College tuition costs continue to rise, outstripping the rate of inflation year in and year out. Add in room and board, fees, books, labs and related expenses and the annual cost of a private school education can easily top $30,000 even pushing up closer to $50,000 at select elite schools, far beyond what most families can afford.

The good news is that just like buying a car, the listed price isn’t what you’ll end up paying, particularly if you cannot afford the school. As automakers discount their products, most schools do the same even if they have many more applicants to choose from should you decide to go elsewhere.

But, before you decide to throw up your hands in disgust and consider Plan B, make sure that Plan A has been exhausted. Specifically, you’ll want to do the following:

Fill Out Your FAFSA – The Free Application For Student Aid (FAFSA) form should be filled out by all prospective and current college students to determine whether you’re eligible for student aid. This form is sent to the federal government which issues a Student Aid Report (SAR) which is sent to your college. The SAR will have your Expected Family Contribution (EFC) featured, an amount that can be much smaller than what the going rate is for college.

Get Merit Aid – Families who have too much money to qualify for student aid can still get assistance especially if your student is a high achiever and has a promising academic track record. Top grades means you have much academic potential – some schools recognize ability as an important reason to extend assistance.

Grants, Not Loans – When seeking assistance, you’ll want to get as much grant money as possible (which doesn’t have to be repaid) instead of relying upon loans (which can strap your student down financially for many years). Some colleges and universities are no-loan schools who offer grants to eligible families. This list includes select elite schools including most Ivy schools and private institutions such as Swarthmore and Amherst.

Think Diversity – If you are of an ethnic minority or of an under represented gender, you may find that you could be eligible for aid (or a better aid package) simply for being who you are. Colleges value diversity and will do whatever it takes to populate their student body with as diverse a group of people as possible.

Instead of worrying about how you will pay for college, consider the many ways you can get lop off thousands from the sticker price. Don’t forget to apply for scholarships which can be another way to get the money you need to pay for your education – more than seven billion dollars of college scholarship money is made available each year: get your share and reap the educational rewards!

Tags: college grants, college scholarships, college tuition, FAFSA, Free Application For Student Aid, merit aid, Student Loans

Higher education expenses continue to soar, worrying parents whose children are now winding their way through college. Talk to parents of children who are several years away from college and you can see the panic on their faces — costs are skyrocketing at a pace much higher than the rate of inflation and when you add in higher gas prices, surging food prices, and a litany of other increases, paying for college seems impossible.

529 College Savings Plans have helped many families begin to accumulate the money needed to pay for college education. For most families, 529 plans will not be enough as they’ll still have to hope for scholarships, grants, and loans to cover their remaining expenses.

Texas Leads The Way

Some states, however, are doing what they can to help families out with Texas leading the way by allowing parents to prepay college tuition, even if their child is years away from attending school.

The Texas Tuition Promise Fund allows families to lock in current tuition and required fees as public colleges in Texas. Specifically, the fund allows participants to:

• Protect themselves from rising college costs.

• Help fund their child’s attendance at any accredited public and private junior/community as well as 4-year colleges and universities throughout the country.

• Choose from a variety of saving and payment options.

Quoting Texas Comptroller Susan Combs, “The Texas Tuition Promise Fund gives families an exciting, flexible way to save for college that makes sense for their financial situation and higher education goals. You can prepay for a four-year degree, or you can prepay in small bites — for just a few classes or semesters. And, best of all, you don’t have to worry about future tuition increases, because you lock in current prices.”

Enrollment Now Under Way

Enrollment for the Texas plan has already begun and will continue through February 28, 2009. Parents of a newborn who want to provide funding for their child to go to community college, will only have to pay $15.16 per month through high school. Other plans cover the full cost of college at a Texas public university for one, two, three, or four years. Whatever plan parents choose will cover all costs regardless how much tuition and fees increase over the ensuing years.

Further Information

Texas Tuition Promise Fund

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Adv. — Have you set up a 529 College Savings Plan for your child yet? If not, you’ll want to do so today. Read about college savings plans, college scholarships, grant money, and other financial aid options available to help cover current and future college costs. Start early and you can save big; ensure that your children have everything they need to succeed in life.

Tags: 529 College Savings Plans, college costs, college scholarships, financial aid, Texas, Texas Tuition Promise Fund