The Greensheet (Houston, Tex.), Vol. 41, No. 536, Ed. 1 Thursday, December 9, 2010 Page: 23 of 52
fifty two p. : ill.View a full description of this newspaper.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
December 9-15, 2010
Page 23
= \
Wondering How To
Pay For College?
FIRST, DON’T PANIC
(NAPS)-The first
thing any parent
hoping to send their
child to college should
do is not let the latest
news headlines panic
them. Sure, the
federal government
now faces what might
kindly be called a
“cash crunch,” but-
assuming you were
counting on
Washington for
financial aid, that
mostly means you
need to stay more alert than ever to any changes in
programs meant to encourage higher education.
And especially if your child is still young. . .well,
remember the main thing you’ve got on your side is
time.
“Saving for college is, at its best, a long-term
endeavor,” notes Carey Foran Hoch, general manager
of John Hancock College Savings. “It often can begin
or be maintained with relatively small amounts of
money, and there’s little reason to wait until the
financial turbulence is over.”
So what should be done now? Experts say step No. 1
is to sit down and estimate tuition costs at the time
your child will likely be starting college. (To give you
some idea what’s in store, the current average for
tuition and room-and-board expenses at public
universities is $14,333 per year for in-state students
and $25,200 for those out-of-state, according to
College Board data. Private university costs average
an even higher $34,132 annually.) Calculators on Web
sites like Savingforcollege.com and
Johnhancockfreedom529.com make such projections
relatively simple by letting you fill in the answers to
questions like public vs. private and two years vs. four
years.
Once you’ve got a ballpark figure, again, don’t panic,
think about which funding sources can be tapped to
cover it. Basically, there are only five options:
• Personal savings
• Financial aid, like scholarships and grants, that
needn’t be repaid
• Financial aid that does need to be repaid (i.e.,
federal and personal loans)
• The student’s own contribution
• Other contributions from, say, grandparents, Except
for the first one (and possibly the fourth), you’ve got
little to no control.
Personal savings, of course, can take many different
forms, Coverdell education savings accounts, 529
savings plans, taxable investment accounts, Series EE
and Series I savings bonds, and UGMA/UTMA
accounts, and what works for one family may not
work for another.
But say you’d like to at least have the option of
socking away as much as $300,000, per beneficiary,
depending on the state you live in. Not only does a
529 plan allow you to do that, but the tax benefits can
be extremely attractive: Growth in its underlying
portfolio of funds is tax-deferred, and there’s no
federal tax on any distributions used for qualified
education expenses like tuition, fees, books, and room
and board. (State tax treatment varies.)
What’s more, with many investors having lately
discovered their tolerance for risk isn’t as great as
they thought, 529s let you select, or not select an age
based portfolio that automatically becomes more
conservative as the beneficiary nears college age.
“Even if you choose an investment option that doesn’t
automatically adjust,” says Hoch, “you might want to
move to a conservative portfolio one to two years
before your child enters college. That should increase
your ability to protect what you’ve saved in the event
of a downturn.”
Which brings us to the fourth “possible” option on any
funding list.
That’s right, the student’s own contribution.
Whether out of financial necessity or an effort to
instill a sense of personal responsibility, experts say
they’ve noticed a marked increase in the number of
parents either encouraging or expecting their child to
kick in for their college costs.
And really, when you think about it, it makes perfect
sense. If you agree that the initial commitment
parents make to saving for college demonstrates the
value of an education to children, these same experts
ask, then shouldn’t having children share the
financial burden deepen their commitment to
learning?
You can put that question on a different list of things
to ponder.
7
Saving for college can begin
with relatively small amounts
of money.
r
Services
T
1
r
Credit/Financial
l
Simple
Advertising
For Today's
Families
Advertise With
The Greensheet,
On Print At
713-371-3600
Or Online At
www.thegreensheet.com
Car
T i
UP TO $
Up to 48% Lower Fees
OA N S
Low Monthly
Payments Include'
Principal & Interest'
You Keep the Car! • No Credit Check • Must Have Clear Texas Title
Apply online @ WWW.ADVANTAGEFINANCELLC.COM
T13-7T4-1011
Stuck in a
30-Day Title Loan?
WE CAN HELP!
7324 SW Freeway Ste. 214
(59 @ Fondren in Arena Towers #2)
8320 Gulf Freeway Ste. 204-A
(In Gulfway Plaza on I-45 between Broadway & Howard near Hobby)
*Some restrictions apply. Call for details.
We are a registered credit service organization
registered with the State of Texas.
525 N Sam Houston Pkwy E Ste. 210
(On Beltway 8 between i-45 & South Hardy near Greenspoint area & Intercontinental)
126051-10 East #505
(1-10 ©Federal Rd • Inside Bank of America Bldg.)
**As compared with competitor’s published terms.
Get up to$20,000 Today!
Fast, Friendly, Confidential service for over 10 years!
Cash Advances
up to $2,000
All it takes is:
• Recent Pay Stub
• Driver’s License / State ID
• Checking Account
Title Loans
up to $20,000
All it takes is:
• Clear Title
• Driver’s License
Installment Loans
up to $2,000
All it takes is:
• Recent Pay Stub
• Driver’s License / State ID
« Checking Account
cashstore.com
24 hour online applications for your convenience
Bellaire
Bellaire Blvd. /
5212 Bellaire Blvd.
NWC of Bellaire & Bissonnet St,
(713) S3 9-1734
Houston
N. Eldridge
Pkwy
12621 FM1 960 W.
Next to Target
(281)807*3957
Houston
W. Sam Houston Tollw,
[Beltway 8)
I CASH I
I STORE I
iyN,
Elms worth Dr.
Wal-
Mart
9404 W, Sam Houston Pkwy.South
Across from Wal-Mart
(281)983-0004
Houston
1901 Taylor St.
Next door to Target
(713)859-3891
Houston
Shado
wbriar Dr.
I CASH I
| STORE |
Westheimer Rd.
12350 Westheimer Rd.
NEC of Westheimer & Shadowbriar
(281)556-6800
/v i A # cashstore.com Call, Click, or Come in Today!
Restrictions apply, see store for details. 50% off the finance charges accrued as of your first scheduled payment with a first time advance or loan. Finance
charges include interest and CS0 fees (where applicable] only. Available only to new customers of the Cash Store and subject to loan approval
(minimum 5100 loan). Must present original coupon at time of loan approval. Payment will be mailed as a rebate check within 30 days of completion
of first scheduled payment Your account must be in good standing at the time of the rebate payment Offer is not valid with any other offers and is
good at participating locations only, One coupon per household and not available to employees of the Cash Store ortheir family members, loans in
Texas are provided by a non-affiliated third party. Offer expires 12/30/2010. 2109-7021
'Some restrictions may apply. See store for details. Cast) Advances are not intended to meet long-term financial needs: they should be used
only to meet short-term cash needs. Loans are provided by a non-affiliated third party. Vehicle is subject to evaluation for title loans.
Section continues ...
>
Business 713-371-3500 Personal 713-371-3600
Visit us at thegreensheet.com
Southwest Houston Greensheet
Upcoming Pages
Here’s what’s next.
Search Inside
This issue can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Newspaper.
The Greensheet (Houston, Tex.), Vol. 41, No. 536, Ed. 1 Thursday, December 9, 2010, newspaper, December 9, 2010; Houston, Texas. (https://texashistory.unt.edu/ark:/67531/metapth515468/m1/23/: accessed July 12, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; .