Emma Gutierrez: Hello! I'm Emma Gutierrez with Wells Fargo & Company. Today we're taking a look at the many ways you can pay for college and other educational costs.
Deciding how to pay for a college education is an important financial decision. Since the cost of education continues to increase we should plan ahead and as soon as possible. The amount of money you'll need for school depends on many factors. The school you choose whether it's public or private, whether you'll be completing a two-year or four year program and whether you'll be living at home or at school.
The total price tag can vary significant. When comparing schools, you should consider more than just cost. If one school costs more than another it doesn't necessarily guarantee the quality of education will be better. Consider other factors such as which school has a stronger program in your favorite subjects. Which one has a better reputation and which has the kind of environment you think you'll enjoy. Once you choose a school you can determine how much money you'll need to pay for the two-year or four-year degree you want. It's always a good idea to start saving for college as soon as you can. Parents impact their student's financial aid in many ways. Their employers can be a source of education aid or scholarships. If parents served in a military students might be able to take advantage of veteran's benefits in the form of a scholarship.
Most financial institutions across the country offer two US government programs that allow adults to set aside savings for their children or grandchildren's education. The first is an Education Savings Account and the other is the 529 Plan. Both education savings accounts and state sponsored college savings plans are different than regular savings accounts. The account holder is actually placing money into investments. Instead of earning interest on their deposits they make a profit if their investments go up in value. After Savings Accounts the next place to look for college funds is grants, scholarships and student loans. Money you're given, money you earned and money you borrow. To qualify for some types of financial aid you may need to apply through the US Department of Education with the Free Application for Federal Student Aid, FAFSA. If apply for financial aid each school that accepts you for admission will send you a letter that lists how much of each type of financial aid you're eligible to receive. The list may include grants, scholarships, a work-study program and loans. A college degree can be expensive, but fortunately there are a lot of ways to get the funds you need to pay for it.