46 / 48
Page 46
2017 EDUCATION MAGAZINE
LINCOLN DAILY NEWS MARCH 1, 2017
F
inancing a college education
can seem challenging since
the cost of education has risen so
high. The College Board says,
“The average cost of tuition and
fees for the 2016–2017 school year
was $33,480 at private colleges,
$9,650 for state residents at public
colleges, and $24,930 for out-of-
state residents attending public
universities.”
When looking into financing a
college education, it is good to look
at many different options besides
taking out student loans that may
leave the student in debt for many
years.
Director of Financial Aid at
Lincoln Christian University
Nancy Siddens says, “It is true
that the cost of higher education
has risen at a higher percentage
than the cost of living over the last
decade, but don’t let the ‘sticker
price’ alarm you as there are grants,
scholarships, student loans, and
savings plans that will reduce the
cost that a family has to pay when a
student starts college.”
Jack Getchel, who worked in the
financial office at Lincoln Christian
University for many years, said it
is better to try to avoid taking out
student loans when possible.
Getchel said it is also important
to know the difference between
subsidized and unsubsidized
loans. With the subsidized loan,
the federal government pays
the interest while the student is
in college or when the loan is
deferred. With an unsubsidized
loan, interest starts accruing as
soon as the loan is taken out.
When considering savings plans for
college, note that it can take many
years to save up the amount needed
for college.
Siddens says, “If your children are
young, I recommend looking into
a college savings plan, such as the
College Illinois 529 prepaid tuition
program. They have options for
attending a community college or
a university. At any age, you can
become a member of Upromise,
where you earn cash back for
college by buying groceries, eating
out, and shopping.”
Mark Kantrowitz of Money
magazine says a 529 savings plan
can help you save for at least a
portion of the costs. Kantrowitz
says, “If you can manage it, aim
for saving enough to cover at least
one-third of future college costs.
For a child born this year, that
means saving $250 a month from
birth for future enrollment in a
public four-year college.”
The college savings plan is a good
idea, but not always feasible.
Getchel says many do not think
about saving until their kids are in
high school.
Financing a college education
Continued
u
By Angela Reiners