Financial Education By Carrie Maneikis

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Financial Education By Carrie Maneikis
Link To Article http//abcnews.go.com/sections/bus
iness/MellodyHobson/mellody_mail_031020.html
How to Get the Most Out of Your Childs College
Saving
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College Education Facts

• Prices Increasing
• Continuously Higher and Higher
• Families Concerned About Financial Aid
• What Colleges Look At For
• Financial Aid Eligibility
• Financial Aid Amount

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Where To Keep Money

• Keep Savings In
• Parents Name
• Parents Mistakenly Believe
• They will be penalized
• Not the case

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Students Contribution Facts

• Expected Contribution 35 Percent
• Student Assets Include
• Uniform Transfers to Minor Act
• Uniform Gift Minor Act
• Education Savings Account
• 529 Prepaid Tuition Plans

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Parents Contribution Facts

• Expected Contribution 5.6 Percent
• Better than Student Contribution
• 5.6 After Exception Based
• On Age and Family Size
• Retirement Assets Are Excluded
• 529 Savings Plans Are Included

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529 Savings Plans

• Once Money is Withdrawn
• Considered Student Income
• No Longer Parent Income
• Could Lower Financial Aid
• Student Income Expected to Cover More College
  Expenses

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Public College vs. Private College

• Federal Financial Aid Formula Excludes
• Home Equity

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• Federal Financial Aid Formula Includes
• Home Equity As Asset

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Federal Financial Aid Formula Changes

• Expected To Leave 84,000 Students
• Ineligible For Pell Grants
• Thousands Of Other Students
• Receive Smaller Awards

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Scholastic Performance Funding

• 750,000 Scholarships Available
• Totaling 1.2 Billion
• 331 Private Schools
• 76 Covered By Academic Scholarships
• 7,000 Average Award

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Best Solution

• Start Saving Early
• Be Mindful Of
• Pros
• Cons
• Carefully Research All Options