College Countdown
College Countdown
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COLLEGE
OUTSIDE PAYMENTS FOR A STUDENT
Tuition is not the only college expense. Thee are other expenses to consider, such as room and board, books, travel, and personal needs. Keep these in mind when you figure out your financial situation. Make sure you get a rough idea of your Expected Family Contribution (EFC). Once you have it figured out, the process of financial planning for your next four years will be easier. Every schools wants a FAFSA and some schools want The Profile. You must fill these out and get them to the appropriate agency or school on time, as soon after January 1st of your senior year as possible. This is the one thing you need to do if you want to be considered for financial aid. There are many ways to lower the cost of going to college. Look into 2-year colleges, tuition freeze programs, cooperative programs and AmeriCorps, for example. The Web has an invaluable amount of information on scholarships waiting for you. There are many forms to fill out and deadlines to meet, just for financial aid. Make good use of the financial aid timeline so you don't miss or forget any part of this very important process.
Credit card debt can bury a young person starting out on their own. Keep the credit card for necessary expenses and make sure all your payments have been on time. This will affect your future credit rating. When it is time to start paying on your Federal Student Loans, if applicable, make sure you always make your payments and always pay on time. If there is a problem, call the Department of Education and explain the situation. Don't default on your student loans. If you default, this will prevent you getting any future student loans and will affect your credit rating. Your credit rating will affect any future loan and its terms, such as for a car or housing.
520 Savings Plans are state-sponsored college savings plans that allow parents and members of the student's family to save for college. Members of the family include grandparents. These programs have expanded over the past few years. Do you research to see which plan works best for your state's regulations, tax benefits and your financial plan. As with any savings plan, the earlier you start the better.
OUTSIDE PAYMENTS FOR A STUDENT Family members (grandparents and others) may pay tuition expenses directly to the college or university and NOT have this count toward the individual tax-exempt gift limitation. So grandparents, this is a wonderful way of assisting your grandchildren. But you have to pay this directly to the institution -- you cannot send this money to your grandchild.
Internet Sites
U.S. Dept of Education's US Department of Education
Student Guide - US Department of Education www.ed.gov/prog_info/SFA/StudentGuide-1999-0/intro.html
© 2005 [Wildwood Country Press]. All rights reserved. Revised: August 09, 2005 . |
