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How do people plan to pay for college?

Updated: 9/20/2023
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12y ago

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If you have a young child, most people can apply for a College Savings account (529 plan), where parents and guardians can deposit money and let it grow. There is also the option of financial aid through grants and loans. Grants are sums of money that are awarded to students for having particular interests or for doing well in school, and do not have to be paid back. Student loans, on the other hand, are sums of money that need to be paid back. However, the first payment toward the loan is deferred to six months after graduation, giving the student some time to find work before repaying the loan.

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