Your children are going to college. You may think it will be easy because you’ve been saving for it. But seeing the college fee structure, you’ll know it will not be easy. Coming out of the stress-induced fog might help you manage the costs. 

Here are five things you can do to help you on this journey of paying for college:

Understand your financial situation

Now that your child is off to college, as parents, you’re now left with taking care of the expenses like tuition, housing, and school supplies. Sitting down and looking into your finances is step one for parents. The next step is to make a budget, reevaluate your finances, and look into every savings account because the college costs are now added to your other expenses. 

Ask your child to pitch in

There are numerous On/Off-campus work opportunities for students, and these jobs may help pay for things like school supplies or boarding or housing rent. Having your child pitch in will also teach your children about budgeting and how to handle their finances. 

Avoid falling into debt

Paying for college is challenging, but that doesn’t mean you should allow yourself to fall into debt. Sometimes people take on more debt to pay for other debt, making them plunge into a financial crisis even more. Payday loans and cash advances may seem tempting, but they are not the only options. If you have incurred some payday loan debt, it’s best to consolidate your payday loans as fast as possible and pay them off. 

Find easy work that will provide you with passive income

With all the added expenses, having a side income will be helpful. Numerous jobs might help you supplement your income. If you are an expert on a subject, you can blog about it or offer paid consultations. You can also teach and do digital jobs like graphic design or digital art if you have the skills. You can also invest in cryptocurrency or equities that may generate a profit. You only need to find the correct fit.

Look into education-related tax deductions

The child tax credit ends when a child turns 17. Consider the American Opportunity Tax Credit (AOTC). It covers up to $2,000 in qualified tuition and fees, plus 25% of the following $2,000 expenses. Parents can claim this credit for four years.

Parents can also look into the Lifetime Learning Tax Credit, which gives a 20% credit on $10,000 of qualifying expenses. However, if you file as an individual, your income can’t exceed $59,000. Married couples filing jointly must earn no more than $118,000 even if lower credits are available for unmarried individuals earning $69,000 and married couples earning $138,000 per year.

It’s okay if you haven’t thought of a plan or haven’t had proper savings; it’s never too late to start. Think about what you need to do and plan accordingly. Let your children help you out, and make them take on some of the costs. It will relieve some of the pressure on you. Not to mention that it will help them become financially independent. You also have to think about the long run; it’s good to be prepared for it. 

About The Author: Lyle Solomon has extensive legal experience as well as in-depth knowledge and experience in consumer finance and writing. He has been a member of the California State Bar since 2003. He graduated from the University of the Pacific’s McGeorge School of Law in Sacramento, California, in 1998, and currently works for the Oak View Law Group in California as a Principal Attorney.