We, as parents, always want best for our children especially when it comes to education. We believe we must give our children the opportunity to get the “best education” out there. This is the reason why so many college students graduate with a very high education debt and no job. If you ask the college students and their parents if it was worth accumulating student debt into $100,000’s, they will quickly reply back with a firm ”No”. Still more and more students turn to student loan or even their parents life savings to fund their college education and I promise you it will not stop because our tradition is to send our kids to the best university despite high costs.
Even though I believe it is not worth accumulating high student loan to get a college degree, I still believe our children must get college education. There are options by staying with in-state public colleges and universities, which would be around $20,000 total cost per year. I heard about college prepayment programs that is provided by your state and it only covers the tuition cost. Basically, you would be paying today’s college tuition rate for 4 years now, which is only applicable to in-state public colleges and universities. The benefit here is that as the college cost increase every year, your tuition will be fixed until your children go to college. There are also 529 plans where you can withdraw tax deferred.