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Post date: Sep 4, 2015 2:54:11 PM
You may have heard that student loans now top a trillion dollars or that the total amount of student loan debt surpasses the total amount of credit card debt. These numbers may have you questioning whether college is still a good investment. The Federal Reserve Bank of New York notes that attending college is still a good investment for your financial future, stating that over their lifetime workers with a bachelor’s degree earn more than $1 million more than those with only a high school degree.
Courtesy: America Saves, managed by the nonprofit Consumer Federation of America (CFA), which seeks to motivate, encourage, and support low- to moderate-income households to save money, reduce debt, and build wealth. Used with permission. Learn more at americasaves.org.
America Saves, an initiative of the Consumer Federation of America, offers the following tips for saving for college:
- Start saving as soon as possible – Even small amounts of saving will build up over time and will reduce the amount of loans you have to pay back later. Two popular ways to save are through 529 plans and savings bonds. There is a lot to know when choosing a savings option, so visit the links to learn more.
- Find free money – This can be the key to saving you thousands of dollars in interest you would need to pay later. There are billions of dollars available to those who put in the effort to apply. Check out StudentAid.ed.gov, https://bigfuture.collegeboard.org/pay-for-college, and finaid.umich.edu/PrivateScholarships for more information.
- Work while you’re in school – Remember that any money you can save or earn before and during college will reduce the amount of loans you need to take and save you money you would pay later.
- Consider your options – College is a big expense and investment. You may have dreamed about going to a particular school since you were young, but can you afford it? Compare the amount you will need to pay at the colleges you get into. You may find that one school offers you more grants than another.
- Get tips and reminders to save – America Saves can help students and their parents keep college savings top of mind. Sign up for the America Saves free text message tips and reminders by taking the Pledge to Save and choosing “Education” as your savings goal.
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