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The average cost to send a child to private college as topped $35,000 a year. Children entering kindergarten can expect to pay 75 % more by the time they are ready to begin college.
Seventy-two percent of all private college graduates earning a bachelor’s degree had some student loan debt and sixty-two percent for public universities.
Many parents have unrealistic view of how much debt they will eventually have to take on. More than half of parents think that their children will have substantial portion of their children education paid by scholarships which might not be the case.
Parental debt can delay retirement in many cases, whether the money is borrowed from a third party or a retirement fund.
It is recommended that college students should take some time off or take a lighter course load in order to earn money and minimize debt, even if it takes longer to get a degree. There is no guarantee that a college education will lead to a better paying career.
Another consideration is to pick a less expensive school, perhaps a state college over a private one.
The best way to minimize college debt is to start saving early and build up a large education fund.
Consider Education IRA’s, 529 plans and mutual fund saving programs.
Daniel Iuculano
