of the income that will be spent on education.
Often, even if you don’t qualify for any financial aid, you will learn that you may have access to special student loans at interesting interest rates so it is well worth the effort to complete the paperwork.