For many families—even those with significant savings and means—the cost of college has become daunting. According to FinAid, the nation’s current student debt amount is rising at a rate of $2,698.30 per second.
CollegeBoard reports that the average cost of tuition and fees with room and board is now $20,770 per year for public, four-year in-state school and $46,950 for private nonprofit four-year school—and these figures continue to grow faster than the rate of inflation.
This has caused families and their students to stretch all financial means available, sometimes without fully understanding their options.
Independent nonprofit organization The Institute for College Access and Success, reports on the wide range of average debt by state in their Project on Student Debt, and their other published data sets report that private loan borrowing is increasing, asserting that almost half of all private loan borrowers (by Stafford Loan Usage) could be using more affordable federal loans.
If you are unable to fully fund a college student’s education with your own resources, how can you best avoid having to take on overwhelming debt?