Figuring out how to pay for college is one of the most difficult choices facing parents and their kids right now. The news is full of stories about crippling student debt. Many families have no choice about asking their kids to contribute or taking out loans.
Even for parents who can cover all or most of the cost of a college education, there are still decisions to be made. Yes, students have a lot to manage just with classes, but should they still be responsible for some of the cost?
If you want to make sure your kids have debt-free access to a college education, there are still ways to keep them responsible and make sure they understand the cost – and value – of their degree.
1. Working while studying
This is the most straightforward option. You cover the costs of school itself and leave your student responsible for personal expenses. If they want new clothes or beer money, it’s their job to fund it from their own earnings. Your student can then decide how much they want to work – once day a week, twice a week, over the summer – based on how much spending money is important to them. This is a great approach for students who have not had to be financially responsible for their own expenses before college.
2. Covering rent and meals
If your student has experience working through high school and some savings, putting them in charge of their living expenses – rent or dorm costs and meals – can be a great way for them to contribute. Because rent or dorm costs are set amounts, and most colleges offer meal plans, your student knows exactly how much they need to contribute per semester and can budget accordingly.
3. Making up the difference
If your student has a high chance of getting scholarships, already has savings, or is able to work steadily without compromising their academics, try setting an amount that you will contribute per year and having them make up the difference. By making it a yearly figure, the amount that your student has to contribute is predictable and manageable. This is a great approach for students with work experience and teaches extremely valuable time management skills.
4. Finish in “x” years
If your student is entering college with a high number of AP or IB credits, already has an associates’ degree, or has already taken college credits, set a number of years that you will pay for. If they only need three more years of courses to get a degree, make it clear that you will pay for those three years and no more. The cost of any time beyond that is their responsibility. This is a great approach for someone who has a strong academic record and is very school-focused, but with limited work experience.
5. GPA penalties
This can also be called the “everyone works equally hard at different jobs” approach. You work to pay the bills, and your student works to keep their GPA at a certain level. If their GPA drops below that level – say, a 2.5 – then they are responsible for paying for the next semester of college. If their grades go back up, you resume paying. This requires paying attention to your student’s grades and making the parameters very clear up front, but can also be a great way to motivate your student to stay focused on academics.
It can be tough as a parent to ask your kids to step up financially. But having your student be aware of the cost of college and involved in paying for it – through hard academic work, a steady job during the school year, or working over the summer – will keep them invested in their studies. Not only that, but you will be teaching them valuable work and budgeting skills that will serve them well once they graduate and through the rest of their lives.
guest post by Katharine Paljug
