Home      Arts & Literature      College University      Financial Aid      Future Concepts      Languages      Online Education      Psychology      Science
How To Apply For Business Education Real Estate Grants
Applying for business education real estate grants can help you pay for courses and certification as a real estate agent.A Reality CheckThe truth is, getting cer…
    Hot Articles
•  How To Apply For Business Educati
•  Tips on Finding Scholarships and
•  The Federal Direct Student Loan P
•  Need A Full Student Loan With An
•  What About Your College Loan Cons
•  How To Write An Effective Scholar
•  How To Find Free College Grant Mo
•  Federal or Private Student Loan?
•  Student Loan To Cover
•  Some Clearing Up On Private Stude
•  Is It Possible To Finance College
•  Student Loans Going Under Serious
    Rec. Articles
   Home > Financial Aid >
Paying for College - How Much to Save?

When parents first start trying to decide how much to save, they often get overwhelmed by the cost of a college education. According to the Bureau of Labor Statistics, tuition increased by 8% per year, on average, from 1979 to 2001. This means that children born today will face college costs that are 3 to 4 times current prices. For example, this means expenses to attend a four year college could total $300,000 by the time your child is of college age (keep in mind this estimate is based on your child attending the highest priced college or university).As far as how much to save, dont worry about saving the full amount! Use the one-third rule as a rule of thumb. The rule states that you should expect to: Save one-third of the expected college costs, Pay one-third from current income and financial aid during the college years, and Borrow one-third using a combination of parent and student loans.Essentially, one-third will be coming from past income (savings), one-third from current income, and one-third from future income (loans). This lets you spread the cost of a college education over an extended period of time.Other good rules of thumb for deciding how much to save include: Save at least 10% of your paycheck (per child), starting the day the child is born. Save 10% to 15% of each year's college costs (per child), starting the day your child is born. Save at least $2,500 per child per year from birth (about $50 per week).The more you can save, the better off you'll be. Saving just $25 a week from birth to age 17 at 5% interest will yield almost $35,000 a nice college fund!

Pre:Tips on Getting A Scholarship   Next:Federal Perkins Student Loans
Copyright©2008 MyWeb, All Rights Reserved.