Hidden Money
The Typical Way an advisor helps clients save for their kids’ college education involves a savings vehicle like 529 plans. Here are some lesser-known ways to ease the fiscal bite of college.
1. Notify the auto insurance agent. A family auto insurance policy may cover the car that a child takes to college, as long as the vehicle is registered with the parent as the owner. Also, if the student’s education brings their car to a new locale, it might make a difference in your premiums. Furthermore, if a college-bound student resides at a campus at least 100 miles from home and is not taking the insured vehicle, you may be eligible for a reduction in auto insurance premiums.
2. Graduate in three years instead of four. Some colleges offer accelerated programs that allow students to graduate in three years instead of four, saving you a year’s worth of tuition and related expenses. Some colleges offer a similar program that combines an undergraduate/graduate degree in five years. The student may have to take a heavier course load each semester and skip summer breaks to meet academic requirements, but it can help parents financially. Students can also participate in advanced placement test (in high school), internships, and job training programs to trim tuition cost and earn college credit outside the classroom.
3. Save on college housing cost. To save on college housing cost, you can buy a rental property near the campus. In addition to the potential that the property will appreciate over the years, you can gain income by continuing to rent the property to other college students after their child has graduated.
4. Buy it used. Students should buy used books whenever possible. There are many online bookstores that will give you a better deal that the campus bookstore. Used books are usually in good condition and cost about half the price of new books.
5. Search early. Applications for most college scholarships aren’t due until the students’ senior year in high school. However, with talented children you should start searching for grants and scholarships their freshman year. By finding potential awards when they begin high school, the student can choose classes and participate in activities that will give them a better chance of getting free cash later on.
Andy said,
Wrote on September 10, 2008 @ 1:07 pm
#2 is a little hard to do unless the student knows exactly he/she wants to pursue. In that case, going to a community college to take your core classes will save you a lot of money. The classes at community colleges are more affordable, and they’re pretty much taught the same rather you take them there or at a full-fledged university. After that, the student can transfer to any college of choice.