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Saving for College
By Lori B. Murray
Paying for college may be one of the biggest expenses you and your family will ever have to face. In addition to making you a fanatic about saving, pursuing college funds may also turn you into a super sleuth.
Setting Goals
Eighteen-year-old Martin Thompson of Engelwood, CO knew at an early age that he would need to get creative about paying for college. For years he saved birthday money and whatever he earned mowing lawns so he could invest in the stock market. Martin’s hard work and commitment to a goal paid off. Along with his sister, he purchased stock in a cable company at $19 a share, then watched it rise to $42 a share.
With plans to attend college in less than a year, Martin continues to invest in mutual funds. "It’s easy not to spend it when you have it invested," says Martin, who adds that he also plans to get a part-time job during college to help pay expenses.
Creative Resources
According to Trent Anderson, contributing
editor of Kaplan Educational Center’s You Can Afford College (Simon & Schuster, 1998), you need to
get creative to generate more college funds. Here’s how:
1. Negotiate. Apply to a few more schools than you are interested in to generate additional award letters. Then you’ll have negotiating power that sounds like this: "You are on my list of top choices. However, your award package isn’t as good as I had hoped." Who knows — the college may enhance its original offer.
2. Cut expenses. Attend a less expensive community college or state school the first two years. Then transfer to another school where you’ll receive your diploma.
3. Work part-time. Earn money while you go to school. Says Trent, "Live like a student while you are a student, so you don’t have to live like a student after you graduate."
4. Resist debt. Because students are attractive "spenders," they are easily approved for credit cards. Remember that this is not free money, and it may take years to repay the debt.
5. Plan ahead. Think about your career goals. If you are sure that you’ll be working toward a graduate degree, save money by attending a less expensive undergraduate school.
6. Live cheap. Develop creative ways to defer expenses. Trent lived in his parents’ motor home for a year while attending school in California.
7. Apply for scholarships. Begin your search during high school by getting involved in community organizations that award scholarships. Investigate your parents’ place of employment. Financial assistance may be offered to employee dependents.
If you follow these steps and work with a reputable scholarship organization, you’ll be more likely to afford the college of your dreams.