Can you Bank on a College Scholarship? How To Plan for College
I have been fielding many questions lately about college planning. The cost of college is appreciating at a higher rate than inflation so that means saving for college is a tougher task than one might think. Luckily, outside funding sources are available through scholarships, grants, and loans. However, don’t let these options fool you in to a false sense of security. The percentage of students who receive scholarships and grants is extremely low.
Mark Kantrowitz, the author of “Secrets to Winning a Scholarship” states the following:
Of the students enrolled full time at four year colleges, 0.3% receive enough money to cover the full cost of attendance
1 in 10 receive any aid at all and the average is about $2800/year
There are more statistics listed in the attached Washington Post article here
I have attached a sample analysis that provides realistic planning to ensure that a family is aware of the potential cost of college and what it will take to cover it. In the attached analysis, we have assumed there are three children, they attend three different universities, they each have different funding sources, and the funding sources have different rates of growth based on their respective accounts.
We are happy to put this analysis together for you, your kids, or your grandkids. If you think it would be helpful, please reach out. Whether you are currently working with us or not, we think it is important that you plan for your kids’ future. Please let us know if we can help. (I have attached 6 fast facts about 529 Plans from Morningstar as well)
Education Plan Analysis
Washington Post Article