As a parent, finding a way to pay for your child’s college education can be a serious uphill battle. This is especially the case if you are already scraping by. However, you want to think about the positive side of things: a degree from a university can offer a world of opportunities that will help your child grow through his or her life. A college setting will not only expose a world of knowledge – it will also give your child a new perspective. When it comes down to it, you can click here and there and all over the web hoping for a miracle, but the reality is that you want to get serious and realistic about where the money will come from. In some cases, borrowing is your best option. Here is how to borrow money for your child’s college education.
Start Off Early
When you borrow money for your child’s education, you want to start early. Ideally, you want to borrow a little bit and make it grow. This is why college savings accounts can be a great option. The money is there and it accrues interest over time, so you could have a decent nest egg by the time your child is ready to apply to schools.
Create a College Fund
Another option is to create a college fund. This is another fund that you could potentially start when your child is younger. You can borrow from friends and family and the put all the money into one pot. Ideally, you want to find a high interest yielding savings account, so that it grows over time. Whether your child wants to go to Duke University or Pepperdine, there should be enough money to cover tuition.
Talk to Your Banker
Talking to a banker will also help when you are trying to find ways to borrow money for your child’s college education. Ideally, though, you want to find a bank that you have known for a while, because some people in the financial industry may be partial – they are paid to hawk their bank’s products and services. A banker at a local institution, though, may have some very keen insight.
Don’t Borrow Against Your House
When you are borrowing money for your child’s college tuition, you don’t want to put your house on the block as collateral. You could lose your home if you go this route. This is especially the case if your mortgage isn’t fixed. In the future, you just don’t know what could happen. Sure, your child needs money in college – for things like textbooks and miscellaneous expenses – but you don’t want to lose an asset like a home in exchange.
Look for Scholarships
On top of everything, you may want to look into scholarships. You could combine your borrowed funds with a scholarship, which will reduce your financial burden when your child graduates. Luckily, there are a lot of scholarship programs that make it really easy to pay for school and for your child to get his or her degree.