January 7, 2021
Parents require choosing the best college for their child’s growth. However, they may withdraw the scope with a limited budget. Otherwise, they might have to select the borrowing option or other money borrowing solutions to fulfil their kids’ dreams.
However, there are many other, more straightforward methods to resolve this from a very early age. It also wouldn’t affect the parents’ household expenditure during the college years of a student. On the other hand, some methods can help to save expenses.
A few of them include building an early savings account, opting for grants, bursaries, tax back, finding solutions over student rent, etc. Parents can even check out the right instant loans in Ireland.
College Money Saving Options for Parents
Building Early Savings
According to a survey, an average college student spends €534 to €1,000 a month. Also, on average, a term lasts for nine months. Therefore, the average yearly expenditure would become €9000 or more.
Besides this, parents that pay the lower end of the expenses per year would require at least €4,806. Therefore, it is crucial to open a savings account for a child as early as possible. It would help reduce stress and open opportunities to choose the desired field and education.
The survey also revealed it took seven years for parents to build savings for their child’s college education expenses. Additionally, most parents could only manage to save a bit higher than €5,100.
Grants, Bursaries, and Tax Back
Another option to help parents save money for kids’ college education is through grants, bursaries, and tax back. Many scholarships and bursaries through credit unions can help to cover the full educational expenses.
Therefore, the parents wouldn’t face any financial crisis, and neither the child would have to give up a chosen college or university. However, the unions can base the award based on a lucky draw or academic qualifications.
Also, parents would require confirming the terms and conditions for the scholarship and bursaries. It would help to know the reasons for which the child can get qualified and disqualified.
Similarly, students in Ireland can avail grants through Student Universal Support Ireland (SUSI). The online applications for students remain open from mid-April to closing date in July. The website also has eligibility criteria for different courses.
Students and parents can undergo the SUSI’s Eligibility Reckoner to know whether the grant matches the eligibility. Parents can claim tax relief and student contribution of €7000. However, the first €3000 and €1500 tuition fees for full-time and part-time students don’t qualify.
Parents with more than one college student can claim full tax relief and student contribution for the second or subsequent kid. The student fees relief and contribution information is available on the official Citizens Information website.
A significant portion of student expenses comes from rent. However, parents always can help their college children stay with a relative or friends. It would also help to save commuting money.
An annual survey revealed that the monthly rent expenditure of college students is €343. However, it varies depending on the location of the college. The higher end of student’s monthly rent goes upto €1,229.
On the other hand, college students staying at home incur €667 in costs. Therefore, the expenses decrease by almost half. Parents can help their child savings, lend money to important events, or cover other student expenses.
Moreover, the Rent Room Scheme can help parents avail €14,000 from tax-free rent. The Union of Students in Ireland (USI) also actively promotes student digs. The college kid can include meals with electricity and other overheads.
The last resort for parents to resolve money issues of college students is borrowing. Primarily, asking friends and relatives can diminish costs. However, it often leads to bad relationships, unless the borrower can repay as promised.
Therefore, a better option includes taking student loans in Ireland with an easy and manageable repayment plan. Parents can opt for bad credit, no guarantor, secured, unsecured, payday, student, instant, or other loans.
But loans that provide money in a short span often come with hefty APRs. Therefore, opting for the three solutions mentioned above would prove much more useful. Furthermore, parents can always avail zero-interest credit cards.
However, such cards come with a limited offer period, and heft APRs after the tenure expires. Therefore, the borrower must repay during the same duration. Taking loans from credit unions and offline lenders become the last money borrowing resorts.
The borrower can avail low APRs but must become a member of the credit union, and meet the eligibility criteria. Often the loan applications from credit unions get approved instantaneously.
Borrowing money from credit unions comes with six significant benefits. These include loan flexibility, fair interest rates, human interaction, transparency, online availability, and ethical options.
The disbursement amount for a student loan from a credit union varies from union to another. Therefore, comparing costs and building a relationship with the executive becomes vital. Borrowers can even visit banks and financial institutions to avail loans.
However, offline institutions and banks often have lengthy physical paperwork, processing tenure, insecurity of application approval, and other drawbacks. On the other hand, online loan applications include a paperless process, fast process, quick application results, and comparative lender choices.
Therefore, availing online loans over offline makes a significant difference, especially if there is an immediate fund requirement.
Parents and students have varied choices to cover college costs. Some solutions include building early child savings, opting grants, bursaries, tax relief, finding rent solutions, and taking loans.
The choices help parents recover yearly costs between €4,806 and €9,000. However, rent solutions like Rent Room Scheme can help to avail €14,000. Also, USI student digs can reduce meal costs for students residing with known people. Similarly, online loans can provide enormous benefits over offline borrowings. Therefore, parents choose the best solution to offer a comfortable education for their kids.