| |
| |
|
College & University Information |
|
|
|
Saving For College - Your Number Two Priority
In today's highly competitive college admissions process, families must never lose sight of the fact that nothing is more important to parent or child than the student's acceptance to college. Your second priority is how to pay for it. Planning for college can begin as early as birth, and for that matter, even before birth. Financial planning in the early years can make all the difference in the world when it comes time to have to cough up all that cash! The following are some of the best ways to save for college: Custodial Accounts: With Uniform Gift or Uniform Transfer to Minors Act Accounts (UGMA or UTMA), parents, grandparents, etc. can each contribute up to $11,000 per student per year (2005). This money can be used for college or any other purpose. Although the money remains in the student's name, the custodian, usually a parent, has absolute control over the account - i.e. stocks, bonds, mutual funds, savings, etc. UGMA accounts accept cash only. UTMA accounts accept cash and property. The Downside: UGMA and UTMA accounts are irrevocable gifts that are considered student assets. Since students have no asset protection allowance, these assets are assessed at either 25% per year at schools that employ the institutional methodology, (Ivy League and high profile private colleges), or 35% per year at all the rest that employ the federal methodology! Therefore, this option must be used with extreme caution! Education IRA's a/k/a EIRA's: Single parents with an adjusted gross income (AGI) of up to $110,000, and joint filers with AGI's up to $190,000, can contribute up to $2,000 annually to an EIRA. Earnings accumulate tax-free and can be withdrawn tax-free without penalty to pay for a private elementary, secondary, or college education. The Downside: With the current limit of $2,000 (2005), fees can eat up much of the gains in the early years when balances are small. Contributions to EIRA's are not tax deductible and all colleges consider EIRA's student assets and apply the 25% or 35% assessment when calculating financial aid. What's even worse is what happens when distributions are made from these accounts. Financial aid is automatically reduced dollar for dollar, because in addition to being an asset, the funds have now become a resource! When these funds are legally repositioned outside of the financial aid formulas, then none of the money is assessed! State Plans a/k/a 529 Plans: Anyone can open a 529 Plan in his or her own name and designate a student as the beneficiary. Up to $50,000 ($100,000 jointly) may be contributed over five years to a maximum of $246,000. Funds grow tax-free and withdrawals since 2002 have been tax-free as well. Downside: Monies contributed are not tax deductible, and there is little or no control over how the funds are invested. Also, there is a 10% penalty for withdrawals not used for college, and 529 Plans can actually decrease chances for a large grant or scholarship - and that's not all. When there are distributions from these accounts, financial aid is automatically reduced dollar for dollar! As with EIRA's, having the funds legally repositioned elsewhere, will result in no assessment whatsoever! Retirement Plans: An IRA, HR10 (Keogh), Pension, SEP, 401(k), 403(b), 457 or any other qualified retirement plan should also be considered when saving for college. Such plans are not regarded as assets and are outside of the financial aid formulas. While the account value is not considered an asset, the annual contribution made is added back to the AGI for an income assessment! The big print giveth, but the small print taketh away! Non-Qualified Savings Plans: These are accounts strictly set up to provide funds to be used to pay for the Expected Family Contribution (EFC) or any unanticipated college costs. Families need to set up these accounts as early in the student's life as possible, so there will be adequate money to pay such costs when the time comes. Remember, by the time students enter high school, consideration should be given to reducing "high risk" investments. Never gamble with money that's earmarked for education! And, never lose sight of the fact that all monies saved for college in the early years will not serve their purpose unless the student prepares for and successfully completes the admissions process. This is one of a series of articles by college admissions and financial aid expert, Reecy Aresty, based on his book, "Getting Into College And Paying For It!" For further information or to contact him, please visit www.thecollegebook.com. For almost three decades, financial advisor and lecturer Reecy Aresty, has helped thousands of families to protect their assets, increase their wealth, and reduce their taxes. During the 1980's, he turned his attentions to the complex world of college admissions and financial aid. By the end of the decade, he was already saving his clients thousands of dollars on a college education! He has authored, "Getting Into College And Paying For It," also available in Spanish. Filled with trade secrets and insider information, it offers solutions for high school and college families guaranteed to give students the all-important edge in admissions, and parents countless legal ways to reduce college costs. In 2004 alone, Reecy saved families hundreds of thousands of dollars! He has become a major factor in obtaining affordable, quality educations for America's students. In doing so, he has restored the faith people used to have in one another by proving that there are still people who care, people who can be trusted, and people who actually do what they promise - and get results!
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
What is the Cost of College Tuition? What is the average cost of college tuition? This is one question that most parents and future students ask themselves and need to know in order to plan for a college education.The national average college tuition rate for public universities is $4,694 per year for in state residents. Acing the SAT Exam Don't cheat. This goes without saying for 999 out of 1000 students (hopefully even more!) but cheating is not the way to score high on the SAT exam. Discover How Online College Classes Work It's no secret that more and more people are looking to the internet for a convenient way to further their education. Online classes are a great way to obtain an accredited college degree from home and continue to work a full time job. MRCP and MRCPCH - Preparation for the Examination There should have been a time in the human history when there was no need for anyone to prove themselves; it is so delightful to think such a planet earth where human beings were free as birds without examinations. But to entertain such thoughts is almost sinful, a taboo for those in the medical field!!! It is all the more true for those who aspire to gain their MRCP and MRCPCH certifications. Online Paralegal Degree Preparing You For Employment In an era when professional opportunities are diminishing, one area where opportunities are certainly expanding is in the field of paralegal work. Consequently, as the practice of law expands, and the need for professional paralegals grows, many argue that there has never been a better time to enter the field of paralegal work. CRI Releases Its 2003-2004 College Graduate Survey Upper Saddle River, N.J. What to Look For When Choosing an Online University A college degree gives a person a guarantee of higher wages and a better job. Sadly, many Americans continue to go on without having a college degree. Why Students Turn To Custom Writing Services Plagiarism has been condemned lately by all types of experts, including scholars, university board members and even commercial parties, such as TurnItIn, which sells plagiarism detection software righteously claiming that plagiarism should be combated through the most efficient and up to date tools.Well, if such company ever reaches its ultimate goal of eliminating plagiarism, it will go out of business, since there will be no more need for plagiarism detection. Making the Most of Your Summer At last, summer is here! After a school year full of hard work, you can finally put away your books, break out your bikinis, and soak up the sunshine. This is not only what you deserve but in fact what you need: If you have been working to your maximum level during the school year, you owe your body about two weeks off during the summer for a real break. Student Financial Guide is Your Guide to College Success The Student Financial Guide website is divided into categories pertaining to pre college resources, during college experiences, post college challenges, investing, news, and even a forum where you can chat with other members looking for advice or just wanting to chat.Preparing for college is very important and that's why the Student Financial Guide covers topics on budgeting and planning for your college years. Online Education: 57 Leading Institutions Getting a college degree today is easier than ever before thanks to the number of institutions offering distance learning opportunities. Whether you are pursuing a undergraduate, graduate, or doctorate degree you can choose from scores of degree granting schools. Is Pursuing A Degree Online Really For You? Who Should And Who Should Not? Stanford University's Online Lessons Learned Stanford University's Center for Professional Development has recently completed a survey of those that have been successful in completing online degree programs globally. The results of their research provide useful guidance for anyone considering an online program. Student Removals - How to Get the Lowest Quote The problem with student and any small move comes when a small load has to be transported a long way:- For the moving company, the mileage and road time costs are not much less than for moving a whole house.. How to Survive First Year Engineering So you just got accepted in your engineering program?joy, but you are still doubtful. You ask yourself, could I actually handle the stress, the sleepless nights, the solitary life style and the Exams? Well hopefully after reading this guide you might just be able to do so and perhaps without going insane or bald. All About Grants for College Students Grants are a type of student aid that is awarded by the government. Grants for college students do not have to be repaid. Quality Schools After presenting these ideas at the NAREN (National At-Risk Education Network) in Wisconsin last week, I was asked to write an article that would be able to reach more people to spread the exciting word about Dr. William Glasser's work in the area of Quality Schools. Physical Therapy Schools Physical Therapy Schools administer course instruction to potential physical therapists. Physical therapy schools help students to meet physical therapy requirements and the ability to pass a licensure exam before physical therapists can begin to practice. Who Can Apply For Online Nursing Degrees? Online nursing degrees are college degrees in the field of healthcare and nursing that are obtained via the Internet. Online nursing degrees are great ways for registered nurses to further their careers without having to take a leave of absence from their jobs. The Pros and Cons of an Online College Degree Getting a college degree online seemingly appears to be a very convenient way to gain further education without having to inconvenience your home life. An easier way to obtain an edge in the working world is by getting that online college degree that you've always wanted, without having to leave the comfort of your own home. Why are Some Online Degree Colleges Better than Others? Any student who is on the lookout for online degree colleges would probably have been swamped with the many options marketed to them over the internet. Therefore, it is not a wonder that many students feel confused on the right college selection as they may not know the way to nail down the advantages that certain colleges have over others.
|
| Article List | Index | Site Map |
|
All logos, trademarks and articles on this site are property and copyright of their respective owner(s).
The comments are property of their posters, all the rest is Copyright © 2006 CanadaSEEK.com - All Rights Reserved. |
