Saving for College: Start Now with an Earn & Learn Account

Which would you rather have: a four-year college degree or a new Rolls Royce? If you had to pay for your choice, there wouldn’t be much reason to select one over the other to save money, because both have roughly the same price tag.

According to a 2015 report from Forbes, “College costs could total as much as $334,000 in four years.” In comparison, a nicely equipped Rolls usually runs $300,000-$400,000. Is college returning to what it was centuries ago: A privilege mostly for the independently wealthy?    

Lenders that offer student loans might say no, but these loans have to be repaid sometime — and when the time comes, many new graduates are not in a better position to start repaying student loans than they were to pay for college without assistance.

Saving for College

In addition to applying for college grants and scholarships, one of the smartest things current and future college students can do to minimize loan debt is save money for schooling. Considering the high cost of tuition, saving up for college can seem like filling a bucket with water, drop by drop. However, the amount you save depends partly on how you save.

A great account to begin your savings for college is available right here at American Eagle Credit Union – our exclusive Earn & Learn Savings Account. At the time this writing, our Earn & Learn Savings options earn 3.51% APY on balances up to $1,000 — far better than the average national interest rate of 0.06% for standard savings accounts. 

Start Saving Now

Depending on your income, where you plan to attend college, and how much time you have to save money before arriving on campus, you may be unable to cover every penny of your tuition and fees with savings. But these aren’t the only college expenses. 

For example, in the 2015-2016 school year, room and board at public institutions and private institutions averaged $10,827, books and school supplies averaged $1,273, and personal and transportation expenses averaged $2,938. Hypothetically, even if you only save enough to cover these costs and finance tuition and fees, you’ll repay about $15,000 less in loans following graduation.       

Makes a Great Gift  

If you’ll attend college in the future, and you want payment options in addition to student loans, an Earn & Learn Savings Account is one of the best Christmas presents you can give yourself. But don’t wait until late December to do it. Open the account now to maximize your savings. 

For more information about our Earn & Learn Savings Account, please call us today at 800-325-9905, or send us an email through our contact form. We look forward to helping you save for one of your biggest accomplishments: Attending college and graduating with a diploma in hand!   

 

*The Earn and Learn Savings Account is available to members up through age 21. APY= Annual Percentage Yield effective as of November 1, 2016 and subject to change; $5 minimum average daily balance required to earn interest. 3.51% APY earned on average daily balance up to $1,000; 0.15% APY earned for any balance greater than $1000. See rates for complete details. For a complete deposit account disclosure simply click. Membership eligibility required. Federally insured by NCUA.


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