As it is, college loans are helpful throughout the teen’s college life, but it would be hard if the family is downed by debt before or during the duration of the teenager’s stay in a college or university. It would be then safe to say that he or she would be well off in a state college rather than taking on the private one.
To help prevent any inconveniences when under a college loan, here are some of the strategies that would certainly help the family:
- Save, save, save. It helps if the family saves money before the child enters college. This is especially good if they live in a state where income-tax break for contributions is given to 529 plan holders, which the state sponsors. What is good about here is that withdrawing money from 529 accounts is tax-free. That way, paying college expenses are not reduced.
- Choose a marketable major to take in college. This is for the sons and daughters who are about to take on college. It would be practical for them to take a major that is marketable and would guarantee an immediate job offer. Such majors such as accounting, business administration, engineering, and computer-related studies are some of them. Any course will do, so long as the industry is a marketable one.
- Obtain money smartly. Such loans as Stafford loans for students and PLUS loans for parents are two of the best programs to go if the family has to borrow money to pay bills. Expensive private loans don’t always work, so availing either or both of these two is much more practical.
- Parents should talk with their teenagers about their college plans. This is the first thing to do before letting the latter start their search for the university or college and the major they want to take. That way, they’ll know if these fit the family’s budget. They’ll also know the amount of money they need to contribute for their education.