Tips for Parents on How to Save for Their Children's College Education

If you're a parent that already knows your child will need financial aid for college, there are things that you can start doing now to make it easier for your child to qualify for financial aid.

Start saving now

It is never too early to start saving for college. Parents are expected to contribute at least 20% of the cost of the child's college education. Because financial aid packages are supposed to cover what is left of the cost after the Expected Family Contribution you need to be able to contribute some money to your child's education.

If you don't have any money set aside to pay for the Expected Family Contribution you will not be able to get Federal aid to cover that cost and may end up taking out private loans, which end up costing you and your child a bundle in the long run.

Keep investments and bank accounts in your name

When the government is calculating how much aid your child is eligible for, they assume that 20% of the child's assets will be available to go towards the cost of education. However, they assume that only 5.6% of the parents' assets will be available to go towards college. Work this to your advantage. Instead of putting that savings account or other investment in your child's name, keep it in yours.

Ask about financial aid

When you visit colleges with your child, always schedule an appointment to sit down with a financial aid counselor at the school so that you can get a real idea of what the college costs and how much aid you can expect to get. Schools want to attract students so a counselor would be glad to sit down with you and help you figure out how you can afford to send your child to that school.

Don't put it off

You can't start preparing for your child's college education too early. Look at all of your options, start college savings programs, and be aware of the increasing college costs and laws about federal aid. Before you know it you will be sitting down to fill out that FAFSA and send your child to college.

Creative ways to get money for college

Don't give up if you don't qualify for federal financial aid or if you still need more money for school. You can still get a college education; you just need to find some creative ways to bring in more money. Here are some alternative ways to bring in extra money to help out with those college bills.

Start at a community college

Go to a community college for your first two years and get all the required classes out of the way. Then transfer to a four year school to finish your undergraduate degree. You can save a lot of money by doing that.

Work part-time

A part-time job can bring in enough money for you to live on and pay for basic expenses. It can be tough to hold a job and study but if you find the right job it's not so bad. If you find a job at a restaurant or coffee shop you may also get free meals or beverages that can help supplement your bottom line.

Get a sponsor

Ask a friend or family member to sponsor you through college. They can pay a set amount of your educational costs and you can work out some kind of payment arrangement to repay the money after you graduate. Or, ask if you can work the money off by doing errands or chores for them throughout the year.

Get Donations

Put up a website and say that you are taking donations to pay for your college education. Put on the website all your accomplishments, GPA, and a statement about why you want to go to college. Send out emails and press releases to get attention for your cause. Set up a spot on the website where people can donate to your cause.

Go for an accelerated degree

If you plan to get your degree in three years instead of four or five you can save a lot of money and avoid a lot of debt. You will need to work extra hard for the years you are at college, but in the long run an accelerated degree can save you a great deal of money.

There are lots of different ways that you can find money to help cover college costs if you think outside of the box and are willing to take a few risks. It's not always easy to ask people for money but the chance to have a college education is worth a little effort.