Student loan debt has been plaguing millions of Americans. However, there are ways to avoid college debt that the parents should know.
Ways to avoid college debt (Photo: UChicago News)
Ways to Avoid College Debt
PBS reports that it is never too early for families, especially parents, to know these little hacks to save their children avoid college debts that have been affecting millions of Americans.
Thus, The Hill provided ways how to avoid college debts, and here are the following:
Be Educated About Student Debts
One of the ways to avoid college debts is to know what it is and what it is all about. For instance, student debt is the money owed on a loan taken out to pay for education expenses.
Now, how can parents avoid college debts by knowing what student debt is? Many teenagers have no knowledge of how much is needed to afford college, this alone can be a problem for the finances of the parents.
Experts recommend that parents discuss the full cost of college, including tuition, fees, books, and other necessary expenses, with their children.
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Make Sure You Have 529 Saving Accounts
The second way to avoid college debt is to have a long-term saving plan for parents. The 529 saving plan can start at the moment they have a child.
The 529 savings account can be used to save money for the children’s college. If a parent is thinking of sending their child to a 4-year college course, putting in as much as $300 a month should probably work until the child graduates.
Parents or Children Can Apply for a Scholarship
The third way to avoid college debt is to have scholarships.
Parents are strongly encouraged to apply for scholarships even if the parent has a 529 savings plan for their child. Scholarships can cover full rides of the college tuition.
Applying for Parent Plus Loans
The last way to avoid college debt is to apply for Parent Plus loans.
While Parent Plus loans are not necessarily recommended, parents who are able to afford this option are still eligible to apply. However, it should be noted that the resulting debt will be in the name of the parent rather than the student and will need to be repaid accordingly.
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