Being a parent is not an easy task, especially when you are raising more than one child. From the very first day they are born, the money in your pocket starts leaking and that too at a rapid pace. Sooner or later, the time will come when your son or daughter after completing their schooling will take the next big step of their academic career i.e. getting into a college to pursue a degree. Well, this is something very necessary to prepare your ward for their future, so as a parent you will have to show full support financially as well as emotionally.
Well, most parents keep discussing with their children related to their college aspirations and about the financial matter from the very starting, so that their children can get a rough idea how much their parents can exactly afford. However, when it comes to your child career, you may expect nothing than the best and the money will not matter in that situation for sure. But, now as your child has finished schooling, he/she must be thinking about the college to get into, so it is important that you deal with things sensibly.
There are also some parents who don’t know how to deal with the situation properly and most probably they keep delaying the discussion. Here, we have prepared a list of questions that you can include in the discussion when your child is planning to go into a college. So, let us see them one by one.
Question 1:- What will be the financial effect on the family after your child joins the college?
When you live in a family, there is nothing like individuals and the decision of one person can affect other members of the family as well. If the student has to mind his/her mind of getting into a big college without even considering the financial consequences, then this can cause misbalance in the stability of the family. So, before making up the mind of getting into the college, it is important that you advise your child to think about the overall cost of attending the college, not just the tuition fees. Ask him/her to take other costs into consideration t such as travel, accommodation, food, and other expenses which you have to bear as the parent.
Question 2:- Do you have to seek financial assistance to manage the cost?
Well, there is an option of getting financial aid packages from the state government and the institution as well where the student is planning to apply, but there is no guarantee that it will be enough to cover the entire expenses. If you think that the expenses will be still too high for you to manage, then you can borrow a student debt. There are various direct lenders UK who offer great deals where you can get a competitive interest rate. Going for this will ensure that you don’t have to worry about your financial instability as it will be the student who will have to pay for the fee after completing the studies and getting a job. However, it will be better if you borrow as low as possible as in the end, it will help your child in completing the repayment faster.
Question 3:- Decide who will be paying the debt?
It is important to decide who will be paying the student loan before even applying for it. As a parent, you should make these things clear with your child in the starting, so that there is no confusion. This is necessary because whoever will pay the loan, that person will have to create a financial plan to project the future payments as per the income. To evaluate the cost that you will have to make on monthly basis, you can use a repayment estimator which will help you calculate what payments you will have to make to complete the debt. While applying for the loans for students, you might be asked to become the co-signer for the approval of the loan, but this can affect their credit score drastically.
Question 4:- How much you need to borrow?
One major thing that you need to decide is how much exactly you need to borrow to pay for the college fees and other expenses. This is where the role of parents comes into play as you can formulate the strategy where you won’t have to apply for a big amount. While taking debt from any lending resource, don’t go with the maximum amount that you are offered because the greater is the amount the bigger will be the stress of returning the debt. Think of other ways to manage the entire expenses of including the fees and if you have saved for your child education, then that could be brilliant.
As a parent it is your sole responsibility, it is your sole responsibility to help your child in making the right decision when picking a college. And for that, having an open and both sided discussion is the first step that you will have to take.