College Savings Options

June 16, 2020

For many, a college education is something they dream of, and with proper planning, it can become a reality. According to The Federal Reserve (May 2019) the typical amount of education debt in 2018, among those with any outstanding balances, was between $20,000 and $24,999. Ohio residents are slightly above the national average debt ($28,650) at $30,629 at the time of graduation with 62% of students having some form of college loan (The Institute for College Access & Success, 2018). Pre-planning for the cost of a college education can significantly reduce the burden a student loan may be on a college graduate entering the workforce.

Starting to save for college is a great goal to aspire for, but it should not be the only goal. Financial experts recommend saving for retirement should be a priority. Only with additional funds, should a college savings be pursued. Students have many avenues to help reduce the cost of college, like grants, scholarships, and work-study programs, but retirement planning should not be neglected.

There are many ways that parents, grandparents, and other interested persons can save for a child’s educational expenses. When choosing an option there are several factors to be considered:

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