Hi folks, J.G. Wentworth here with the first of a series of blogs exploring the ins and outs of paying for a higher education. With college costs continuing to rise, it is never too early – or too late – to think about how to pay for college for yourself or a loved one. Here are the basics:
1) Start by saving
The general estimate for most “big-ticket” items like education, is that every dollar paid upfront without borrowing, is equal to three dollars one doesn’t have to pay down the road. So come up with a budget and savings plan – and do your best to stick to it.
2) Look into college savings plans that offer income tax breaks
A 529 plan is an education savings plan designed to help families get tax benefits for money directed towards college. It is a good idea for families of future college-goers to look into this plan, and begin making regular contributions to it.
3) Look into federally-sponsored student loan programs
The first step for college applicants who are anticipating borrowing money is to fill out the Free Application for Federal Student Aid, or FAFSA. This form will determine your eligibility for loan programs such as Stafford Loans, PLUS Loans, and Pell Grants, which will offer you the lowest interest rates on borrowed funds.
4) Look into state-sponsored student loan programs
Depending on where you live, your state may also offer loans to students who are either from that state, or who are attending college in that state.
5) Research and apply for scholarships
There are a wide range of scholarships available for students of all backgrounds, regions, and abilities. While applying for scholarships takes a tremendous amount of time, it is worth it, for scholarships can help alleviate the tremendous financial burdens placed on all those looking to pay for a higher education.
Our future blogs will delve deeper into each of the topics explored above. In the meantime, if you are considering paying for college by selling your future structured settlement or annuity payments – a great option for those looking for cash now – please give one of J.G. Wentworth’s representatives a call at 877-227-4713.
Every individual’s financial situation is unique. J.G. Wentworth and its representatives do not provide financial, legal or tax advice. You should consult a qualified tax and/or legal professional for advice and information concerning your particular situation.