In 18 years, a degree from a public school will cost around $200,000 and a private university will run closer to $400,000, according to the College Board, which administers the SAT standardized college admissions test.

Adapted from "The Wall Street Journal Financial Guidebook for New Parents," by Stacey L. Bradford. Copyright 2009 by Dow Jones & Co. Inc. Published by Three Rivers Press, an imprint of the Crown Publishing Group.

For most of us, the only way to accumulate that kind of cash is to start setting money aside while our kids are still in diapers.

How?

529 Basic College Savings Plan

The 529 plan is a tax-advantaged savings account that allows you to invest money today and withdraw the funds free of federal income taxes, provided the money is used for qualified college expenses.

Continue reading "Think College When They Are in Diapers!" »

Posted by Candice Arnold on June 23, 2009 at 7:51 AM | Leave a Comment (0)

Whether the economy is going through a boom or a bust, it's always a good idea to save money, especially for college students. Sooner than you think, you'll be tossing your mortar board in the air and embarking on a bright and rewarding future. Just remember that unless you were lucky enough to have a full scholarship or very wealthy parents, student loans are likely to be as much a part of your future as your brilliant career. By saving part of the money earned from internships or part-times jobs in certificates of deposit (CDs), you could have a nice little savings waiting for you after graduation.

Although they fluctuate constantly, some of the best CD rates are available right now. The minimum CD amount that most banks will allow is $500. You can select a maturity (pay out date) of six months (sometimes nine months), one year, two years or five years for your CD. For example, a freshman college student who bought a five-year, $500 CD could let it earn interest at the current rates, then when it matures, he could use it to make a substantial payment on his student loans.

Web sites like SelectCDRates.com can help you find out what the average CD rates are nationally or what the current rates are in a particular state. Investing your money, especially during a down economy, in conservative assets like CDs can help any student to be better prepared for what he has to face after graduation, whether it be student loans, buying a new house, or relocating to start a new entry level job.

Posted by Candice Arnold on March 30, 2009 at 2:10 PM | Leave a Comment (0)

I recently read a review of UPromise written by a blogger named modernmarvel. She's a lawyer and a mother of three who has, so far, saved $500 - with the help of family and friends - through UPromise.

Although modernmarvel doesn't knock it, she does have some things to say about UPromise that aren't too promising (no pun intended).

Her first caveat comes in the form of a condition that must be met by all members who hope to retrieve the money they've saved ... they must have "529 Plans" for their children. The 529 College Savings Plans - from section 529 of the IRS tax code authorizing them - are much like 401(k) plans. They are sponsored by states, state agencies, or educational institutions and come in two forms, prepaid and paid.

Continue reading "Does UPromise Live Up to Its Name?" »

Posted by Candice Arnold on April 29, 2008 at 11:55 AM | Leave a Comment (0)

Provided By: Associated Content, Inc.

College education is getting more and more expensive as days pass on and it becomes harder and harder to fund your child's education. Inflation is hitting hard on tuition cost for college education. If you have a new born today he may need about $250,000 to $500,000 depending on type of college.

Continue reading "Saving for [Your] Child's College Education: Better Start Today [Instead of] Tomorrow!" »

Posted by CandiceArnold on January 29, 2008 at 5:28 PM | Leave a Comment (0)

How to Start Saving Early Through Scholarships and Shopping

Provided By: Associated Content, Inc.

Many of us with children in elementary school dread the day that we're faced with bills for college tuition. We talk about our children going away to college to become veterinarians, lawyers, and even writers and race car drivers (hey, they have their own dreams), but who is going to pay for this education and more importantly, how.

Continue reading "Saving for College During the Elementary Years" »

Posted by CandiceArnold on October 11, 2007 at 11:34 AM | Leave a Comment (0)

Provided By: Associated Content, Inc.

In today's society, education is becoming ever more important. Just a few years ago the emphasis was on graduating from high school. Now, however, the Bachelor's Degree is the new high school diploma.

Continue reading "Paying for College With Prepaid Tuition: A Sensible Solution to Protect Against Rising College Costs" »

Posted by CandiceArnold on September 20, 2007 at 2:56 PM | Leave a Comment (0)

So you just got your first paycheck and you’re in shock. It looks like half has been siphoned off for taxes and insurance. Chill. Forget about that “big” splurge at the mall and start thinking about some long-term goals. Practice sound money management and you’ll be able to afford some of the things you really want and need in life—an education, a car... okay, and maybe some cool clothes and a ski trip, too.

Continue reading "Manage Your Money" »

Posted by Sarah Ennenga on August 29, 2007 at 6:25 PM | Leave a Comment (0)

Well, your part just got bigger. Before visions of college degrees start dancing in your head, some serious financial planning has to take place. There are forms to fill out, strategies to be devised, and eventually a tuition check to be written. But there’s also help along the way—if you know where to look. Here are three steps to take that will help you pay for the college education of your dreams.

Continue reading "What To Do If . . . You Haven’t Done Enough Financial Planning" »

Posted by Shawn Augustson, CollegeRecruiter.com on February 5, 2007 at 7:25 PM | Leave a Comment (0)

Students who are determined to pay less for college don't just fill out their financial aid form, sit back, and hope for the best. They come up with an organized plan to make sure they explore all the aid that may be available to them. They know that diverse financial aid packages consist of funding from four major sources?the federal government, their state, their college, and private scholarships. And they don't forget that old saying: every little bit helps.

You can make sure that you don't miss out on college cash, too. Review the basics of the four major financial aid sources for undergrads, then read our profiles of students who tell exactly how they have paid for college. As their stories show, a higher education may not be cheap, but if you take an active role in the financial aid process, you can afford it.

Continue reading "How To Get Your Fair Share" »

Posted by Shawn Augustson, CollegeRecruiter.com on February 5, 2007 at 7:20 PM | Leave a Comment (0)

Try these money saving tips:

Be a Joiner. Not only will you make friends by joining a club, but you may also score some free refreshments at meetings.

Cruise the Campus Events. Instead of splurging at off-campus theaters and concert halls, check out the offerings around the quad.

Use that Meal Plan. Skip the take-out pizza and Chinese food and head over to the dining hall. Many colleges charge you for a meal plan whether you use it or not. Might as well get your money’s worth.

Continue reading "Stretch Your College Dollars" »

Posted by Shawn Augustson, CollegeRecruiter.com on January 29, 2007 at 5:38 AM | Leave a Comment (0)

The College Board recently announced that the average tuition increases outstripped inflation "only" by 50 percent this year, which is actually down from the even more ridiculous excesses seen earlier in the decade. For 2006, the average cost of attending college increased by 6.3 percent at state institutions and 5.9 percent at private colleges and universities. The overall rate of inflation last year was 3.82 percent. So that's the good news, sort of, but why is the cost of attending college going up so much faster than the rate of inflation?

Continue reading "Why College Education is So Expensive" »

Posted by Steven Rothberg, CollegeRecruiter.com on January 5, 2007 at 8:15 AM | Leave a Comment (3)

If you're like most parents, saving for your children's college education is a priority and a big challenge. Tuition and related costs at both public and private universities have been rising at 5% per year or more, far exceeding the rate of inflation. To put that into perspective, a child born in 2006 should plan on $110,000 in total expenses for four years at the average in-state public college; $300,000 for four years at a private university.

Continue reading "Saving for College: A Parent’s Guide to 529 College Savings Plans" »

Posted by Steven Rothberg, CollegeRecruiter.com on September 6, 2006 at 8:44 AM | Leave a Comment (1)

So, you use an RSS reader, right? Like Google Reader? Then you're well equipped to find free stuff online that will save you money, leveraging the immensely popular service, Craigslist. Here's how.

1. Go to the Craigslist in the city nearest you.
2. Find the For Sale section.
3. Find the free section.
4. Browse the free stuff.

Now here's where it gets interesting. Know what you want? Search for it.

At the bottom of the page, in the lower right hand corner, is an RSS link. This will subscribe you to your search. Every time your reader checks the feed, it will pull up any NEW items that have been posted to the free section - it's one stop shopping delivered to your doorstep, and a terrific way to keep on top of the latest free stuff.

Give it a try, save some money! Dorm furniture, furnishings, even electronics - all free.

Also in today's show, fun with Northwest Airlines.

Check it out at:
The Financial Aid Podcast Web Site

If you have iTunes, visit:
FinancialAidPodcast.com/itunes

As always, please contact me with any feedback, either here, on the show, or on the phone.

Posted by FinancialAidPodcast.com on August 25, 2006 at 10:31 AM | Leave a Comment (0)

From the newswires: Legislation has removed the sunset clauses for 529 savings plans, making them a now-permanent fixture of the college savings landscape. If you're a parent who has been looking at savings options for college and have been hesitant about 529 plans because they might become taxable in 2011, your worries are over - 529 plans and their tax benefits are now permanent. (or will be very shortly)

Covered in today's Financial Aid Podcast.

Posted by FinancialAidPodcast.com on August 7, 2006 at 7:55 AM | Leave a Comment (0)

One of the best ways to save for college is through a Section 529 college savings plan. Recent tax and regulatory changes are making these savings accounts an even better choice. The plans, named for a section of the U.S. tax code, are tax-favored programs set up by states to help families save for tuition, books, and other such expenses related to going to college. Savings in 529 plans grow tax-deferred, and withdrawals are tax-free when used for educational expenses.

Now, as reported by ABC News, the plans are getting even better as Maine and Kansas appear to be at the head of a trend by giving state income tax breaks to families which make a contribution to any 529 plan, even those sponsored by other states. If your family has not yet started a 529 plan, now is the time.

Posted by Steven Rothberg, CollegeRecruiter.com on July 6, 2006 at 3:12 PM | Leave a Comment (0)

Believe it or not, most colleges salivate at the prospect of a needy student with a 529 Savings Plan. It enables these “poor” institutions of higher learning to reduce financial aid dollar for dollar and enrich their billion dollar endowment funds.

529 Savings Plans are a financial hazard to the average family, and must be avoided at all costs. In the financial aid formulas, students have no asset protection allowance, and the following are considered student assets: cash, savings accounts, stocks, bonds, savings bonds, mutual funds, UGMA, UTMA accounts, a farm, a business, mortgages held and the net value of any real estate owned.

For college year 2007-2008, 20% of every dollar they have will be lost in financial aid. However, if the student is about to enter college and is unfortunate enough to have a hefty bank balance or brokerage account, it already cost them 25% or 35% in lost financial aid, depending on the college. Parents are more fortunate; they’re only assessed at 5.6% over their allowance which increases with age. Example: older parent age 48 in a 2 parent family = $45,000; a single parent age 45 = $19,700.

If a family will qualify for financial aid, and most do, then those with money in 529 Savings Plans face a far worse fate - all that money (often $100,000 or more) which could have been legally repositioned into financial vehicles that are not included in the financial aid formulas, will all be spent, often before graduation.

A number of states have made contributions state-tax deductible with North Carolina and Pennsylvania next in line. But here’s the rub. A 529 Savings Plan is considered a parent asset when calculating financial aid eligibility, and families will lose 5.6% of the value every year in financial aid. What’s worse is that colleges treat money in a 529 Plan as a resource, reducing financial aid dollar for dollar.

When confronted with the facts, financial aid officers nationwide have made comments such as: “Depending upon the value, there will be annual distributions to pay for tuition and fees.” “Our calculations may vary from year to year.” And this disturbing remark from a prestigious school in New England: “Financial aid is not the issue here, paying for the student’s education is.”

The sad truth is that literally tens of millions of dollars a year are unnecessarily wasted because families are not made aware of the consequences when setting up these accounts. Additionally, numerous brokerage firms have been sued and suspended for misrepresenting 529 Plans in general.

Posted by paylessforcollege.com on July 5, 2006 at 4:15 PM | Leave a Comment (0)