If you want your children to attend college, then your child needs adequate financial support. Joe DePaulo, the co-founder and Chief Executive Officer of the College Ave Student Loans company, has recommended nine useful tips for parents. Following these tips will help parents to sponsor their kids' education- even if there is inadequate amount of money in the bank.
Honest reality is preferable
Financial discussion can be a tough affair for any child. This can be brutal and can smash any child's dream to attend a top tier university. In such cases, it literally pays to be honest. Parents must explain to their children their capacity to pay while continuing to save money for their own retirement. When children are involved in the planning process, their outlook also becomes much better. These discussions make them a better person.
Parents should start to plan for their child's college education while he or she is still at high school. This is more important if parents are unsure about how to finance their children's higher education. If both parents and children are well prepared, then financial decision making and application will be much simpler. It is with a good reason that DePaulo recommends that parents should start making plans during their child's high school sophomore year. If this is not possible, then the junior year should be the latest. He says that it is important to guide the children towards a bouquet of choices.
Future earnings are important
If parents need to borrow any amount of money, it must be done with the knowledge that the loan can be paid back. To give an example, if the child wishes to have a career where earning potential is lower, the loan amount must also reflect that. Parents must do the research so that costs are accurately anticipated for the entire college duration.
Networking is useful
Parents could be unsure when it comes to selecting the best path for their child. It is important to talk to parents whose children are on the same trajectory as the child. If this is done, the future becomes much clearer. Parents could find out that a two year duration degree makes an excellent addition to the child's future career. DePaulo recommends parents to move out of the comfort zone in case the network of known people does not have the needed expertise. Counselors are a good bet in this regard.