How to Manage College Costs for Multiple Kids

How to Manage College Costs for Multiple Kids

BIG Ideas:

  • College is a big investment but can help your children increase their learning potential and take advantage of enhanced career opportunities.
  • You never want to sacrifice your own financial security to pay for college for your children.
  • 529 College Savings Plans are a great way to save for college, offering tax-free withdrawals and earnings.

As parents, we want our children to have the very best in life, including a bright and shiny future. One way to help them secure that future is a college education.

But while college is a great investment that will offer your children higher earning potential and enhanced career opportunities, it’s a huge expense, especially when you have multiple children.

At Brazos, we understand the costs involved with college and want to help make it affordable for all your children. That’s why we’re sharing the following strategies to help you manage the financial challenges of sending multiple kids to college.

  • Save for college with a 529 plan. A 529 College Savings Plan is a tax-advantaged way to pay for college. When you contribute to a 529 plan with after-tax dollars, your earnings grow tax-deferred (consult your tax advisor), helping your savings add up quickly.

    Then, when your children are ready for school, you can make tax-free withdrawals to pay for qualified educational expenses, such as tuition, room & board, fees, and equipment related to school.

    You can set up a 529 plan for each child with each one listed as a beneficiary. You do, however, have the flexibility to change a beneficiary. So, if one of your children decides not to attend school or receives a full scholarship, you can change beneficiaries to another child.

    The key to saving with a 529 plan is to start early and make regular contributions.
  • Apply for scholarships and grants. If you like the sound of “FREE MONEY” to help with the cost of college, you’ll want your child to research scholarships and grants available through the federal government, schools, and other organizations.

    At Brazos, for example, we award a $5,000 scholarship each month to a Texas student through the Murray J. Watson, Jr. scholarship. We also offer the Brazos $1,000 No Essay Scholarship which only takes one minute to enter! Learn more about how to find other scholarships and grants.
  • Take out a parent PLUS loan. A parent loan for undergraduate students or PLUS loan is a loan offered by the federal government to help parents afford the cost of college. With a PLUS loan, you can borrow up to the cost of education minus any financial aid. Keep in mind that PLUS loans offer higher interest rates than federal student loans.

  • Start with community colleges. Having your children attend a community college and live at home for the first two years is a great way to save on college costs. Then, they can transfer to four-year colleges or universities to get their degrees at a significantly lower cost than if they attended for the full four years.

  • Ask your children to contribute. You may want your children to have the best education possible, but you never want to sacrifice your financial security to pay for college.

    You may, for example, need your children to help share the cost of college, whether it’s taking out loans or contributing money they earn with their summer job or work-study. Or you may need them to choose a less expensive option.

    The most important thing you can do is sit down and have “the money talk” with your children, so you can set realistic expectations about what you can afford and how much they need to contribute.
  • Seek employment with a college or university. If you or your spouse work for a college or university, you may be able to take advantage of discounts or even FREE TUITION depending on the school.
  • Apply for a private loan. If after you’ve exhausted financial aid, scholarships, and savings and still need help financing college, you can apply for a private student loan to help bridge the gap. Private student loans vary significantly by lender, so make sure you shop around. We just so happen to know a good private lender: us!

Sending your children to college is exciting; paying for it, however, can be stressful. Make sure you look at all your options and make informed financial decisions that ensure you don’t spend more than you can afford and put your financial future at risk.

Brazos is Here to Make College Possible For Your Children

For more than 40 years, Brazos Higher Education has been helping make education more affordable for students. As a Texas non-profit, we offer great rates and no fees on private student loans. Contact us to learn more.