Where to Find the Money for your Kids’ College Tuition

There are three ways of paying college tuition fees: 1) grants and scholarships (from the government, the school, or outside organizations) that need not be repaid; 2) student loans, which typically come with steep interest rates; and 3) financial support from the student’s parents. Option 1 is not equally available to all students, and as for option 2, deep debt from student loans has become so common that it is almost a cliche. To save their children from the burden of debt, many parents who have the financial wherewithal go for option 3.

But even among parents who can afford to put their children through college, most don’t simply pay out of pocket – for the majority of parents who choose option 3, the tens of thousands for tuition bills can be paid only through careful financial planning.

A recent article on Forbes gives useful advice to parents in this situation. The author addresses the pros and cons of using money from different types of retirement plan to pay for your children’s college. You can read the full article here.