This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Ways Families Are Making College Affordable Again

NEW YORK (TheStreet) -- It's not your grandfather's college savings game anymore.

In fact, grandpa -- and even your dad -- wouldn't recognize how U.S. families pay for college these days.

No shocker there. According to the College Board, the average annual cost of a four-year public college or university stood at $8,655 in the past academic year. Back in 1982, that same bill would have risen to only $2,423 -- or, adjusted for inflation, $5,865.

That's would be a 32% discount off today's prices.

With unemployment and underemployment high and college prices skyrocketing, parents today have to come up with some creative -- and sometimes unappealing -- ways to pay for college.

Fidelity Investments has a survey of the five latest wrinkles in the family college savings game plan:

Pitching in. According to Fidelity's seventh annual College Savings Indicator Study, parents are stashing away $5,000 per year for college savings -- and that's just not enough. So 54% of parents expect their kids to go online and earn college credits, and another 54% expect their kids to work part time to help pay for college.

Living at home. Fidelity says 55% of U.S. parents expect their kids to "accept compromises" in their college education due to higher tuition costs. Maybe that's why 50% of parents will ask their children to live at home and commute to college to save costs.

No private schools. According to Fidelity, 43% of parents say they may not be able to even borrow enough money in student loans to cover the costs of college. That's why 40% of parents are limiting their kids' college choices to public schools.

Speed it up. To really save money, mom and dad are asking their child to treat their college education as a sprint, not a marathon. Fidelity says 23% of parents are asking their college student to graduate in fewer semesters.

A reality check. Mom and dad aren't convinced that junior has a good grip on the fiscal realties of college costs these days. Thus, 45% of parents make their child read college planning documents provided by schools and financial advisers. Another 11% actually make their child sit down with their financial adviser for a face-to-face reality check on what the family can -- and cannot -- afford for college. "Paying for college is a stressful topic, and adding a third-party financial professional may help take some of the emotion out of these highly charged yet important conversations," says Matt Golden, vice president of college savings for Fidelity Financial Advisors Solutions.

Overall, Fidelity gives parents a B-minus grade for their college savings efforts for this year. There is room for improvement.

"While a B-minus is a passing grade, parents need to make sure they are considering the total cost of college," says Keith Bernhardt, vice president of college planning at Fidelity Investments. "Families can make some simple adjustments to help improve their college savings 'grades' and keep themselves on track toward their goal."

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs