saving for college
Those three words start so many conversations and can cause so much stress. We know (we’re going through it too!)
The following are little pearls of wisdom we’ve gathered over the years, coupled with current thinking about lowering the weight of college debt on your shoulders.
We’ve got the financial tools you’ll need—including tax-free withdrawals on Education IRAs and tax-deferred NextGen College Investing Plans®—plus advice and expertise to show you how to plan successfully. Check it out, then drop by your nearest Norway Savings branch soon.
coming up with a plan
a big number
Across the U.S., public colleges cost an average of $32,405 a year for tuition, fees, books, and room and board. Private colleges often cost twice as much.
When saving or investing for college, the key is to start saving or investing early— preferably as soon as your child is born. By doing so, you will be able to take advantage of the power of compounding interest. What do we mean? Read on.
be clear on what is coming
Whatever you do, take a clear-eyed look at the road ahead. And do it soon. Because one day, your children will be stepping across the platform to receive their diplomas—and you’ll be glad you could help make it possible.
federal financial aid 101
Before you know how much you need to borrow, you’ll need to find out how much federal aid you or your student is eligible for. We’ve provided some helpful information below to get you started!
the FAFSA: five valuable letters
The Free Application for Federal Student Aid (FAFSA) allows the U.S. government to determine a student’s financial need. Any student interested in federal aid must fill out the FAFSA. Depending on the cost of attendance and available resources, a student may be eligible for government-subsidized loans like the Stafford loan. That means that if eligibility requirements are met, the government will pay the interest on a subsidized Stafford loan until a student graduates!
By filling out the FAFSA, you automatically apply for the full range of available federal loans (excepting PLUS loans). The Perkins, Stafford and PLUS loans are all standard federal loans, each with its own characteristics.
grants and scholarships—free money!
Federal grants like the PELL and FSEOG are awarded based on financial need as calculated by the FAFSA. If you qualify, take them—they don’t have to be repaid!
Students, don’t discount scholarships! There are many different types available for all kinds of people. Finding one that’s just right for you can be a valuable source of income for your family. FastWeb is a good place to start your search.
don’t be afraid to get help
You’re not alone! Read up—and talk with people who have been through this already. Norway Savings is proud to offer the NextGen College Investment Plan® to help you pay for your child’s education. When the time is right, we hope you’ll come see us. To speak to a Norway associate about planning for college, visit your local Norway Savings branch. We’ll help you make paying for college a reality.