College Is Affordable
Paying for college expenses is a shared responsibility. No
one pays the full cost of higher education in America, since state
resources and colleges' own investment resources greatly reduce the
price that colleges actually charge their students. And financial
aid is available to those who cannot afford to pay the prices
colleges do charge.
The family is responsible for the portion of college costs
that it can reasonably afford, which is determined by using standard
financial aid formulas. Families have choices about how to pay their
share - and most families meet college expenses by saving and
borrowing and drawing on current earnings.
To finance major purchases such as a house, a car, or a
college education, most people spread the costs out over time.
Families may not be able to determine whether something is
"affordable" until they see how it breaks down in terms of monthly
payments. Most families will look at their expected share of college
costs and decide that the best way - and quite possibly the only way
- to manage the expense is by spreading it out over time.
If a family has already saved the entire amount of its share
of college costs, it may not have to use current earnings or borrow
at all. Or it might choose not to withdraw all of its savings but
instead leverage them through borrowing, or use a combination of
savings and current earnings.
Families who have done little or no saving for college have
fewer choices and will have to rely on some mix of current earnings
and student and/or parent loans.
North Carolina's National College Savings Program helps
families who want to save in advance. Student and parent loans from
College Foundation of North Carolina offer affordable options to
those families who need to borrow.
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