SACRAMENTO, Calif. — Even if your kids are years away from entering college, you can start saving now with a 529 plan.
As your student reaches high school, parents can start getting focused on preparing for college. They can also take advanced placement courses that allow students to get college credit while in high school.
In their senior year, it’ll be important for them to complete the “Free Application for Student Aid” (FAFSA) on time.
“If you don't complete on time at UC Davis, that could be as much as a $20,000 swing,” said Deborah Agee, executive director of Financial Aid and Scholarships at UC Davis.
Agee recommends high school seniors be aggressive in applying for scholarships.
Keep in mind, the little things in life can add up, so be sure your student learns how to create a budget.
“Don't borrow unless you need to borrow," said Agee. "But if you do need to borrow, you should, and you shouldn't be afraid of it. But do not use credit cards instead of student loans.’
Agee said student loans are going to offer you the best interest rates and offer the best borrower protections of any financial instrument you’ll use.
For current college students, it's not too late to keep your costs down by focusing on your living expenses and finishing your degree as soon as you can.
“Carry a full load each term, that's 15 hours a term and so that you can graduate in four years because every term that you stay longer just starts increasing the cost," said Agee. "Also, it is an opportunity cost, because you could have been working and making an income at that time, or moving on to graduate school.”
When it comes to costs, where you go to school also matters. For example, going to an in-state college or university can also save you thousands of dollars in tuition and fees compared to attending a private university.
