Websites Help With Making The Big College Decision
DENVER (CBS4) - It's that time of year when many high school students receive their college acceptance letters and their financial aid packages. They are expected to make their decisions by May 1 for most colleges, who are anxious to know who will be enrolling.
Many students and their parents are turning to websites to help them evaluate the finances and the strengths and weaknesses of specific colleges.
Two popular ones that help families navigate colleges are:
Check out Yahoo! personal finance expert Laura Rowley's financial tips to help parents prepare and afford college education:
1. Start saving now in a 529 college savings plan - A 529 college-savings plan is the easiest way to save. You can open one of these state-sponsored accounts with as little as $5. And your savings grow faster because the money grows free of federal and state taxes, and withdrawals are federally tax-free if used to pay for qualified education expenses, such as tuition, fees, room and board, and books. Meanwhile, the 529 account owner retains control of the account.
2. Maximize scholarships and grants first, and then tap federal loans.
3. Beware of schools that offer a fabulous financial aid package that must be renewed each year - A state school that costs $15,000 a year and offers no financial aid may be a better deal than a private college that costs $50,000 and offers a $35,000 discount that must be renewed each year.
4. Do not borrow more for your entire education than your expected starting salary.
5. Know that over-borrowing for college may spoil your other life plans, because you cannot escape the debt, even if you file for bankruptcy.
6. If you borrow, double the cost of everything you buy with the loan money - because that's the real cost of the loan including interest.
