There are many for parents that they need to follow, so that their children will free safe and grow normally. Actually, many of them are just myths that are inspired by the society’s opinion. For example, every respected parent has to sponsor the college for his kids. Because of that, there are lots of situations when parents have to take huge debts just to pay for an expensive college. Or they are gaining money for their retirement and just take all the money from their “foundation” and spend it on education. But is it worth it? Maybe you should find the college that will correlate your financial possibilities. Well, let’s find out.
First of all, main thesis – taking all your money from retirement savings is no good, even for your son or daughter.
Today, college and other types of education cost more than earlier, which definitely influences the state of every family and increases the status of the college. As an example, now, college costs three or even four times more than it costed only twenty years ago.
There are two tendencies: more and more people are looking for help in banks, talking with financial advisor just to let their child be a student. Also, the retirement fund of an average American becomes smaller and smaller.
But there are some possibilities not only to sponsor your kid, but also save your fund.
The main thing is to consider the date of your retirement and the amount of money that you have on your fund. You should go to the financial advisor and calculate the optimal amount of money that you can take from your fund, so that by the time of your retirement you won’t lose a cent. For example, if you have ten more years until a retirement, than you should consider that all your income has to annihilate the money that were taken from the fund, and even add some more.
There are also three types of loans that people can have: Parent PLUS – federal loans for parents of undergraduate students; student federal loan, and private loans.
One of the biggest advices is to begin with student federal loans. Actually, these loans can borrows you much less money than others, but you can always take one more loan – parent PLUS or private. But remember: you can always have too much money with those two loans, so don’t waste all of the by sending a child to the most expensive college possible. Try to find the best one among your wished financial area.
Finally, I’d like to give you some statistics. Near 2 million people aged from 50-65 years took out the Parents plus loan, and also more than 200000 people aged over 65 years took out the same loan. You should remember, that it is easier for student to study on another year, than for his parents to waste money from their retirement funds and make their life rougher and more difficult.
