(BPT) - The summer months before college begins are exciting, as everyone anticipates the journey ahead and the educational dreams of every parent and child become realized. It can also be a stressful time, however, as educational costs — plus many other expenses — become a reality and quickly add up. A recent College Ave survey found that parents overwhelmingly believe in the importance of a college degree for their child's future (89%), but also agree the costs of college are stressful and surprisingly high.
In the survey, 67% of parents say the cost of room and board was much higher than expected, while 65% also find tuition and fees to be more than anticipated. Over half (55%) say they were surprised by the amount their family was expected to contribute when financial award letters arrived. Parents also mention spending more on things like electronics, transportation and dorm room essentials.
How parents and students are meeting the challenge
Because college is viewed as crucial to their future, families use a combination of methods to fund their child's education. The first step in the college funding process is filling out the Free Application for Federal Student Aid (FAFSA), which can be completed online and will determine eligibility for financial assistance like grants, merit aid, work-study jobs and federal student loans.
While 3 out of 4 parents report setting aside money for their child's college education, just over half were comfortable with their current level of savings. To cover financial gaps, families often use a mix of methods to pay. More than half (62%) say they are using scholarships and grants, 45% will borrow federal, private or parent student loans, and 17% say the parent will take on a side hustle or second job to help cover college costs.
Parents also report using strategies to save money such as placing emphasis on their child graduating within four years (56%) and working while in college (46%). Most parents manage extra costs by using more of their income and savings, as well as having their child apply for student loans and encouraging them to seek more scholarships.
Bridging the last-minute gap
One of the fastest ways to immediately cover any college financing gap, especially when time is running short, is through student loans. First, make sure to take out any federal student loans in the student's name, as these loans come with unique benefits such as income-based repayment plans that are not typically offered by private student loans.
However, because there's an annual maximum amount you can borrow in federal student loans, many families also need to explore other options like private loan options. It pays to shop around for the best private student loan lender, as each one offers different rates and repayment terms.
To help determine how student loan repayment will impact your family's budget, you can use an online Student Loan Calculator to better understand the total cost of the loan and estimate what your monthly payments will be. One customer-friendly student loan provider to explore is College Ave. They offer competitive rates and a variety of loan repayment terms that can fit your family's budget. Better yet, the application process takes less than three minutes.
Although many scholarship deadlines have passed, you can still find options to supplement college costs. Consider searching for smaller or local options with flexible deadlines or less competition, such as through your child's high school career counselor, civic and community organizations, local businesses or your (or your child's) employer. Keep in mind that the College Ave $1,000 scholarship sweepstakes is continuous, so you and your child can enter online every month.
The college journey is an important milestone in every young person's life, so it's crucial to provide them the support they need. With continued effort, you can help them achieve their dream, so they can earn the education they deserve.
Find more information and tips on funding college at CollegeAve.com.
