How am I going to pay for the childrens college education?

Ralph Estep Jr.:
00:00

Are you worried about how to fund your children's college education? Are you wondering if there are creative ways to ease the financial burden? Well, stay tuned because today on The Ask Ralph Show, we're diving deep into the world of college financing from a Christian perspective. I'm going to give you some ways to reduce the stress and just maybe, make the process easier for you.

Ralph Estep Jr.:
00:27

Before we jump into today's exciting topic, let's take a look back at yesterday's show. Yesterday, we discussed how to respond to financial trials and uncertainty by using our faith. Remember this friends. Our God is bigger than any financial challenge we face. You can find all of our past episodes at askralph.com.

Ralph Estep Jr.:
00:51

Now let's get to today's burning question. It comes from Martha in Austin, Texas. And Martha writes this, "Dear Ralph, my oldest child is entering high school this fall, and I'm already losing sleep over how we're going to pay for college. Between my husband's small business and my small part-time job, we make ends meet, but we haven't been able to save much for our kids' education. So Ralph, what are our options? Is it even possible to pay for college without going into massive debt? Help!" Well, Martha, I hear you loud and clear.

Ralph Estep Jr.:
01:25

The cost of higher education can seem overwhelming, especially when you're trying to balance running a business, working, and raising a family. But take heart. We serve a God of abundance, and He has provided many ways to make college more affordable. So today, we're going to explore those options and hopefully ease some of your worries. Well, welcome friends to another motivational Monday edition of the Ask Ralph show, where we're mastering your finances from a Christian perspective. I'm your host, Ralph, and I'm thrilled. You joined us today.

Ralph Estep Jr.:
01:56

But before we dive in, let's turn to God's word in guidance. The book of Proverbs chapter 16, verse 3 tells us this. "Commit to the Lord whatever you do, and he will establish your plans." That is truly powerful. This verse reminds us that when we seek God's wisdom and commit our plans to Him, He will guide us and establish our path.

Ralph Estep Jr.:
02:28

Now let's tackle Martha's question and explore the best options for funding a college education. We're going to look at some traditional methods, some creative solutions and even some little-known secrets that might save you thousands of dollars. Well first, let's talk about FAFSA. That's F-A-F-S-A, and that stands for the Free Application for Federal Student Aid. This is the gateway to most forms of financial aid, including grants, work study programs, and more importantly, federal student loans.

Ralph Estep Jr.:
02:59

Most schools are going to ask you to start with this form regardless of your financial situation. So even if you say, "Ralph, listen, we make a ton of money. I'm not going to qualify for anything." I'm going to encourage you to go do the FAFSA anyway. So let's talk about how it works. You fill out the FAFSA form, which asks for your information about your family's income and your assets. You know, what you own. Based on that information, the government calculates what's called your Expected Family Contribution. You might hear that called EFC. This number is then used by colleges to determine how much financial aid you're eligible for.

Ralph Estep Jr.:
03:33

I know what some of you might be thinking, "Ralph we're small business owners. We don't have a steady paycheck to report." Don't worry about that. The FAFSA takes into account the unique financial situations of business owners. Just be sure to have your tax returns and financial statements ready when you fill out the form. So here's my first pro tip. Fill out the FAFSA as early as possible. Which means you're going to have to get your taxes done early. Some aid is given on a first come first serve basis. So the earlier you apply, the better your chances of receiving aid. This is an important reason to file your taxes on time.

Ralph Estep Jr.:
04:08

Well now, let's talk about scholarships. These are like free money for college and everybody likes free money and there are more out there than you might think. Many people assume scholarships are only for those straight A students or those superstar athletes. But that's close to being true. There are scholarships from everything from community service to special hobbies or interests. So here's a creative idea. Encourage your kids to start a scholarship search journal, then keep track of scholarships they're eligible for, the deadlines. And more importantly, the application requirements.

Ralph Estep Jr.:
04:40

You can make this a family project to search for and apply for scholarships together. It's a great way to teach your kids about financial responsibility and the value of hard work. And remember this. No scholarship is too small. Even a $500 scholarship can cover the cost of textbooks for semester. I remember when I was in college, the books were outrageously expensive. And here's a little-known secret: Some scholarships are renewable. Meaning, if you meet certain criteria, you can receive that award each year that you're in college.

Ralph Estep Jr.:
05:12

Always read the fine print and look for these gems. They're great things to find. It truly amazes me. When I meet with clients in my practice, how few people actually research and review these scholarships. I've had many parents tell me their kids just didn't want to take the time to complete the requirements for the scholarships. Well, to that, I say this. Tell your kids that if they want to go to college, then they need to make this their full-time job. If they think the work is hard now, applying for these scholarships, wait until they're in college.

Ralph Estep Jr.:
05:40

They need to see the impact of this on their family bottom line and you have to stress that to them. It is majorly important. Let's talk about some more creative ways to fund a college education. These things I promised you. Have you considered dual enrollment programs? These allow high school students to take college courses and earn college credit while they're still in high school. Not only does this give your child a head start on their degree, but can also significantly reduce the overall cost of college.

Ralph Estep Jr.:
06:07

Another great option is community college. Starting at a community college and then transferring into a four-year institution can save you thousands of dollars. In fact, many states have guaranteed transfer programs between community colleges and state universities, making the transition smooth and ensuring credits will completely transfer. Here in Delaware, we have a great program. It's called a parallel program. I have many clients who have used this for their children with excellent success. And here, I believe the first two years are free.

Ralph Estep Jr.:
06:38

So here's another little-known secret. Some colleges offer tuition discounts for siblings attending at the same time. If you've got multiple children close in age, this could be a significant savings. You just got to get them all to go to the same school. I know some of you might be considering student loans. While loans can be a tool to help pay for college, we need to be very careful here. If you read any news lately, there's all kinds of talk about these.

Ralph Estep Jr.:
07:02

Well, the book of Proverbs 22:7 warns us, "The rich rule over the poor, and the borrower is slave to the lender." If you do need to take out loans, first, listen, exhaust all federal loan options before considering private loans. Federal loans generally have more favorable terms, and they have better repayment options. I see this debt that people carry with these student loans. You’ve got to think of other ways. So here's a creative way to approach student loans.

Ralph Estep Jr.:
07:31

Consider having your child take out the loans in their name but agree to help them pay off if they maintain a certain GPA or graduate with a certain timeframe. This can motivate your child to take their studies seriously while also teaching them financial responsibility. I think this is crucial. When my oldest son entered college, I told him straight up, you're going to need to get some skin in the game here, son. He applied for a private military college and the tuition was well over $52,000 a year. He ended up getting a huge scholarship which covered almost half of it.

Ralph Estep Jr.:
08:04

We then simply called the school and told them if they wanted him to be a member of the class. They needed to show us the money. Well in the end, he had taken up about $6,000 in student loans for the first year. So 52 and 6, I would say he worked it well. Well now let's talk about work study programs. These federally funded programs provide part-time jobs for students with financial need, allowing them to earn money to help pay for college expenses. Not only does this help them financially, but it also provides valuable work experience.

Ralph Estep Jr.:
08:36

I also hear clients tell me all the time that their kids are more organized because they learn to balance their life. So here's another idea. Encourage your child to become a Resident Assistant or what they call an RA in their dormitory. RAs often receive free or discounted housing, which can significantly reduce your college costs.

Ralph Estep Jr.:
08:55

Now I want to share a personal story with you. When I was in college, I had a close friend, we were in the marching band together and he was struggling to make ends meet. He was struggling to pay his tuition. He had a part-time job, but it wasn't enough. One day, he was distraught. He was praying about a situation, and he felt God leading him to talk to the financial aid office. When he did, he discovered they had emergency grants available for students, just like him in financial need. You know, when he applied to receive the grant, they covered his remaining tuition for that semester. In fact, it ended up paying for the rest of his degree program.

Ralph Estep Jr.:
09:29

Friends, sometimes, help is available if we just ask and trust in God's provision. Remember the book of Philippians 4:19 tells us, "And my God will meet all of your needs according to the riches of his glory in Christ Jesus." The truth is, God knows your needs and the desires of your heart to provide for your children's education. This is a time to trust in him and be open to the creative ways he might provide.

Ralph Estep Jr.:
09:55

So let's recap what we've covered today. Number 1. Fill out that FAFSA as early as possible and make sure it's accurate. Number 2. Search for and apply for scholarships, no matter how small they are. Number 3. Maybe you consider dual enrollment programs to get a head start on college credits. Martha, this is perfect for you. If you've got a child just now starting high school, you can encourage them to do that. Number 4. Look into community colleges as a cost saving option or that parallel program. If your state has that.

Ralph Estep Jr.:
10:26

Number 5. Explore tuition discounts for siblings. Now you may have to twist some arms and get the kids to go to the same schools, but it could save you a ton of money. Number 6. Be cautious with student loans, but if you have to do them, use them wisely if necessary. Number 7. Encourage your child to participate in work-study programs or become that RA, that resident assistants at the dorm. And number 8. Always ask about additional financial aid options at the college. You might call them and just say, listen, my son or daughter wants to go to school there. What can you do to help us pay for this?

Ralph Estep Jr.:
11:02

Remember friends, paying for college is a marathon. It's not a sprint. Start planning early, be creative, and most importantly trust in God's provision. Now I want to give you some actionable steps that you can take this very week. Number 1. If you've got a high school student, sit down together and create a scholarship search plan. Commit to finding and applying for at least one scholarship a week. Something you can measure, that's something you can do together.

Ralph Estep Jr.:
11:29

Number 2. Research dual enrollment options in your area. Many high schools have partnerships with local colleges. Number 3. Start a college savings fund if you haven't already. Even small, regular contributions can add up over time. Number 4. Pray as a family about your college funding journey. Ask God for wisdom, ask God for creativity and ask him for his provision. Number 5. If you're a small business owner, consider involving your children in the business. This provides them with valuable experience, potentially qualify them for business related scholarships.

Ralph Estep Jr.:
12:08

Before we wrap up, I want to remind you about tomorrow's show. We're discussing how to set healthy boundaries with social media from a Godly perspective. In our digital age, this is a crucial topic for both our financial and our spiritual health. So be sure to tune in. And now it's time for our call to action. If you found value in today's episode, I encourage you to share with others who might be wrestling with college funding questions. You can find shareable links on our website. That's right at askralph.com.

Ralph Estep Jr.:
12:37

While you're there why not join our community? When you sign up for our email list, you'll receive a free copy of my book. Mastering your finances. It's 47 pages. This book normally sells for $10 on Amazon. But it's my gift to you for being a part of our community. Remember friends, the whole point of the Ask Ralph show is to answer your questions. So keep them coming. Your questions shape our show and help us serve our community better. So we can answer questions like Martha.

Ralph Estep Jr.:
13:04

As we close, I want to remind you that God is with you on this financial journey. He truly cares about every aspect of your life, including how you fund your children's education. Trust in his provision, seek his wisdom and be open to the creative ways he might provide. So as I close, as I always say, stay financially savvy and God bless. We'll talk to you again soon.