Most parents would want their kids to have the best possible education, preferably in the school of their choice. But for those who have multiple children, this goal becomes more of a challenge. Feeding them alone is already considered a financial burden. So can large families still afford to have some extra cash that they can set aside for college fund?
Some are hoping that they could depend on financial aid to help their kids get into college. Will it save them or not?
The College Board says that in 2015 to 2016, students received a total amount of $193 billion worth of financial aid. The federal government made up the 61% of the total or an equivalent of $118 billion. From a spectator’s viewpoint, this may seem like a huge amount of money. However, if they looked at the trend from year to year, federal aid has significantly declined from its peak of $136 billion in school year 2010 to 2011.
It can be noted that Donald Trump repeatedly insisted while at the height of his campaign that the federal government should not prioritize lending money to students. This could be an indication that FFEL (Federal Family Education Loan Program) that relied greatly on private lender may see a comeback in the future. Furthermore, USDA head Sam Clovis mentioned in an interview that student aid and loan should be based on the student’s potential to earn after graduation.
The truth is that while financial aid may look like it could help pave way for the education of your kids, it’s possible that this may no longer be available in the future. It does not present any guarantees and parents are not really sure that they will have someone to lend them some money once the kids decide to pursue a higher education.
The best solution would be to save up. It may not be enough, but at least you can rely on the money that you have saved.