Money Management
FOR
IMMEDIATE RELEASE: September 10, 2007
GREAT
LAST-MINUTE COLLEGE FINANCING IDEAS
College
education costs continue to spiral upward. In the 2006-2007
academic year, total college costs, including tuition, fees,
room and board, averaged $12,796 at four-year public
colleges and $30,367 at four-year private colleges,
according to the College Board. But there’s no reason to
lose hope if you
have a child who will be attending college soon and you
haven’t begun to save. There are options available for
parents whose college nest egg is not what it should be,
according to the North Carolina Association of CPAs.
FIND THOSE FINANCIAL AID DOLLARS
Nearly two-thirds of full-time students receive some form of
aid from federal and state governments, colleges and
universities, and other private sources, the College Board
reports. CPAs advise that if
you think you may be eligible for federal student aid, you
should file the Free Application for Federal Student Aid (FAFSA).
There are many types of aid available, including loans,
grants, scholarships or work study programs. You can find
out more at
www.fafsa.edu.gov.
There are numerous other sources of financial aid beyond the
federal government. The College Board site (www.collegeboard.com)
offers advice on conducting a scholarship search and
provides links to several free search services.
Remember also to look close to home for college dollars,
including scholarships that may be available from community
organizations or from your employer. Be careful, however,
not to be taken in by scholarship scams. The Federal Trade
Commission warns against working with unscrupulous companies
that promise to find financial aid in exchange for a fee.
The FTC offers tips for parents at
http://www.ftc.gov/bcp/conline/edcams/scholarship/.
SEEK A
GREAT MATCH
Students who apply to colleges where their grades and test
scores are securely in the top 25% of the student body are
more likely to get generous aid packages. Although there’s
no guarantee, most colleges battle to attract the best
students they can—-and they’re often willing to offer them
better grants and other financing assistance.
STATE YOUR
CASE
What happens when a school has accepted your child and
offered some aid, but not enough to realistically cover your
expenses? There’s no harm in asking for more. It’s best to
arrange to meet the financial aid officer in person and to
let him or her know that the school is your child’s top
choice, but the family just can’t swing the payment. Don’t
try to haggle with the aid officer, but do present your
situation candidly.
START AT A
COMMUNITY COLLEGE
Some students may have their hearts set on attending a
prestigious college, but their families may not be able to
afford the high tuition. To solve the problem, many begin
their studies at a less expensive community college and even
live at home during the first year or two, then transfer to
and graduate from a more elite school. Your child graduates
with the same degree at a much lower total cost. Before
taking this step, though, find out what amount of transfer
credit your ideal college will accept and what grades
students must earn in order to transfer.
MAXIMIZE
TAX BENEFITS
College savings plans, such as 529 plans, make it possible
to invest money for college that can grow tax free. It’s
best to start saving early. Your state’s 529 plan may
provide a state income tax deduction or credit for
contributing into the plan.
Studies
show that college graduates earn about 75% more than high
school graduates through the course of their working lives,
so a college degree is a worthwhile investment. If you have
a child heading to college soon, consult your CPA about the
many options for funding his or her education.
Produced in cooperation with the AICPA.
©2007 The American Institute of Certified Public Accountants
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