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Education

Since 1980, the cost of higher education has been rising between two and three times faster than the Consumer Price Index, according to the College Board. Moreover, in recent years, federal financial aid for higher education has shifted largely toward loans and away from grants. As a result, the percentage of family income required to pay the cost of higher education has increased significantly.

Whether or not you can afford to pay for college from current income or savings, you may want to consider some of the alternatives, such as applying for financial aid or loans.

There are four sources you can draw from to pay for college:

  • Existing income and assets from the parent and student
  • College savings accounts such as a 529 or custodial account
  • Financial aid such as scholarships or federal student aid
  • Loans or lines of credit