How to pay for college expenses
College is getting more expensive by the day and we feel that eventually this trend will change but for now it certainly has become the new normal. Here are some funding sources that we have used in the past in order to pay for college:
- 529 accounts or other college accounts that are similar
- Trust earnings
- Earnings from old money such as CDís or investment accounts
- College loans (subsidized is better)
- Home equity loans
- Money that is currently in an IRA
- Cash value of life insurance
- Rental property income
Obviously there are many more ways to pay for college but this is just a short list. We also like to encourage parents to think outside the box when it comes to college. Many alternatives might exist that might allow your child to enjoy many of the benefits that college offers without all the expense.
As most things when it comes to financial matters; starting early and having a plan is always a good idea. Waiting until your child is 17 or 18 can make the choice rushed and difficult.