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College savings plans could be the best way to help fund your childs education. Learn more about the College 529 savings plan here.
Student loans are better than credit cards
You need some more money for college expenses this semester. Do you whip out a credit card to pay for your books, or do you apply for a federal or private loan? Well, consider the options -
* With a federal loan, your interest rate will be low (around 5%) and your payments will be deferred until 6-9 months after graduation.
* With a private loan, the interest rate will be slightly higher than with a federal loan but will still be lower than average. In addition, you will only need to make interest payments until after graduation.
* With a credit card, on the other hand, the interest rate can be as high as 21%. Interest begins accruing almost immediately, and you need to begin paying off the bill the next month.
This is not to say that credit cards do not have a place in your college life. It is good to have one national card (Visa, MasterCard, Discover) on hand to help you build a positive credit history and to provide security in emergencies. When you decide to apply for a card, compare annual fees, interest rates, and introductory offers. And to keep yourself out of debt, try to-
* Pay your balance each month to avoid interest charges
* Pay your bill on time to avoid late charges
* Avoid cash advances, which come with large finance charges and interest that begins accruing immediately.
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1 comments:
I agree that 529 college savings plans are the best way to save for college. However, I think that most individuals should focus on their retirement (401k, 403b, etc.) before they worry about 529 plans. If you have left over money, then invest in the colleges savings. Your children can always take out gov't student loans to pay for their education. You can't take out a loan to fund your retirement. Too many people don't have enough money to retire. Check out my site for more information.
http://www.dollarstep.com
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