Help Your Kids Avoid Student Loan Debt

This article appeared in the Summer 2018 edition of the Mountain America Credit Union Newsletter

College is an important passage into adulthood and helps young adults identify their career aspirations. It’s also expensive. On average, in-state students at public four-year colleges paid $9,970 per year in 2017–18, and private college students paid $34,740 per year.^* Fortunately, there are a few simple options to help you plan for your kids’ college expenses and manage their debt.

1. Open certificate accounts—With this account, you set aside funds for a set period of time and, in return, receive a higher dividend rate than with a traditional savings account. Some certificates, like Mountain America’s Growth certificate, allow you to open an account without a large initial investment. You’ll enjoy these perks:

    

   • Only $5 to open the account.

   • Continue making deposits throughout the term.

   • Choose from a variety of terms—from 6 to 60 months.

    

   Encourage your kids to deposit half of their earnings from birthdays, allowances, etc., into a checking account and half into a certificate.

    

2. Take concurrent enrollment and Advanced Placement (AP) courses—Save hundreds or thousands of dollars on tuition, books and fees by earning high school and college credit simultaneously.




3. Start 529 plans—Each state offers different 529 options, such as prepaid tuition plans and college savings accounts. We recommend comparison sites like collegesavings.org and savingforcollege.com.

*CollegeBoard—Trends in Higher Education 2017-18