CNBC

Sharon Epperson

 If you’re one of those parents who put off saving for college and is now panicking because your kid’s nearing the end of high school, it’s not too late.

But don’t keep procrastinating! It’s time to stop putting it off and act now, advised Sharon Epperson, CNBC’s personal finance expert during a live web chat Wednesday.

Many readers, including a few with upper-middle class salaries, were wondering how to go about footing the hefty bill for college if they didn’t have the funds, or the inclination to have saved for their children’s education when they were still tots.

“I have a son who will be in college in two years,” wrote Jeanne. “We have not saved anything for college. Our home has no equity available. We make roughly $180,000 a year as a couple. We are extremely stressed about how to pay for his college. Where should we start? What is the best way to pay for his college?”

For some, college savings plans and saving in general would still be a good idea, Epperson said.

“You and your son need to devise a plan to pay for his college years together,” she stressed.

“Number one: Ramp up your savings. Both you and your son need to start putting away as much money as you can into a college savings fund.”

And junior? “He should get a part-time job and put the money in a high-yield savings account,” she suggested.

As for a 529 college savings plan, she said,

“Open a 529 savings plan. Even though your son is only two years away from enrollment, this is a good way to earmark the money for college and possibly get a state-tax deduction. The best part: you can take this money out tax free to pay for college. Go to www.savingforcollege.com to learn more about 529 plans. Grandparents, godparents, close friends and relatives can open a 529 in your son's name as well.”

Epperson also took on the issue of student debt that’s a burden to so many graduates and parents lately.

“The key in repaying student loans it to choose the right type of repayment plan,” she maintained.

“Calculate your payments over the life of the loan and make sure there is no prepayment penalty in case you change your mind and want to pay more than is due,” she explained. “It's great to be able to defer loan payments while in school to focus on your studies, but paying a small amount each month, say $25, or paying the interest while in school, can shave 10 percent to 20 percent off your total loan cost over the life of the loan.”

You can see the entire Q&A with Epperson here:

Farnoosh Torabi

This is the season when college acceptance letters start coming in the mail and lots of families are trying to figure out how to pay the hefty tuition costs.

With annual in-state tuition costs for public colleges averaging more than $8,000, and private school costs topping $28,000, reports CollegeBoard.org, the thought of covering such an expense can seem hopeless, especially to parents facing budget constraints already.

But never fear, stressed Farnoosh Torabi, personal finance expert, author of “Psych Yourself Rich: Get the Mindset and Discipline You Need to Build Your Financial Life”, and host of "Financially Fit" on Yahoo, who was on hand Wednesday to take online questions from readers during our weekly live chat.

“There is hope if you're willing to be flexible and not rush into the whole college thing,” she said.

“Saving money takes preparation and it takes thinking outside of the box,” she explained. “I will be the first to say that your child doesn't need to head to college right away - especially if the money isn't there. Taking a year off to work, save or enhance your resume with volunteering experiences can boost your chances of not only getting into a good school, but paying for it.”

For those who don’t want to wait, she said, two-year community colleges can be a good starting point. “Smart, talented students are flocking to community college to earn credits, save money and later move over to a full-time 4 year institution,” she noted.

Torabi also weighed in on the question of whether parents should be saving at all for their kids’ education, a topic covered by reporter Allison Linn Wednesday. 

“Some parents see college as a great gift to their children - and if you feel strongly about making this a financial priority, that's great,” she said. “But don't kill yourself trying to send your children to college. Do what you can. Be realistic and involve your kids in the reality. One thing is true, when children bear some of the cost, they tend to appreciate the education more and recognize the value a lot more.”

You can read the full Q&A with Torabi here: