THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Sunday, October 6, 1996 TAG: 9610040207
SECTION: CHESAPEAKE CLIPPER PAGE: 06 EDITION: FINAL
SOURCE: BY JENNIFER C. O'DONNELL, STAFF WRITER
LENGTH: 74 lines
Parents preparing to send a child to college might want to consider attending the college planning workshop at Russell Memorial Library Tuesday from 7 to 8:30 p.m.
The workshop is the first in a series of two on the topic and will be conducted by Stephen E. Smith, a personal financial adviser with American Express Financial Advisors.
According to Smith, the workshop is appropriate for parents with children of all ages. In the past, his clients have included couples looking for financial help just months before their child left for school as well as parents still anticipating the birth of their children.
``I've had clients who have given me the future birthdates of their children and asked for help in planning for college costs,'' said Smith.
According to Smith, the most common mistake parents make when considering financial aid is not considering it as an option.
``A lot of them think they just won't qualify because their household income level is too high or because they think they have too much in savings,'' he said. ``But the truth is, some of the federal programs are pretty liberal with eligibility.''
Another mistake often made by parents of future coeds is their failure to establish an overall financial plan on how they will meet tuition bills.
``You need a good solid plan to put it all together,'' said Smith. ``That's the only way to make sure your child will get the education you want.''
College tuition costs have traditionally out-paced inflation, said Smith, and, according to The College Board, a four-year education these days doesn't come on the cheap. According to The College Board's 1994 figures, a four-year stay at a private institution will cost $92,278. A four-year public education costs $44,100.
To avoid having to foot the bill all by yourself, Smith offers the following tips:
Plan early. The sooner you start establishing a plan the better, said Smith. ``What you and your spouse decide to do will depend on how long you have before your child starts school,'' he said. ``Couples with small children need to consider their investment options while those with older children will need to place a heavy emphasis on finding loans, grants and scholarships.''
If you don't get a good start on financial planning for college, Smith said not to let that deter you.
``It's never, never too late to do something,'' he said.
Don't underestimate Uncle Sam. ``The biggest part of financial aid comes from the federal government in the form of loans and grants,'' said Smith. ``On some loans, interest is suspended or reduced, depending on the program and your circumstances.''
When determining what program might work best for you, Smith advises parents to enlist the help of their students as well as their high school guidance departments.
``Put your child in charge of finding out about financial aid. Get them motivated,'' he said. ``Students can do a lot of leg work themselves.''
Even if you or perhaps an older child never qualified for federal aid, Smith said to explore the option anyway.
``The laws change every year,'' he said.
Consider all options. Federal loans and grants might not be your only option, according to Smith.
``There are other sources of funding in the form of scholarships and private funding,'' he said. And if your child won't be packing for several years, Smith encourages parents to explore investment options.
``There's a lot of misunderstanding out there about saving for college. Parents need to know how to start and what types of investments are appropriate for them.'' MEMO: To reserve a seat at the college planning workshop, call Russell
Memorial Library at 465-0949. The second session of the workshop is
scheduled for Nov. 12.
KEYWORDS: EDUCATION by CNB