As soon as your child is born into the world, you are immediately told that it is best to save money for college early. Saving money for college is, after all, expensive and you’d really need an arm and a leg so your child can have a bright future ahead of him. But take heed as there are some sectors in the society which say that you shouldn’t put too much of your funds into that college degree.
Here are some of the reasons why.
1. Having money in college can bring down your financial aid- It all depends on the need calculated by the financial aid offices. Some public schools often use the FAFSA while the private schools use the CSS/PROFILE. Whatever the method used, having more savings in your college years mean lesser financial aid. This means, too, that you have lesser need. In short, two families with the same income can receive different financial aid – the family with more savings means they have lesser financial aid. Retirement funds, however, are exempted from being included in these calculations so it is advised to stock up on your retirement rather than on your college funds. When it comes to student’s assets, this is also included in the computations so when you accidentally put in student’s assets under the name of your child, then you will only receive lesser financial aid.
2. Working in college can be a lot beneficial for the student- According to the US Department of Labor, college students who are actually balancing their study life ad their work life actually do better in school than do the most. This is no surprise, however, as those who work at the same time can manage their time better and think more about their investment in college – they are known to value their college education. Plus, they have more job opportunities when they graduate from college since they are already familiar not only with their work load but the ins and outs of working, managing their time and the value of money.
3. Not everyone will go to college- Saving money…