Studies show that college graduates earn more money and are more likely to be able to hold a job than people who don’t attend college. CollegeBoard.org reports that in 2020, people with a bachelor’s degree who worked full-time earned $24,100, more on average than those who held just a high school diploma.
Most parents want to provide their children with any advantage they can, and a strong education can be the path by which children can gain independence and a secure future. The cost of college can be paid in three ways: before, during or after college — and the costs can be exorbitant for all three. That’s why many people investigate the option of refinancing their existing mortgage.
According to the National Center for Education Statistics, in addressing questions regarding the trends around college costs and tuition, they state:
For the 2012–13 academic year, annual current dollar prices for undergraduate tuition, room, and board were estimated to be $15,022 at public institutions, $39,173 at private non-profit institutions, and $23,158 at private for-profit institutions. Between 2002–03 and 2012–13, prices for undergraduate tuition, room, and board at public institutions rose 39 percent, and prices at private nonprofit institutions rose 27 percent, after adjustment for inflation.
SOURCE: U.S. Department of Education, National Center for Education Statistics. (2015). Digest of Education Statistics, 2013 (NCES 2015-011), Chapter 3.
Average total tuition, fees, and room and board rates charged for full-time undergraduate students in degree-granting institutions, by type and control of institution: Selected year, 2012–13.
|All||4 Year||2 Year|
|Private Non-Profit & For-Profit Institutions||$34,483||$35,074||$23,328|
If you have not saved for college prior to your child’s senior year of high school, you may be struggling to pay for college now. Borrowing money for college expenses may be your only option to pay for tuition, room and board, books, travel, etc. You are not alone. Many find themselves facing this same challenge without a personalized financial strategy. Divito Lending can help with this challenge and, together, we can help you make smart decisions about paying for college.
If refinancing is the right option for you, Divito Lending will help you select the best loan for your needs and walk you through the refinance process. Before refinancing, let’s look at other college payment strategies to explore:
In addition to the options above, you can speak with us today to evaluate the advantages and disadvantages of a cash-out refinance.