Old-fashioned Savings May Help College-bound Students Avoid Debt

Student loans have replaced credit cards as the highest form of debt Americans carry. Recent reports have shown student loan defaults are on the rise, as few debt relief programs for these types of loans exist. Efforts to protect their children from incurring heavy debt has many parents searching for ways to put their children through school out-of-pocket.

In addition to 529 savings accounts, scholarships and grants, financial professionals remind parents that a traditional savings account goes a long way. Many parents put their children through school debt-free by establishing savings accounts, certificates of deposit and money market investments when their children were younger, according to Reuters. To supplement their savings, families also made a point of living frugally, downsizing and reducing their spending.

Financial professionals also encourage college-bound students to pull their weight by seeking out work-study programs to help pay for college-related expenses, such as books, food and spending money.

Families can increase their chances of securing funding through grants and scholarships by setting up meetings with college counselors and discussing their options. Thousands of scholarships are available, but many students do not apply for them because they are unaware the funding exists.