1 / 31

AVID Family Workshop

AVID Family Workshop. Phantom of the Opera Paying for College March 24, 2009. Portfolio Contents. SAT/ACT. SAT: 02 May 2009 (International Registration Deadline 31 March 09) SAT: 06 June 2009 (International Registration Deadline 05 May 09) www.collegeboard.com

tivona
Download Presentation

AVID Family Workshop

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. AVID Family Workshop Phantom of the Opera Paying for College March 24, 2009

  2. Portfolio Contents

  3. SAT/ACT SAT: 02 May 2009 (International Registration Deadline 31 March 09) SAT: 06 June 2009 (International Registration Deadline 05 May 09) www.collegeboard.com ACT: 13 June 09 (Registration Deadline: 08 May 09)http://www.actstudent.org/

  4. Phantom of the Opera Ms. Sibayan’s MS AVID

  5. Paying for College The New Reality From Suze Orman’s 2009 Action Plan

  6. The New Reality • Real estate has decreased in value • Stock values decreased dramatically • Credit crisis

  7. The Good News • May 2008 Congress passed emergency legislation • Kickstarted the student loan market

  8. Important changes in student loans • Increased amounts students can borrow • Eased the terms of repayment

  9. How to proceed? • Depends on variety of factors: • Your age • Age of your children • How much money you have saved

  10. What you MUST DO in 2009 • If your child is headed to college within four years and your college savings are in the stock market, you should be phasing it out of the market so that it is 100% out by the time he/she is 17.

  11. What you MUST DO in 2009 • If you have a child entering college this year, look into getting a Stafford loan.

  12. What you MUST DO in 2009 • If parents need more, consider a PLUS loan.

  13. What you MUST DO in 2009 • Stay away from private student loans at all costs!

  14. Your Retirement Accounts • These must come first! • Especially important in these uncertain times • You need that money waiting when you retire. • Don’t divert this money to pay for college.

  15. Borrowing from Your Retirement? • Never a good idea to use this to pay for another expense • 2009 is doubly risky • Could also affect your child’s financial aid eligibility • Don’t touch your IRA or 401K or TSP

  16. Be Realistic and Honest • Seriously rethink what you can afford • The best school is one that provides a solid education and doesn’t put you in deep debt. • Keep an open mind. • Look at your in-state college system • Kiplinger’s “Best College Values”

  17. Want to start a college fund? • 529 Savings Plan is easiest and smartest • Earnings are tax-free • Withdrawals used for college also tax-free • Contributions can come from grandparents, relatives, and friends.

  18. Want to start a college fund? • Coverdell Educational Savings Accounts • U.S. Savings Bonds • www.savingforcollege.com (best site)

  19. Already have a 529K? • Do NOT move money out of it now! • If necessary, shift some money within the fund to stable-value account.

  20. Planning ahead . . . • Under age 14 100% stocks • Age 14 75% stocks • Age 15 50% stocks • Age 16 25% stocks • Age 17 0% stocks Adjust your portfolios now!

  21. College is here and you don’t have the money . . . • You have options! • STEP ONE: Your child, the student, applies for both subsidized and unsubsidized Stafford loans

  22. Stafford Loans • The cheapest loan options • 5.6% -6.8% interest • Can opt to pay interest now or later • Anyone can get the unsubsidized loans • Freshmen up to $5,500 • Sophomores up to $6,500 • Juniors and seniors up to $7,500

  23. How do you get a Stafford loan? • MUST complete the FAFSA! • Also necessary for any school financial aid • http://www.fafsa.ed.gov/

  24. You need more money? • STEP TWO: Apply for a Parental PLUS loan (also federal) • No income limit • Can borrow up to the full amount of college costs still needed • Current rate 7.9% -8.5% • Can defer repayment till graduation

  25. Your situation changes . . . • Contact the financial aid office immediately!

  26. Honesty • You must limit what you borrow to what you can truly afford • College Board has calculators for costs of repayment on PLUS loans

  27. Honesty • Consider less-expensive schools • Have the child earn some money • Make the hard choices

  28. Other points to remember • Let Uncle Sam pay • Most F.A. comes from the colleges • You must apply • Consider colleges that WANT YOU!

  29. What Parents Can Do • Advocate for your child • Learn and play “the game” • Support your child The College of the Holy Cross 2006 Washington University in St. Louis 2002

  30. NEXT WORKSHOP TBA May 2009 See you there!

More Related