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 is 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 Iowa Society of
Certified Public Accountants.
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.
Access “Find a CPA.”
