How to pay for college: 3 myths that have been around for a long time
Does the thought of paying for college keep you up at night? Are you dreading what life would be like financially if you decide to cover your child’s college education expenses? Before you throw in the towel, discover 3 myths that may very well be holding you back and the facts that can give you hope.
Myth #1: A college education is too expensive.
This myth is funny because it has spread in the media like wild. Consider this; Let’s say I was a school teacher making $44,000 a year. I decide to buy a new car and naturally I walk into the “supposed” best car dealership in town. In my town this happens to be a Rolls Royce dealer. I look around and soon discover that the average price for the most basic model is $295,850. I walk away shaking my head telling everyone who will listen, “a car is too expensive.”
The Truth: A College Education Is NOT Too Expensive
The fact is, the specific college your child is interested in may be too expensive for your budget, but it’s not too expensive for the right buyer. Similar to the car example above, if we were friends, would you agree with me that cars in this town are too expensive or would you say “Hey Buckwheat, keep shopping at the other 5000 dealerships in this town.”
Myth #2: Student loans are a necessary evil.
This myth is traditionally spread by professionals who really should know better. In an effort to follow their advice, many financial aid professionals make these types of statements to help you, as a parent, feel more comfortable with debt.
The truth: Your child can earn a debt-free degree. As the financial landscape in this country changes, parents are rightly becoming more skeptical about taking on excess debt. Unfortunately, when asked how to pay for college, some financial aid advisors advise many parents to take excessive student loans that are totally unnecessary.
Myth #3: I have to collect all my tuition money at once
This myth is good because it takes advantage of a person’s lack of knowledge about how payments for college expenses are processed. Many people think they should have the full cost of tuition, room and board, and books all at once.
The truth: In most cases, you won’t need to have 100% of the money for your child’s education, but will be able to set up an installment plan with the college. This helps because in many cases, as payments are spread out over time, it is now possible to pay for a college education without borrowing.
