How to Pay for College – 3 Myths That Have Been Around Long Enough

How to Pay for College – 3 Myths That Have Been Around Long Enough

Is the thought of paying for college leaving you awake at night? Are you dreading what life might look like financially if you do decide to cover your child’s college education expenses? Before throwing in the towel, discover 3 myths that may very well be holding you back and the facts that may give you hope.

Myth #1: A College Education is Too Expensive

This myth is funny because it has spread in the media like wild. Consider this; let’s say I was a school teacher earning $44,000 a year. I decide to purchase a new car and naturally I walk into the “so called” best car dealership in town. In my town this happens to be a Rolls Royce dealership. I look around and soon discover that the average price of the most basic model is $295,850. I walk away shaking my head telling everyone who will listen, “a car is too expensive”.

The Truth – A College Education is NOT Too Expensive

The fact is that the specific college your child is interested in may be too expensive for your budget but it is not too expensive for the right buyer. Just like the car example above, if we were friends, would you agree with me that cars in this town are just too expensive or would you tell me “Hey Buckwheat, keep shopping at the 5,000 other dealerships in this city.

Myth #2: Student Loans Are a Necessary Evil

This myth is traditionally spread by professionals who really should know better. In an effort to take their advice, many financial aid professionals make these kinds of statements to make you as a parent more comfortable with debt.

The Truth – Your child can obtain a debt free degree. As the financial landscape shifts in this country, parents are rightfully becoming more skeptical about taking on excess debt. Sadly, when asked the question about how to pay for college, many parents are being advised by some financial aid counselors to opt for excessive student loans that are totally unnecessary.

Myth #3: I Must Come Up With All Tuition Money At Once

This myth is a good one because it preys on a person’s lack of knowledge about how payments are processed for college expenses. Many people think that they must have the full amount of the cost of tuition, room and board, and books all at once.

The Truth – In most cases you will not need to have 100% of the money for your child’s education rather you may be able to setup an installment payment plan with the university. This helps because in many cases, as the payments are spread out over time, it now becomes possible to pay for a college education without loans.