How to Pay for College Without Breaking Your Budget

With college costs continuing to climb, it's harder than ever for parents to solve the problem of how to pay for college without sacrificing their own financial security. But with the right strategies, you can make the most of the resources at your disposal and improve your chances of helping your kids avoid crippling student loans while still staying solvent yourself.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at three things to consider about how to pay for college. Dan notes that using 529 plans are a great way to use tax-free benefits to help invest money toward college expenses. He discusses findings from Morningstar that name Vanguard, T. Rowe Price (NASDAQ: TROW  ) , and BlackRock (NYSE: BLK  ) as solid 529-plan managers, while a 529 plan distributed by Schwab (NYSE: SCHW  ) got less attractive marks from Morningstar.

Dan also suggests several steps to consider in order to try to increase financial aid and reduce your parental contribution toward your child's education. Finally, Dan notes the many opportunities for other cost-cutting moves, ranging from fellowships and scholarships to seeking out more cost-effective schools.

Invest for college and beyond
In deciding how to pay for college, investing is a key part of a successful strategy. But millions have been too scared to invest in recent years, even though staying out of the market has endangered their financial futures. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2744977, ~/Articles/ArticleHandler.aspx, 10/28/2016 2:27:12 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 4:02 PM
BLK $340.28 Up +0.13 +0.04%
BlackRock CAPS Rating: ****
SCHW $32.16 Up +0.01 +0.03%
Charles Schwab CAPS Rating: ****
TROW $63.83 Down -2.52 -3.80%
T. Rowe Price Grou… CAPS Rating: *****