PARENTS LOOKING FOR WAYS TO PAY COLLEGE TUITIONS.Byline: Vivian Marino Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Cynthia and Joseph Lapp were delighted when their bright, ambitious daughter Katie was accepted to two prestigious colleges and offered sizable financial aid packages by each. Trouble is, the Wenonah, N.J., couple still can't afford to send the 17-year-old honor student to either school. The Lapps have to come up with tens of thousands of dollars to meet their share of Katie's tuition over the next four years, while also paying for daughter Amanda, 19, to attend college. Joey, 15, graduates from high school in three years, and they'd like to give their two other children, Anna, 7, and Alexandra, 3, the opportunity of a higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. as well. ``We don't want to run ourselves too far into debt,'' said Lapp, a 40-year-old homemaker. (Her husband, also 40, is a seaport engineer.) ``We want to be able to retire sometime and not be eating cat food.'' Financial planners Financial Planner A qualified investment professional who assists individuals and corporations meet their long-term financial objectives by analyzing the client's status and setting a program to achieve these goals. agree parents should save and invest regularly for college as soon as their children are born. But with education costs exceeding the rate of inflation and many households facing other financial burdens like buying a home or saving for retirement, few heed such advice. Now, as the deadline for college acceptances comes and goes, many households will be spending the next few weeks scrambling for fall tuition - with limited options. ``I have met 35,000 parents over the years, and found that only three or four have saved enough for college,'' said Raymond D. Loewe, president of College Money, a Malton, N.J., college-planning firm counseling the Lapps. ``It seems as though most parents who have between 1.5- to 2 years (of tuition) can make it without too much of a problem. If they have less, they can make it, but it's going to be hard.'' With the clock ticking One increment, or pulse, of the CPU clock. See clock speed and clock. for grants or scholarships at many colleges, the most viable last-minute solutions are to borrow or appeal for more aid from the schools. Bob Mahmoudi, president of College Planning Solutions Inc. in Kirkland, Wash., said parents should consider home equity loans since the interest is tax deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). for most people who qualify. If rates are favorable, homeowners might also refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. their mortgages - borrowing a bit more to fill the tuition gap - and receive a tax deduction Tax deduction An expense that a taxpayer is allowed to deduct from taxable income. tax deduction See deduction. for the interest and closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, , he said. The main drawbacks: It will take longer to get the home paid off, plus you might not have enough equity to tap for the tuition payments, especially if junior plans to attend a six-figure private school. Annual tuition bills last year averaged $18,800 for private colleges and $9,000 for public universities. And there's room, board, clothes and other expenses to consider. Federal student loans are another option. But applications should be sent in soon since lenders are getting swamped "Swamped" is the seventeenth episode of The Batman's second season. It originally aired in North America on June 11, 2005. Plot Synopsis Killer Croc, a half-man, half reptile plans to submerge all of Gotham in water in order to facilitate his plundering of the city. . (Average processing time varies from about three or four days to three or four weeks.) ``This really is the busiest time of year for folks shopping for student loans,'' said Josh Dare, a spokesman for the Student Loan Marketing Association, or SallieMae, which administers the program. As much as $29 billion is expected to be lent out this year through 1,200 financial institutions and 5,000 schools, up from an estimated $27 billion last year and $24 billion in 1994, Dare said. In 1985, student loans totaled $9 billion. Parents can borrow up to 100 percent of their children's college expenses, minus any other aid received, through federal Parent Loans for Undergraduate Students, known as PLUS loans. While the interest isn't tax deductible, annually adjusted rates are competitive - 3.1 percentage points above a one-year Treasury note, with a current 9 percent cap. The current interest rate is 8.98 percent; the next adjustment is July 1. Students can apply for federal Stafford loans A Stafford Loan is a student loan offered to eligible students enrolled in American institutions of higher education to help finance their education. The terms of the loans are described in Title IV of the Higher Education Act of 1965 (with subsequent amendments), which guarantees . There are basically two kinds: subsidized sub·si·dize tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es 1. To assist or support with a subsidy. 2. To secure the assistance of by granting a subsidy. , which means the government pays the interest while the student is still in school based on need, and unsubsidized. The advantages are that repayment doesn't begin until six months after graduation; for PLUS loans it's 60 days. And the rate is lower - 8.25 percent, also non-deductible. However, unlike the PLUS program, there are borrowing limits depending on the year in school. For example, freshmen can borrow only up to $2,625 while juniors and seniors each have a $5,500 annual limit. Federal Perkins loans A Federal Perkins Loan, or Perkins Loan, is a need-based student loan offered by the U.S. Department of Education to assist American college students in funding their post-secondary education. The program is named after Carl D. Perkins, a former member of the U.S. , with a low 5 percent interest rate, also are available through schools and based on financial need. And there are supplementary loans, including work-study programs Noun 1. work-study program - an educational plan in which students alternate between paid employment and formal study didactics, education, educational activity, instruction, pedagogy, teaching - the activities of educating or instructing; activities that impart that allow students to earn a portion of their college expenses. Besides borrowing, parents might also consider appealing to the school for help, effectively shaving tuition costs by negotiating a sweeter financial aid package. ``Schools won't actually lower your tuition,'' said Loewe. ``They'll give you a scholarship or grant ... or package, which in effect, is a discount. ``The schools most willing to negotiate are those that have empty seats. Of course, it also helps if you have a smart kid.'' TUITION TIPS A few last-minute suggestions for meeting college expenses: Negotiate a lower tuition. Some colleges, particularly lesser-known private schools, are clamoring clam·or n. 1. A loud outcry; a hubbub. 2. A vehement expression of discontent or protest: a clamor in the press for pollution control. 3. A loud sustained noise. to fill vacant desks and dorms and may effectively lower tuition for certain students through increased financial aid. Keep in mind: The best aid packages usually go to the best students, those with strong academic and outside achievements. It also helps in bargaining if a competing institution has offered more aid. Take out a college loan. Students can apply for federal Stafford loans. In some cases, the government will subsidize sub·si·dize tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es 1. To assist or support with a subsidy. 2. To secure the assistance of by granting a subsidy. the loan by paying the interest while the student is still in school. However, there are borrowing limits depending on the year in school. Parents can borrow up to 100 percent of their children's college expenses, minus other aid, through federal Parent Loans for Undergraduate Students. The rate is slightly higher than on Stafford loans. Get a home-equity loan Home-Equity Loan A consumer loan secured by a second mortgage, allowing home owners to borrow against their equity in the home. The loan is based on the difference between the homeowner's equity and the home's current market value. or refinance your mortgage. The main advantages are that they are tax deductible. The disadvantages is that it will take longer to get the home paid off, and parents might not have enough equity to tap in their homes for the tuition payments. Try a community college or lower-priced state school first. There are many good ones available at affordable prices. Students can take all or most of their basic, required courses there, then transfer to another school and concentrate on their major. SOURCE: Associated Press CAPTION(S): Box Box: TUITION TIPS (See text) |
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