With the cost of college rising every year, it is no wonder parents and kids are worried about paying for all of it.  Many times the conversation about how to pay for college starts in high school and not earlier like it should.  And it is even more common for parents to exclude their kids in this conversation.  Then, when the time comes for students to choose a college and analyze their financial aid letters, they have an idea of how much money their parents will contribute to these costs. This is usually different than the amount their parents have decided to contribute.  It is crucial for parents and kids to have this conversation way before junior year.  Ideally, parents would begin planning for college at birth by starting a 529 or another savings plan.  As the student goes through elementary and middle school, parents would talk with their kid about expectations related to college.  These conversations should include whether the parents are expecting their kid to go to college and if the kid has aspirations of going to college.  They should also talk about how college will be financed.  Will the parents pay for it completely? Does the child expect to contribute something?

A recent study by College Savings Foundation found that 82% of students believe it is their responsibility to pay for at least part of their higher education.  71% of students said they would pay for at least 25% of college costs. While this is up from 53% the previous year, 25% of college costs can be a pretty big number and if students do not have a plan for saving, they won't be able to actually contribute this money.  With cost of attendance, for one year at private 4 year colleges averaging $46,272, it is essential that families begin talking about college costs, financing, and responsibilities before junior year.  If your student expects to pay for at least 25% of college costs each year, they will need $11,000 a year. They'll need to save this amount before they graduate high school but that is just for one year of college. They'll then need a solid plan for how they'll save for their contribution of the next 3 years.  

So how can students save? Students can get a part-time job during the school year, making sure to put away most of this money for their college fund. They could also work more hours during the summer and do the same with their paycheck. Not only is this great for their savings, it will also show admissions officers that the student is responsible, is able to manage their time, and is able to juggle multiple responsibilities at the same time like school and work.  Students who do this could save $3,000-$7,000 a year! Students can also contribute to their own 529 plan with these funds!  Students should also be on the lookout for scholarships for kids their age. While there aren't as many scholarships for 9th or 10th graders as there are for seniors, there are still great scholarships for them!  Students should take the initiative and research these scholarships and apply for them! A few helpful sites: www.fastweb.com ; https://colleges.niche.com/ ; www.cappex.com.

How can parents save and make college more affordable? Well, it is important to make sure you fill out the FAFSA. This is done in the student's senior year of high school. The FAFSA is the Free Application for Federal Student Aid. By filling this out, you will automatically qualify your student for state and federal grants and some scholarships. Check to see if your employer offers tuition assistance program or scholarships for the kids of employees. Also check with your union, church, or any professional organizations  you are a part of and ask them if they offer scholarships for the kids of members.  Start a 529 savings plan and ask friends and family to contribute to it instead of buy gifts for holidays and birthdays.  This might seem odd to some people but the money really adds up!

At Riley College Advising, we counsel families through the financial aid process and help them make realistic plans for paying for college.  We're here to help make this stressful process a lot more manageable and even, enjoyable. 

Thinking about majors can be grueling for kids and parents. As parents, we want to make sure our kids will go to college and then get a great job that fulfills them and pays well. This, as we know, is not always reality.  When considering majors, students and parents should think about life after college! What can someone with this major do in the working world? The US Department of Labor has a site called the Occupational Outlook Handbook that allows users to search for careers based on median pay, education, number of new jobs, growth rate, and on-the-job training.  It also provides lists of careers with highest paying, fastest growing, and most new jobs.  Topping the list of highest paying are Physicians, Surgeons and all other with a median salary of $187,200.  Wind turbine service technicians have the highest projected growth rate coming in a 108% and personal care aids have the highest number of new jobs. Users can also search by career and bring up profiles that show  lots of details about the job including work environment, how to become one, pay, job outlook, and similar occupations.  

Another great site is My Next Move which provides similar data to the Department of Labor site but it is a little easier to use.  It also allows users to search by industry and has a section for people who do not know what they want to do! This sections includes an interest profiling quiz and then provides users with a list of potential careers. Definitely helpful for students who are completely unsure about what they want to do with their lives. 

A 529 plan is a plan operated by a state or educational institution with tax advantages and possible other incentives to make it easier to save for college or other post-secondary training for a child or grandchild.  Money put in these accounts are NOT subject to federal tax and usually not subject to state tax. Contributions to these plans are not tax deductible.  

​What can a 529 be used for? Beneficiaries can use the money for the cost of any computer technology, related equipment and/or related services such as internet access.   The funds are most commonly used to pay for college, or an "eligible institution" which includes college, university, vocational school, or other postsecondary institutions that the government deems eligible to participate.

Who can set up a 529 plan? Anyone can set up a 529 plan and name anyone as a beneficiary- a relative, a friend, even yourself! There are no income requirements and there are no limits to the number of plans you can set up!

There are two kinds of 529 plans: pre-paid tuition plans and college savings plans. All 50 states sponsor at least 1 type of 529. Some private colleges and universities offer pre-paid tuition plans.  While there are many differences between the two types of plans, the biggest one is that the pre-paid plans offer less flexibility in where the funds can be used.  Use this article to get more info on the differences between the two plans. 

There are a few surprising things you can do with a 529 plan like use it for yourself! Some parents decide to change careers or go back to school. They can use the funds from the 529 plan if they change the beneficiary. Use this article to find out more surprising tips on using a 529!