By Juan Garcia,
Iowa Student Loan Liquidity Corporation
For More Information Contact:
Tara Kamin
Corporate Communications Manager
Iowa Student Loan Liquidity Corporation
(515) 273-7404 | tkamin@StudentLoan.org
No matter what plans your student has for training or education after high school, many new and exciting experiences await, each requiring planning to be most successful.
At ISL Education Lending, we know that preparation for the next step helps students significantly increase their chances of graduation, finding a job and successfully repaying any student loans they may have needed.
As a parent of four daughters that have gone through the college preparation process, planning ahead and following the below tips have greatly helped. You can also use these actions to help your student be successful in their journey.
- Get college funding in order. Well before high school graduation, your student should have a good grasp of the cost of training or education needed after high school. Please work with your student to compare the cost of the most appropriate options for their desired career goals, such as community college or a four-year institution.
With the total cost in mind, you and your student should explore ways to cover funding gaps. If your student will need to rely on loans, be sure you both understand the limits and advantages of federal student loans compared to private student loans. Be aware that most traditional-age college students are not able to take out private student loans without a cosigner. The total cost of any degree is important to know before your student starts. Get the real numbers, including interest for any loans. Private student loans through nonprofit organizations like ISL Education Lending often have a lower interest rate than those from larger, for-profit lenders. This can add up to thousands of dollars of savings over the term of the loan. What you and your student end up paying is more important than where the money comes from.
2. Set up a financial plan. Discuss how your student will obtain the money they will need, such as from scholarships, from a job or from you. If you are helping your student financially, make sure you can easily transfer money to them. You may also, after discussing limits, want to consider adding your student to a credit card.
Create a budget. Make sure your student understands how daily expenses add up and how to reduce costs where possible. Depending on circumstances, a budget or spending app may be helpful.
You may also wish to set up, and use, a 529 college savings account through ISave 529, Iowa’s 529 plan. It gives you a tax benefit, and the sooner you create an account, the longer your investment has the chance to grow through interest.
3. Take care of health needs. Your student may need vaccinations or boosters, as well as a physical, dental cleaning or vision check, before college or training. Encourage your student to schedule appointments and complete the appropriate paperwork, with your help as needed, so these tasks are familiar later. Be sure your student knows how to access their health care information.
If your student will be leaving home, work together to create a basic medical kit with health items you normally keep at home.
4. Plan for medical emergencies. Parents may not have access to health information or be able to make medical decisions for students who are 18 or older, no matter who carries the insurance and pays the bills. You may want to have your student properly complete, sign and have notarized official medical power of attorney and medical information release forms that you can easily access in case of emergency.
In addition, your child should understand when to self-treat, visit a clinic or specialist, or go to the emergency room.
5. Secure personal information and belongings. Will your student need to take a passport, Social Security card or birth certificate? Discuss how important it is to keep these documents secure. If your child relies on a phone contact list for important numbers, suggest a backup in case the phone is broken, lost or stolen.
If your student will have valuables in a new living space, consider dorm or renters insurance and check your homeowners policy for coverage.
Have a conversation with your student about cybersecurity and protecting their personal and financial information.
6. Practice daily life skills. Encourage your student to take appropriate responsibility for meals, laundry, cleaning, shopping and other everyday tasks. If your student is not used to sharing bedroom and bathroom space, discuss how behaviors may need to change in communal spaces.
Your student should be aware of how social media posts could affect their future career opportunities. The consequences of partying can also be life-changing. This might be a difficult discussion, but it’s an important one.
For other information as you help prepare your student for life away from home, visit ISL Education Lending’s website at www.IowaStudentLoan.org/articles.
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