The cost of a college education continues to rise.
The College Board says the average cost of tuition
and fees for the 2015–16 school year was
$32,405 at private colleges, $9,410 for state residents
at public colleges, and $23,893 for out-of-state residents
attending public universities. In 2013 and 2014,
the average cost of a year’s tuition at a Canadian university
was $5,772.
The high cost of education compels many students
to fi nd ways to fi nance their education. For
many, that means exploring available scholarships.
Scholarships come in different forms and are
usually offered to students as a gift to be put toward
college or university costs. Some schools offer scholarships,
while other scholarships are sponsored by
outside organizations.
Students who meet certain requirements may be
eligible for scholarships. While academic or athletic
skills are the fi rst criteria associated with scholarships,
they are not the only avenues by which students
can pursue scholarships. They may be offered
to students of certain ethnic groups, children of employees
at particular companies, or to students who
live in particular states. Local branches of organizations
like the Rotary Club or Kiwanis also may give
out scholarships.
To improve one’s odds of getting a scholarship,
consider the following tips:
Get involved with the community. Many
scholarship sponsors seek individuals who are committed
COURIER L 28 IFE, JULY 26-AUG. 1, 2019 PS
to volunteerism. Plus, volunteering for various
groups puts students in the path of information
about scholarships from these organizations.
Use scholarship search engines. Those who
search for scholarship sponsors should fi nd plenty
of results if they peruse scholarship search engines
such as Scholarships.com, CollegeBoard.com, and
FastWeb.com.
Check the local newspaper. The coupon section
of the Sunday newspaper may feature scholarships,
as might the classifi ed section. This is a great
resource for fi nding locally based scholarships.
Use networking contacts. Students should ask
anyone they know if they are aware of any scholarship
opportunities. Students who develop a rapport
with guidance counselors or the fi nancial aid department
at their prospective colleges or universities
may learn about scholarship opportunities that
are not highly publicized. These people may have
the inside track on scholarship information.
Apply for all available scholarships. Now is
not the time for students to become lazy. Students
should apply for as any scholarships for which they
meet the eligibility requirements.
Scholarships can help students offset the rising
costs of a college education. Those who are willing
to put in the research, time and effort to apply may
fi nd a wealth of scholarship opportunities at their
disposal.
EDUCATION
The cost of college tuition concerns
parents from all walks
of life. While college continues
to get more expensive, it remains a
worthy investment.
In its 2015–16 “College Planning
Essentials” report, J.P. Morgan Asset
Management dispelled the growing
notion that a college education
is not worth the student loan debt
many young adults assume to earn
their degrees. The report noted
that college graduates earn 38 percent
more than high school graduates,
even after factoring in student
loans. The report also noted that
the return on investing in college
is nearly $1 million more in lifetime
earnings. What’s more, a 2013 report
from the Georgetown University
Center on Education and Workforce
projected a shortage of five million
college-educated workers by 2020,
suggesting that college graduates
will be in high demand by the start
of the next decade.
While such figures highlight the
importance of a college education,
they may do little to ease parents’
concerns about how to finance that
education. While saving enough
money for college may seem impossible,
parents can take steps to decrease
the likelihood that their kids
will need to take on substantial
loans to support their education.
Start early
The earlier parents start saving
for college, the more money their
children will have to fi nance their
education. Parents may not realize
just how much college tuition is rising
compared to other expenses.
According to the U.S. Bureau of Labor
Statistics Consumer Price Index,
the cumulative percent price change
of college tuition between 1983 and
2015 dwarfed the price changes of
other expenses. For example, while
the cumulative price change of housing
rose 143 percent during that period,
the cost of college tuition rose
722 percent over the same period.
The earlier parents start saving
for college, the more they can take
advantage of compound interest that
many college savings plans offer.
Schedule automatic
monthly contributions to
college savings accounts
Parents learn to expect the unexpected
soon after their children
are born. Unforeseen expenses may
tempt parents to reduce or skip their
monthly college savings account contributions.
Reduced or missed contributions
can add up over time, however, potentially
reducing the totals in your
child’s account by a substantial
amount. Set up automatic contributions
with your bank or portfolio
manager so you are not tempted
to use the money you set aside each
month for college to fi nance other expenses.
Increase contributions
each year
Increasing your annual college
savings contributions each year can
help the accounts keep pace with the
infl ation rate of college tuition costs.
While you might not match that
rate, increasing contributions each
year by as little as fi ve percent won’t
greatly affect your overall budget but
can have a considerable impact on
college savings.
Saving for college can seem like a
daunting task. Yet parents of young
children can quell their fears about
college tuition costs by making a
plan now and sticking to it until kids
are ready to enroll in a college or university.
How to earn a
college scholarship
College saving suggestions that won’t break the bank
/Scholarships.com
/CollegeBoard.com
/FastWeb.com