Bob's Blog

In the past week, news media have been reporting that some states are no longer offering state-funded loans for college education. Most of these loans are in the form of grants that the state would offer with low interest payments. States, such as Iowa, Pennsylvania, and Michigan are suspending state-funded college loans due to the lending crisis that has hit most major mortgage companies. The cost for higher education continues to climb beyond the reach of most families, and with the loan industry impact on the economy, some states are struggling to cover the basic needs of government.

Many parents of soon-to-be college students are in crisis mode, trying to figure out how to provide for their children's future education. They are feeling the squeeze financially because of increasing tuition rates and the unstable environment of the economy. Some students are opting for community college, only to see tuitions rise at these schools, which slows their pace to reach a four-year institution. So, what can be done to help both parents and students during these times? Here are a couple of suggestions.

• Start applying early for financial aid and grants. Most parents and students are starting their investigation too late to find financial help. You should be looking into these areas by the time your child is heading into high school. Some high schools offer college financial seminars during students' freshmen year.
• Suggest that your church offer its own college financial seminars. You can host your own college financial seminar for parents of your church and around your community. And don't just gear it towards parents of high school students, but open it up to all parents. It's never too early to start thinking about how you'll pay for college.
• Start a money account for your child. There are plenty of saving programs that banks provide for college education. Do your homework to find out which savings plan is best for you.
• Research financial programs. I'm always surprised by how many parents and students do not take advantage of the free money that is out there. Whether it is a matching grant provided by your work, a service group that your son/daughter belongs to like Scouts, church denominational aid, or other groups that are willing to assist young people make their college dreams come true, there is no excuse for not looking into these programs.

Unfortunately, with the forecast for future unrest in our economy, it looks like other states are going to follow suit and cut back on state-funded loans. Hopefully, with these helps, you'll be able to get a little closer to providing the financial needs for your child's education.

This entry was posted on Saturday, March 15, 2008 at 5:50 AM. You can skip to the end and leave a response.