It is from the time of recession and also after things have settled, that families belonging to mid and low income level have been hard hit to muster their resources for paying college expenses for their children in 2013. It is through a number of options that now students are finding more comfortable in paying their college expenses.
How America Pays for College
A survey on How America Pays for College in 2013 revealed that higher education costs were covered by grants, scholarship and college savings plans. While parents have opted to extend their hours of working, sought credits on education tax and advised their children to stay at home instead of spending on boarding, students have ventured to find out avenues for getting loans from alternative sources of funding which is not repayable.
As a result of finding these financial resources families in the mid income group have been spending more on college expenses than before. Smarterbucks review is an effective helping hand offered by the Education Department of the country. Contributions also came from students borrowing on an average $ 380. It is due to slow economic recovery and effects of recession that parents have found it difficult to meet the expenses of higher education for their children by mustering their resources from monthly income, savings and investments which were not enough.
It is the 529 college savings plan that has made things easy for all to cover their expenses of higher education without any hiccup. The survey reveals that about 17% families have opted for this unique plan out of which around 26% come from high income group. Families from mid and low income group have also shown interest in taking up the plan which has come as a great relief for students and parents. The modus operandi of this 529 plan is controlled by State Government or educational institution where the program is in operation. Funds are set aside by families with option of withdrawing without paying any tax for the purpose of meeting college expenses.
Plans & Programs
Financial grants and scholarships has made up 30% of the cost of higher education for most families in the year 2013 and have been the ideal resources for funding the cost of college expenses without parents having to bear the burden from their income and savings. Scholarships awarded by colleges which are state based have come of immense help for students in obtaining a degree although non profitable organizations have come forward. Inspired by the outcome of this plan, students have opted for working part-time and parents have sought ways to increase their income. Students also took interest in completing their course work as early as possible in order to reduce the semesters and also opted to stay with their families or relatives in order to save on expenses on boarding.