A Guide to Establishing a Budget for College Students

For many parents, sending their siblings to college is greatly a concern. Financial support plays a big role in sending one’s son or daughter to college because tuition fees in college is really costly. According to the U.S. Department of Education, college can cost as much as $28,000 per year. Although costs vary depending on the institution, the Committee on Education and the Workforce reports that financial issues keep nearly 50 percent of college-qualified high school graduates from attending a four-year institution, and 22 percent don't go at all. The committee projects that within the next 10 years, more than 2 million college-qualified students will not be able to attend an institution of higher learning.

The best thing for any parent or student preparing for college to do is to start saving early. There are also many prepaid college plans to help parents save for college. Another option is to apply for scholarships, grants and federal financial aid. These are tax-free and doesn't have to be repaid. Students also have the advantage of several banks offering premium level credit cards on the basis of their student status or consider taking out loans. But that's not always the way to live a better life because even those who qualify for grants or scholarships have to borrow heavily to come up with the balance. And according to a recent survey conducted by Public Agenda and the National Center for Public Policy and Higher Education, eight out of ten people agree that students are forced to borrow way too much to cover the gap.

Families can save money by not incurring late fees. It is recommended that students apply for any and everything ON TIME, whether it is registration or the application process to enroll in school, because universities usually have a deadline, and if that deadline isn't met, there may be an increase in the fee that is charged to the student and also even in registration cases. Check the institution's financial aid department to see if the school offers any discounts.

Pat Callan, President of the National Center for Public Policy and Higher Education, says lawmakers and educational thinkers are just starting to take notice of tuition increases and the other costs of higher education, which are well above inflation levels. Perhaps something can be done about the fleecing of America's college students.

Meanwhile, eight out of ten people now agree that students are borrowing too much for college. See statistics below:

Student Borrowing Statistics

Institution Level	% Students Borrowing	Average Debt
2 Year	37.4%	$9,897
4 Year	65.6%	$19,202
Masters	69.3%	$32,858
Doctoral	58.3%	$53,405
MBA	63.6%	$41,687
Professional Degree	88.4%	$93,134
Medicine	95%	$125,819
Law	89.7%	$80,754

*Source: FinAid.org


For more information and cost-cutting tips, check out the U.S. Department of Education's Web site at www.ed.gov.