If you have a child who will be entering into the college world next year, you may be questioning how you’re going to pay for it.
It may sound like a cliché, but now is a time to focus on the positive. Your child is college-bound. She has the ambition, intelligence, and drive to do something with her life. First, take a moment and celebrate that little victory, then take a deep breath and know that the financial side will work itself out.
Before you begin planning your course of action, get a realistic estimate of costs. The College Board maintains a resource called the Expected Family Contribution (EFC) calculator. Using this tool, enter your income, savings, and the number of people in your household. At the end of this, you'll get a dollar amount showing how much the federal government expects you to pay. You can use this number as a target for how much you'll have to come up with each year.
Next, have a conversation with your child, so you can determine a course of action together. Once you have a good understanding of realistic costs, it's time to start planning. Here are a couple of options to consider as you and your child are planning the next steps.