I talk to families every day who have no plan on how to pay for college. When I ask the question, “How important is a scholarship when choosing your child’s college?” The typical answer is, “a scholarship is real important, but s/he is going to college no matter what.” What they mean is that they are willing to borrow all kinds of money, go into all kinds of debt, to make sure the all important degree is obtained. It is clear from these answers that these families are not aware of the quickly changing landscape in lending practices now.
In this article in yesterday’s Washington Post, the rising costs of college and the reduced availability of student loans is documented. The key sentence is, “The upheaval in financial markets did not just eliminate generous lending for home buyers; it also ended an era of easy credit for students and their families facing the soaring cost of a college degree.” Read the entire article. If you need a plan for paying for college and a student who is also a good athlete and enjoys playing their sport, that may be a way to reduce those student loans. To learn more about opening up opportunities to play sports in college so your child’s education can be funded by means other than student loans, go here. If your child is an 8th grader or older and you haven’t begun to plan for college expenses, you’re already late.