My wife and I were talking about our kids college fund the other day and trying to figure out how to put three kids through college over the next 15 years. While our first kid will not enter college until 9 more years we are looking at some financial options to help us soften the financial impact. There are a lot more options now with state specific savings plans that allow you to stay out of debt and helped to set aside money tax free for college.
When I came out of school I used a student loan consolidation program to help extend the time in which I had to pay off my student debt. I found that early on being able to learn debt management helped me to stay focused and avoid any credit problems. We used a variety of financial vehicles to help manage our debt such as equity lines of credit and low interest bearing credit cards to help pay down higher interest loans and use more of the principal to pay down the cards and loans quicker. The key as that as our payments went down we continued to make the standard payement and this helped to `build up equity and we actually got letters from our banks offering 0% interest loans for a specified time if we transferred some of our other debt to them. This was a huge savings of approx. $1500 over the life of the loan to other investment vehicles that in turn we were able to earn a higher interest rate for our investment.
My parents made just enough money to keep us out of the financial aid realm so there were some nice debts when come out of my four year education. So as I got into the work force and applied my education I was able to use various forms of debt management to pay off my student loans while helping to build up my credit score. This has proven to be a great assest as our credit score is great and we have never been late or behind on any payments owed to creditors.
