College Planning & Financial Aid

Generally, you should consider consolidating if there currently are lower interest rates available with minimal or no loan origination fees. Also, verify that there are no penalty fees on the old loans for pre-payment. Other reasons to consider when consolidating is whether you will have trouble keeping track of, or paying, the monthly payments. Stretching the term of the loan will lower the monthly payment, but will increase the total interest cost over the term of the loans. Speak to your local CPA to see if loan consolidation is beneficial for you.

The total costs will vary substantially from school to school. As a general overview, the net cost to you each year will be the gross costs of tuition, room and board, fees, books, supplies, transportation, extra spending money, minus federal and/or state financial aid, scholarships, grants, awards and loans. Generally, financial aid and loans are paid back 6 months after the student graduates or leaves school. Generally, scholarships, grants and awards are monies given that are not required to be paid back. Generally, the better the student's grades, SAT's and/or ACT's and outside activities are, the higher the scholarships, grants and awards that may be offered. The sticker price of studying and living on campus at the average public university rose 5.4% for in-state students, or about $1,100, to $21,447 this fall, the College Board estimated. The chief cause of that increase was a dramatic spike in tuition and fees at hundreds of public universities. Tuition at the average public university jumped 8.3% to $8,244. Fewer than half of all public university students pay the full sticker price to attend. Federal surveys show at least 52% of all students at public four-year universities receive scholarships or grants. Aid, not counting loans or campus jobs, brought the net tuition paid by the average student at a typical public university to about $2,500, the College Board estimates. That brings the total average net cost of a year on campus (including dorm, books, travel and living expenses) to $11,400

Under the current needs analysis methodology approved by the U.S. Congress, the value of your retirement plans (401K, IRA's etc.) is not considered an asset and not reportable. Money you save in your child's name is counted as an asset and reduces your eligibility for financial aid.

Named after IRS Code Section 529, it is a qualified state tuition plan.
A contribution to a qualified plan is treated as a completed gift passed from a contributor to a beneficiary. Contributions are eligible for the annual gift tax exemption of $13,000. Married couples can gift up to $26,000 a year.
Investment earnings within college savings programs grow federal income tax deferred.
The investment earnings are taxed at the student's rate when withdrawn for college tuition and room and board. You can use the College Savings Program assets to pay any type of qualified higher education expenses such as tuition, fees, room and board, books and supplies.
College Savings Program funds can be used at any accredited post-secondary public or private school eligible to participate in federal student financial assistance programs anywhere in the U.S. This includes any 2 and 4 year undergraduate programs, technical schools plus graduate and professional schools.
Funds can be withdrawn without penalty if the beneficiary receives a scholarship (withdrawals can be made up to the scholarship amount) or in the event of the death or disability of the beneficiary. Ordinary income taxes will be owed on any investment earnings.
State tax treatment of contributions may vary. You can take money out of a 529 plan at any time. Your investment earnings are subject to income taxes at the account owner's tax rate plus a 10% federal tax penalty. State income tax treatments on 529 Plan's nonqualified withdrawals vary by state.
There are pros and cons to this tax strategy. These accounts may be considered the child's asset when determining financial aid.

The federal FAFSA financial aid analysis no longer counts the equity in your primary residence as an asset. However, many independent, private schools ask this information when making their own financial aid determinations.

the SAT is the benchmark standardized assessment of the critical reading, mathematical reasoning, and writing skills students have developed over time and that they need to be successful in college. Each year, more than two million students take the SAT. Nearly every college in America uses the test as a common and objective scale for evaluating a student's college readiness.

The ACT Assessment is a standardized college entrance examination that measures knowledge and skills in English, Math, Reading and Science. The exam consists of 4 multiple choice tests. Here's an overview of the past ACT tests: English included 75 questions and allowed 45 minutes. It included punctuation, grammar and usage, strategy, sentence structure, organization and style; Math included 60 questions and allowed 60 minutes. It included Pre-Algebra, Elementary Algebra, Intermediate Algebra, Coordinate Geometry, Plane Geometry and Trigonometry; Reading included 40 questions and allowed 35 minutes. It included Humanities, Prose Fiction, Social Studies, and Natural Sciences; Science Reasoning included 40 questions and allowed 35 minutes. It included Chemistry, Physics, Biology and Physical Science. Students are not penalized for incorrect responses. The composite score is the average of the four scaled scores.

2012 ACT Test Dates are 2/11/12 and 4/14/12 and 6/9/12 & Registration Deadlines are 1/13/12 and 3/9/12 and 5/4/12. Verify these dates with your High School guidance counselor.

The four-hour test consists of four sections, each measuring one of the basic language skills (while some tasks require integrating multiple skills) and all tasks focus on language used in an academic, higher-education environment. Note-taking is allowed during the iBT. The test cannot be taken more than once a week.