How can I finance my college education?

How to Finance Your Education

1. Pay for your education with the free, no strings money available through grants or scholarships. Grants are given based on economic need, and scholarships are generally awarded on merit or special ability. You never have to repay this money, so they are competitive awards. Your school has information on what may be available to you, but there are also many privately funded scholarships available. Try searching online for these opportunities.

2. Save ahead of time. Figure how much money it will take to attend school and then decide when you want to start attending. Put back money each month, that way you can build your education savings until you are ready to attend.

3. Change some of our assets into cash. This could mean stocks, bonds, real estate, or it could mean have a garage sale and eliminate some of the property that you no longer need or use. You will be surprised how quickly the dollars will add up. What might be your clutter could be someone elses treasure.

4. Borrow money from your IRA. But remember, this money would have to be repaid or else your could incur a hefty penalty and taxes.

5. Your employer could have a Tuition Assistance Program (TAP). Many companies offer tuition reimbursement for those attending undergraduate, graduate, and professional schools. Each plan is different, but most reimburse all or a portion of an employee's tuition, books, and related fees.

6. Student loans are a common way to pay for tuition and school expenses. With them, you have access to as much cash as you need, very low interest rates, and flexible repayment periods. They are readily available and you do not need to have good credit to secure one. Loans come subsidized, where the government pays the accumulated interest while you are in school and during a deferment period, and non-subsidized, in which interest accumulates as soon as the loan is granted.

8. The HOPE Scholarship credit is for a student's first two years of undergraduate education, and the Lifetime Learning Credit is available for working adult Americans who are taking classes to upgrade their skills. To find out how tax deductions and credits can work in your favor, visit the IRS's website: www.irs.gov.