March 29, 2013
College scholarships for single parents give mothers heading to college a leg up financially. Now there are ways for these women to offer the same sort of benefit to their kids. New college investment plans are the economical way for parents to fund their children's futures.
More parents see education's value
Recently, an influx of adults have entered the higher education scene.
The most recent National Center for Education Statistics report projects that between 2007 and 2018, enrollment by those ages 25 through 34 will increase by 25 percent. Additionally, the study expects a 12 percent increase in enrollment among individuals 35 years and older.
Getting a degree can improve anyone's prospects of getting ahead in their careers.
Claudia Frittelli, program officer of the Higher Education and Libraries in Africa at the Carnegie Corporation of New York, explained the significance of a thorough education in a recent Huffington Post blog post.
"Clearly, if women's talents aren't developed and put to use, half the world's capacity is wasted," Frittelli said.
For single mothers, grants for parents are extremely beneficial in getting them this education. For their children, however, a different kind of investment may be beneficial.
Parents invest in their kids' schooling
The Private College 529 Plan may provide an answer for parents wondering how to pay for their own, then later their children's college education. Essentially, the plan allows parents to pay the current tuition rate whenever their child eventually enters school.
Parents can invest any amount of money at a time to their child's fund. For each contribution, the investor gets a certificate stating what proportion of the tuition he or she paid.
For example, if the current tuition of an institution is $12,000 per semester and a parent invests $4,000, he or she receives a certificate worth a third of tuition costs. When the child eventually goes to school and the semester cost has gone up to, say, $18,000, the certificate will still be worth a third of that price: $6,000. The parent consequently saves a couple thousand dollars.
The Tuition Plan Consortium established the Private College 529 plan. According to the organization, over 270 schools participate in the program.
A recent New York Times piece on prepaid tuition notes that there is variety within this group of institutions. With everything from small schools in the U.S. South and Midwest to larger establishments such as the University of Notre Dame, students will have their choice of school, while saving their parents money.
Though a solid education is undoubtedly valuable, it can also be pricey. Parents might find ways to save money in their schooling endeavors through scholarships, as well as their children's through early investment.