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Debt Defense: Why Even a Small College Fund Makes a Huge Difference

Jul 25, 2018

The cost of a college education is substantial. While it is unaffordable for some individuals, it is only attainable through the use of student loans for other individuals. Some parents take the initiative to create and fund a college savings account for their children.

If you have taken this step, you may feel discouraged by your limited ability to fully fund the account as desired. Even if your fund’s balance is not at a desirable level, find peace in the fact that even a small college fund can make a huge difference in your child’s future.


Reducing the Impact of Student Loan Debt


Even if you have only managed to save a few thousand dollars over the years toward your child’s college education, be aware that this directly offsets the amount of loans that your student needs to take out.

When you analyze a credit risk monitor, you will see that outstanding debt balances and higher monthly payments are a detriment to your child’s adult life. Your effort to save money toward college keeps the impact of these factors as low as possible.

Mitigating the Cost of Living Expenses


When your student is enrolled in college, he or she will need to pay for living expenses. Some students will take on a part-time job, and this can make it much more difficult to earn good grades while in school.



With money from your small savings fund, living expenses may at least partially be covered. This means that your student may be able to work less and devote more time to college courses and studying.


Improving Your Student’s Life after Graduation


Between the combination of keeping your student’s personal debt levels as low as possible and helping your child to allocate more time toward school work and studying, you are setting your child up for a better chance of success.

Without a college fund, it may seem like life is working against your child. You can see that a college savings fund makes a huge difference in your child’s opportunities and overall life after graduation.

It is easy to get dismayed that your child’s college fund does not have tens of thousands of dollars in it and that it is not sufficient to pay for the full cost of education. However, when it comes to paying for college, every little bit helps. Regardless of how many years are left until your child enters college, now is a wonderful time to focus on funding a college savings account.


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