College Funding

It's never too early to start planning for a child's future college education. When you give yourself a head start, your money can help your child reach her or his education goals.

Begin Saving Early

If you begin to save money at the birth of your child, even a very small sum each month, you can accumulate a considerable amount over time. Both the federal and state governments have made it much easier to save for college.

Most colleges expect parents and students to contribute their share. Typical financial aid packages also rely on government subsidized Federal Student Aid grants and loans and college payment plans. You can subsidize these plans with other funding options such as:

Custodial Accounts

These accounts allow you to save funds in your child’s name as allowed under the Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA). The custodian (usually the parent) controls the account and makes the investment decisions until the child reaches a certain age set by state law. These accounts are considered the child’s asset and are subject to tax.

Scholarships and Financial Aid

It is recommended that parents/students begin searching for scholarships in the student’s junior year of high school.

Begin with high school guidance counselors. They have access to a variety of scholarship opportunities. Or, if you have a pretty good idea of the college, learn as much as you can about possible grants from the school.

Because there is such a wide variety of scholarships (some of which are never awarded), the Internet is a valuable resource. When completing informational forms on the Web, students are encouraged to be as vague as possible about their interests and lifestyle. They will get more hits and can then choose the ones that fit their needs and interests.

Experts advise that the Free Application for Federal Student Aid (FAFSA) form is completed during the student’s senior year of high school. This is a federal government form used to determine a student’s eligibility for federal aid, which includes grants, scholarships, work-study, and loans. It uses numbers from tax returns, usually of both student and parent, as well as any assets owned by either. The form can be completed on the Web by going to www.FAFSA.ed.gov.

When a college choice has been made, here are a few questions to ask of its financial aid officers. 

  • Including tuition, fees, books, room and board, etc., what is the average total cost to attend your school?
  • What type of financial aid do you offer?
  • If I receive any scholarships, does this affect my financial aid package? 
  • Do you offer need-based and/or meritbased aid and what are the requirements? 
  • Do you offer a tuition payment plan? If so, do you charge service fees? 
  • Does financial aid affect admission decisions? 
  • What are the deadlines for applying for aid and when will I be notified of your decision? 
  • What are the academic requirements of receiving and renewing financial aid?

 

Did you know that Royal Neighbors beneficial members, or those who are insured or own an annuity with Royal Neighbors, are eligible to apply for a scholarship? Royal Neighbors offers scholarships for high school seniors and older students returning to school after spending some time in the workforce. Read additional information about the Royal Neighbors Scholarships.