Did you mean to get around to starting that college fund when Junior was in diapers, but then somehow Juniow just got his driver's license, and you still only have $38 set aside? Well, as bad as you might feel about that, do not think you are alone! Raising kids gets expensive, and it is hard enough to keep bills paid, fund activities, and plan a retirement! But now you realize you have neglected to set aside a small fortune so college tuition, room, books, and expenses can be paid! So what are you to do?

Well, like many of my generation, I got to leave college without owing a dime. And I feel really bad about it, but I don't think I can give the same opportunity to my kids. For one thing, college expenses have been rising at an alarming rate. I, myself, could work during the summer and make enough money to pay my rent for the whole school year. A part time job during the school year funded my groceries and other expenses, and of course, the mom and dad thing funded the rest.

However, I know that it will not be possible, or let us say very unlikely, for my kids to be able to earn enough during the summer to make a real dent in the money they will need to live on for the next 9 months, much less make a dent in any other bills. The few hundred dollars that an in-state tuition bill cost a couple of decades ago has turned into thousands of dollars. And the ability to earn money has not kept pace with this increase.

In fact, I figure it cost me about $12,000 to graduate from a very highly rated public university. Now the statistics tell me it will cost $20,000 a year for my kids to do the same. How can a bill like that get paid?

Don't Sacrifice Your Retirement

Well, one thing experts do tell me is not to sacrifice my retirement funds for my kid's education. Education loans exist, but nobody is going to offer me a good interest rate on money to fund my golden years. And yes, loans will probably have to be part of the picture for a college education for many families these days.

Look For Grants and Scholarships

But don't forget to look around for every possible scholarship and grant you can find. Millions of dollars in aid is given out every year. The federal government has aid programs, and so do the universities themselves. And grants and scholarships are given out for all sorts of things, so don't just assume that your kid won't qualify.

The first step is to fill out the FAFSA form for federal aid. This form is used to get federal help, but even if you child may not qualify because your income is too high, this form is also used by many colleges for their own aid programs.

And remember, the college that Junior graduates from is more important than the school he or she attends as a freshman. If funds are tight, it might be prudent to begin a higher education at a local city or community college. Tuition will be cheaper, and maybe your kid can stick it out at home for a year or two. Many kids need this extra time to get used to college coursework anyway. While Junior attends classes close to home, he or she can work to help supplement income, and can spend some time finding him/herself.

Then as a sophomore or junior, you can move your offspring onto a more well known university. Most credits should transfer, the kid will be more mature, and you will have saved a bundle of cash.

If your kids is ready for it, consider high school AP classes. Many courses are given these days that prepare a student for college credit exams. Some kids can graduate high school with several credit hours worth of college already under their belt. The college credit exams do cost money, but are a bargain compared with paying tuition at a university, and the classes are taken for free, while living at home!

College Loans

Many students or families will need to borrow money to make it through college these days. Even if you want the student to bear the burden of the loan after he or she graduates, it will certainly help if the parents can co-sign, and if those parents have good credit.

So in addition to making a college savings account, one thing you can do to prepare for college expenses is to have a good credit score. Understand your credit score so you can work to improve it if you need to. Go Here: Explain Credit Scores.