For a family of four in the United States, you may be considered to be on the high end of middle class if you earn between $50,000 and $100,000. But you may not feel like you’re on the high end of things if you have a big mortgage payment, and you have two kids in high school.
With college looming, how can your family deal with the serious lack of financial aid for middle to higher income earning households?
The Reason It’s Tough to Get Financial Aid
Most financial aid is reserved for families that are low income. You may get something in the $50,000 to $100,000 range, but it won’t be much. On the other end of the spectrum, you have to make more than $100,000 per year to get tax credits to offset how much you’re going to spending on college tuition.
This creates a gap that households making more than the median income ($53,000), but not double the median income, fall into. If the college you plan to attend costs $50,000 per year, but you only qualify for a few thousand in financial aid, you’re looking at a student loan to cover nearly $200,000. That’s not the sort of deficit that you want to start life out with.
Here are three tips to help families bridge the gap:
- Start an educational savings account when your kids are young
- Apply for financial aid early (some grants/scholarships are available to freshmen)
- Get assistance for financial planning
Your Source for College Admissions and Financial Planning
College Planning Source can help you get your life off to a better start by providing financial planning assistance for kids who intend to go to a state college or private university. Contact us today by calling 858.676.0700 or by filling out our online contact form.