 |
Decide if you're saving for
public or private college.
|
| |
Get the current average
annual cost of private versus public school.
|
| |
Determine what college will
cost when your child is ready to attend.
|
|
|
|
Set up a timeline for
saving:
|
| |
Determine how long you have
before you need to shell out cash for tuition.
|
| |
Figure out how much you
have already saved and how much you still need to put away to meet that objective.
|
| |
If you don't have one
already, establish an investment philosophy and determine a financial strategy that works
for your family.
|
| |
Consider hiring a
professional financial advisor.
|
|
|
|
When college is more than
15 years away:
|
| |
Consider opening an
Education IRA.
|
| |
Consider setting up a
custodial account for minors.
|
| |
Think about investing in
aggressive mutual funds.
|
|
|
|
When college is ten to
fifteen years away:
|
| |
Look into prepaid tuition
plans.
|
| |
Look into state-sponsored
college savings plans.
|
| |
Begin to stabilize your
financial portfolio.
|
|
|
|
When college is five to
ten years away:
|
| |
Move a portion of your
investments into fixed income or bonds.
|
|
|
|
When college is five
years or less away:
|
| |
Move your child's college
money into more conservative investments.
|
|
|
|
When it's college
time--tax breaks:
|
| |
Look into the Hope Credit.
|
| |
Look into the Lifetime
Learning Credit.
|
 |
The Hope Credit and The
Lifetime Learning Credit are mutually exclusive. Parents must choose one or the other for
each student; they both can't be claimed at the same time.
|
| |
See if you qualify to take
a tax deduction on the interest paid on your child's student loan.
|
| |
Consider withdrawing funds
early from your traditional or Roth IRA and taking a penalty waiver.
|
|
|
|
When it's college
time--parent loan:
|
| |
Look into the federal
Parent Loan for Undergraduate Students (PLUS).
|
|
|
|
When it's college
time--financial aid:
The main types of financial aid
are loans, grants and scholarships, and work/study programs. The majority of financial aid
comes through the U.S. Department of Education-nearly 70 percent of all money given-mostly
in the form of loans. The rest comes from a combination of federal or state grants and
programs, from the universities themselves, and from corporations, foundations,
professional and service organizations, and community groups.
|
| |
Fill out the Free
Application for Federal Student Aid (FAFSA) form.
|
| |
ClubMom's checklist Helping
Your High Schooler Find the Right College has helpful financial aid information.
|
|
|
|
When it's college
time--student loans:
|
| |
If your child qualifies for
a Federal Stafford Loan (which gives students a break on loan interest payments), factor
this into your financial planning.
|
| |
If your child qualifies for
a Perkins Loan, factor this into your financial planning.
|
|
|
|
When it's college
time--grants and scholarships:
|
| |
If your student qualifies
for a Federal Pell Grant, factor this into your financial planning.
|
| |
If your student qualifies
for a Federal Supplemental Educational Opportunity Grant (FSEOG), factor this into your
financial planning.
|
| |
Look into the Leveraging
Education Assistance Partnership (LEAP) program.
|
| |
Find out about money
available directly from the college and universities to which your child is applying.
|
| |
Find out about special
interest groups and organizations that supply cash for college.
|
| |
Beware of scholarship
search firms that promise you scholarship money for a fee.
|
|
|
|
Work/study programs:
|
| |
If your child qualifies for
a work/study program, factor this into your financial planning.
|
|
|
|
Alternative approaches to
financial aid:
|
| |
Consider reducing the cost
of college by having your child start out at a community college.
|
| |
Consider having your child
apply for a four-year U.S. Army ROTC scholarship.
|
|
|
|
