College costs are spiraling to the point where a four-year major college education is approaching or exceeding the cost of your house. Like many Americans, you may not be able to foot the entire cost of a college education, but a prudent savings plan can reduce the amount of aid your child will have to seek and ultimately, how much debt they will graduate with.
What are the best methods for saving for college? Here are a few:
Some universities offer 529 prepaid tuition plans, which are not savings plans per se, but do save money long-term by locking in your tuition at current rates. If you know for sure your child is going to a participating university, this is a reasonable option.
It may be tempting, but do not sacrifice your retirement funds to save for college. There are other resources to deal with college costs and any incurred debt, but only you can handle your retirement costs, and you have a limited time to save.
People with better credit can save more for retirement because they pay less in interest. You can check your credit score and read your credit report for free within minutes by joining MoneyTips.
Originally Posted at: https://www.moneytips.com/guide-to-college-savings
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