Paying for College: Are You Concerned?

college With the economic downturn showing few signs of reversing, this blog has been examining how its affecting juggling parents, from high gas prices to a possible upside of unemployment. A front-page New York Times article that ran Saturday focuses on yet another area of financial stress: paying for college. (See also the Journal’s story from last week “Credit Crunch Hits Private Student Loans“)

The article, by Jonathan D. Glater, says parents are facing a wide array of tough challenges this year as they try to cobble together tuition money. The credit crunch is making education loans of all types harder to get, even as declining home values in many areas are reducing parents ability to tap into home equity. While Harvard and Yale, with their multibillion-dollar endowments, are expanding their need-based grant programs, the article says, most other colleges are struggling to help students who find themselves unexpectedly cash-strapped. The piece cites a Times/CBS News poll that found 70% of parents were very concerned about how they would pay for college, while just 6% were unconcerned.

My wife and I are probably in neither category, for the moment: certainly concerned, but not very. Thats mostly because our children are just 6 and 3 (though yes, the time flies by); we have a good financial adviser and some prudent investments; our house and our neighborhood seem to be holding their value well; and were both doing well in our careers. But the thing about the current economic malaise thats making so many people queasy is its unpredictable nature. Were well aware that, aside from the kids aging at a steady rate, any one of those great things going for us could turn sour in surprisingly short order. All we can do is stick to the plan and its great that we do have one, at least, after some years of a less systematic approach.

Readers, especially ones with children in high school or college, how worried are you about paying for higher education? What are you doing to prepare (or cope)?