Blog

Apr

16

2021

Paying for College

Student loan debt is at an all-time high and only continues to grow. It’s a sobering fact, especially considering that most students headed to college need some kind of financial assistance. The key is to start early and open a savings account for funding education expenses. This helps with not having to depend so much on financial assistance and instills strong money management skills at an early age.

Open an age appropriate Youth Savings Accounts for the child in your life today.

Finding Financing 

Due to the high cost of college tuition, many families cannot pay for college with savings alone. Traditionally, student loans have provided an important avenue in allowing students to go to college. Even though paying for school may seem like a daunting task, there are several steps you can take to find financing. Here are tips and other ways you can pay for college: 

Your school’s financial aid office is a great place to start.

Financial aid offices are trained to help people find financing for school and have dealt with many others in the same situation as you. Ask them what options are available for your financial circumstances.

Look for scholarships and grants.

Why borrow when you do not need to? Scholarships and grants should always be your first choice. Usually, high school guidance counselors and college financial aid offices have information on available scholarships and grants. Each year, Viriva provides up to $4,000 in scholarships to eligible student members. Learn More

Consider a home equity loan or line of credit.

For parents with a significant amount of equity in their homes, this may be a good way to help finance college. Interest rates are usually fairly low. You must remember that home equity loans and lines of  credit are secured debt. You could lose your home if payments are not made. Learn more about Viriva's Home Equity Loan Services. 

Stay informed and know your options.

It seems that the laws surrounding student loans change every few years. Watching or reading relevant stories in the media will help you to be better aware of what your options are and what new opportunities are created.

Preparing For The Future

For parents, the current student loan crunch demonstrates why it is good to save for college. Even if student loans are readily available when your children go to college, saving allows them to rely less on loans, which they will need to pay back after graduation. If you are saving for college, take advantage of what Viriva has to offer you.  

For example, Coverdell Educational Savings Accounts allow you to invest savings for college and not pay taxes on earnings, as long as the funds are used for qualified education expenses. Learn More

College tuition is high, and paying for college is often not an easy task. Teach your children that saving is the way to go to have less debt to deal with after college. Being well informed can help you prepare for and manage the cost.

This article was brought to you by Balance, our financial education partner.