RSS 2.0 FeedDecember 16, 2010, Merrick Life
Paying for college
Civics host forum on paying for college.
It’s one of the major milestones in any student’s life – going to college. For parents it can be a tumultuous experience as well.
The last 12 years have been leading up to the moment when your child leaves the nest and enters those ivied halls. An emotional moment, no doubt, and an expensive commitment as well.
Through the coordination of Nassau County Legislator Dave Denenberg, and the cooperation of the North Merrick Community Association (NMCA) and the South Merrick Community Civic Association (SMCCA), a meeting was held at the Merrick Golf Club to advise parents and grandparents on financial aid and preparing for the costs.
The expert guest speakers, Wendy David-Gaines, Gina Pinos and Barry Fox, gave a multifaceted presentation designed to help parents cope with the process.
It always costs more
That is the warning issued by Ms. David-Gaines, author of “POCS: Parents of College Students” survival stories. While parents may be aware of the cost of tuition, and room and board, there are many other expenses that parents need to consider. What about travel? Will the parents be visiting the campus? How often will the child be traveling home?
Some college programs involve additional expenses, such as computers, art supplies and myriad other items, cautioned Ms. David-Gaines.
Interest on college loans is another consideration for parents, and the costs need to be factored into the equation.
More information is available at www.pocsmom.com.
Mr. Denenberg, who has a daughter in college, agreed that the cost of sending a child through college will be much more than is expected.
Berta Weinstein, vice president and secretary of the SMCCA, warned, “make sure you budget carefully and save.”
529 college program
As a parent of three children, Ms. Pinos explained the benefits of the 529 college savings program. The state comptroller’s office runs the program and Upromise is the record-keeper. Investments in the program are managed by The Vanguard Group.
One of the key features of the program is the state tax deduction that allows up to $10,000 contributed annually, said Ms. Pinos. When the money is used for college expenses, including items such as books, no tax gains are charged and there is no tax on the earnings.
Qualified withdrawals can be made directly to the school, or parents can be reimbursed for the expenses. Ms. Pinos said that proof of the expenses is not required, but parents could be asked for proof by the federal government. The IRS may require receipts.
Who is the account owner? Ms. Pinos said that the person opening the account is the owner and the student is the beneficiary. Owners were advised to name another party to administer the account should the owner die.
If the beneficiary should choose not to attend college, another family member can be named as the beneficiary.
The investments, managed by the Vanguard Group, are administered so that the higher risks are taken in the early years while the risks diminish as the time of college attendance approaches.
Alternatively, the owner can choose to customize the program to suit his or her needs and wishes.
Upromise is a shopping rewards program that “adds up over time,” said Ms. Pinos. The companies of the products purchased give something back for the products purchased.
Regardless of where the money comes from, the deposits made by parents, the gifts made by grandparents or other relatives, or the shopping rewards program, “the key is that it is growing tax free,” said Legislator Denenberg.
For further information on the plan visit the website at www.ny529atwork.com.
Financial aid counseling
Barry Fox has been delivering lectures on financial aid to many parents. One of the key components of realizing assistance is the completion of the free application for student aid (FAFSA), said Mr. Fox. This is compulsory for applying for some student grants and scholarships.
The information provided on the form is then processed and sent to the state and to the colleges to which the student is applying. The data is then used to determine eligibility for Pell grants, student loans and the family contributions that are necessary, said Mr. Fox.
For parents completing FAFSA forms for the upcoming school year, Mr. Fox stressed that it is important to recognize that all of the figures submitted on the form should relate to the year 2010, only.
It is also important to recognize which portions of the FAFSA form pertain to parents and which portions pertain to the students, and provide the answers that are appropriate.
In materials distributed by Mr. Fox at the meeting, a few scholarship search engine websites were suggested: www.fastweb.com; http://studentaid.ed.gov; www.hesc.com; and www.apps.collegeboard.com/cbsearch_ss/welcome.jsp.
In addition, Mr. Fox’s website is listed as www.barryfoxcollegefinance.com.
No doubt it is a difficult four-year road for many parents but Ms. David-Gaines concluded it is “the college condition parents are proud to have.”
