College Student's Life After High School: A Parent's Nightmare

Most parents want their child to succeed and build a future brighter than theirs were. They don't want their child to end up in jail or stand in the unemployment line every year. Many parents don't know how to help their child go on their own with holding their hand every step of the way, that is why you need to learn to give them a responsibility and push them out the door. College is one answer. It prepares them for long-term goals of security. It starts in High School, however. Pave the road by keeping a portfolio of their grades, SAT scores, Awards, Recommendations. These may seem unimportant to you know because it's just high school, but it is a record of their performance to determine their eligibility into a good college.

Unfortunately, many middle-class families are unequipped to fund the high cost of tuition, room and board, and supplies for college. We look to federal aid, grants, educational loans and work-study programs to help fund the financial strife. Many parents save money, but it's still not enough for the additional costs or the inflated cost of living for their college student. There are websites that will educate the parent on college requirements, but you also need to educate your child for the future. Here are some tips to help your child move forward:

Allow your child to get a major credit card with a very small limit under their name. Don't groan. This establishes their credit history. Monitor their credit card bills and make sure they are paying the minimum on time. I have heard many people complain that they should be able to get an educational loan because they never had any bills. Wrong. Financial companies depend heavily on your credit report to determine credit-worthiness. This is their proof of how responsible your child is on paying their bills on time, especially because of their age and the stereotype of young people being irresponsible about their bills. Moreover, no history means no loan.

During the last semester of high school. Prepare your child. Have them go online while you guide them through the Federal Aid application. They need to know how to do this every year. Yes, mom and dad, EVERY YEAR. The reason for applying for Federal Aid or FAFSA, as the department calls it, is to have the parents or students report their annual income, because income varies every year and the Federal Aid guidelines have a ceiling for household income. Make a nice notebook for them to log their User ID and Pin number for this. FAFSA will generate a Student Aid Report that will let you know what Grants or low interest Educational loans your child qualifies for. Save your Student Aid Report. This is good for your child's portfolio as well.

About the same time, have your child look for the college of their preference that would suit their Major course of study. Make sure that the college is accredited and that you log the contact numbers for the Financial Aid office and the Academic Advisor. They will be your allies when it comes to planning for your child's educational needs. Questions that you may be asked are: Is your child going to be staying on campus or off campus? What are their SAT scores? What are their goals?

Look for Grants. The more activities your child participates in during high school, the more chances they have in qualifying for grants, which is FREE money. You don't have to pay this back. The most popular grant, depending on your household income, is the PELL GRANT. This falls under the guidelines of the FAFSA application and more than likely your child may qualify for this if your household income level falls under the federal guidelines for qualification. There are other Grants, however, that your child might qualify for, like any musical talent, sports, being a minority in a class majority, or even coming from an indigenous country, but you need to help your child apply for each of them. The process may be tedious, but it is worth it in the end, when they win the award.

Start calculating the costs for the next four years. Estimating isn't a bad thing. On one side of the paper, estimate the cost for tuition, supplies, books, room and board for the next four years. On the other side, start listing down all the federal aid, grants, savings and other awards. Subtract the totals. If you still have a balance, then start looking at educational loans. Stafford loans are federally funded at a very low interest rate. These are the most popular educational loans. Start shopping around for low interest educational loans as well. Make sure that you ask questions like: What is the APR? When will deferment begin? Can I pay the interest while the child is still in school? How long is forbearance? One thing you should know about taking out private educational loans is that there may be limits to what you can borrow per year and overall as well as what the child is pre-approved for with or without a cosigner. There are financial companies that offer lower interest rates with a cosigner even if the child is pre-approved on a stand-alone basis. Keep in mind that when private educational loans are taken, it is only per school year, because a credit report changes periodically as well, therefore, applying for educational loans should be every year. This is where having your child build a credit history is important. If they can be approved on a stand-alone basis, you can save more money if you have good credit and cosign for them.

If you still have a balance, there are companies that offer payment plans based on qualifications. It's an agreement between the company and the school that you have arranged to pay the tuition through an interest-free payment plan with a credit card or other means. Keep in mind that you have to pay this on a fixed due date or the company will have to report to the school that you haven't been paying on the plan and this will eventually lead to cancellation of classes. Start planning now and educate yourself for your child or children's future and you will very well save yourself much stress when it comes to getting them out of the nest. Don't wait until the last minute because everything has a process and procedures and everyone has a deadline to completing this process.