A lack of money to pay for higher education hugely limits where a student can go to college. Worse, it can limit a student's ability to attend college, period. Today, the average 4-year degree tuition will cost students
- Approx. $37K+ for public in-state students
- Approx. $95K+ for public out-of state students
- Approx. $129k+ for private school
This doesn't include room and board, books and life expenses during those 4 years.
Most people just don't have that kind of money to pay for college. So they lean on the only alternate options they feel are available:
- Option #1:
Parents may refinance their homes to pay for a student's college education,
- Option #2:
Parents may use their retirement to pay for a student's college education , or
- Option #3:
The student takes out college loans in order to pay for school.
All three of these options can be life-altering mistakes that many times can be avoided if you know ALL of your options. There is another way to pay for college.
Suppose on top of wanting to attend that unaffordable dream school, you have a pretty good grade point average that's not quite strong enough to gain you admittance on its own. Or...
You do have the grades and an amazing transcript, but an acceptance letter will only leave you frustrated because you can't afford the tuition.
Many will turn to those three options mentioned above, but...
Here is the problem with your current options to pay for college
Option #1: Refinancing homes to pay for a student's college education
This is NOT a great option any way you slice it. Not only do so many college-bound students NOT have family homes to refinance, even if they do, doing this can put a financial strain on the family. It's never a good idea to leverage your home for college when there are other, better ways to pay for it.
Option #2: Taking money out of retirement to pay for student's education
Another bad and potentially risky idea. Because a college education is what you get in exchange for the money, you can never pay back your retirement account. Plus pulling money out before your retirement age is taxed heavily and a bad reinvestment of your hard-earned money. Especially since you can never get it back!
Option #3: Taking on student loans
This may be the worst of the three options because this is something taken on by the students themselves. And with college being as expensive as it is, student loan debt can take decades to repay. Just as students are ready to begin their lives, they're burdened financially with thousands of dollars in debt.
The Better Option
Did you know that 85% of colleges and universities give admittance and scholarships based on a student's college entrance scores (aka SAT, ACT or CLT)? It's true. This is very important to understand despite the rumors that these tests are going away. They're not.
Strangely, the myth seems to be ever-perpetuating that the SAT and ACT are becoming less important. This is definitely not true and doesn’t appear to be a possibility for a good many years to come.
Here are 6 reasons you don't want to ignore these tests.