Your financial goals: College education

                          Your financial goals: College education

Saving for education
Are you planning to help your children or grandchildren with their education expenses? Or thinking of taking classes yourself? There are many options to help you achieve this goal.

Determine your education needs
You can begin to create a college savings plan by defining your education needs and preferences:

• Would you prefer a private or a public school?
• What will it cost? How much is too much? Make sure you take college inflation rates into account.
• How long will it take, or how long do you have, to save?

The cost of college education
College costs increase at about twice the rate of inflation, from 5% to 8% per year. And these costs are already steep. According to google.com search over the India, the average tuition and fees for 2011 – 2012 for students are:
.

Type of college or university	Cost per year**
Two-year public college in state	Rs. 1,50,000
Four-year public college/university in state	Rs. 4,00,000
Four-year public college/university out of state	Rs. 8,00,000 or more
Four-year private college/university	Rs. 15,00,000

**In addition, you may have to pay for room and board. In 2011 – 2012, average room and board costs for a public four-year college or university full time is Rs. 4,44,350

Several other factors may also affect the cost of an education:

• Student’s age
• Academic record
• Financial aid opportunities
• Scholarships available
• Degree goal
• Housing costs (on- or off-campus)
• Military service

Common college saving plan options

•  Accounts  allow you to make an irrevocable gift to a minor to an account that your child ultimately controls when he or she turns 18 or 21 (depending on state law). He or she will be able to use the funds for education and other expenses.
• College savings plans are generally sponsored by states, state agencies or educational institutions for college tuition and expenses. These investment plans stay under your control and offer certain tax and contribution advantages.
• Education Savings Account (ESA)  You can contribute to this investment account until children turn 18 unless the child is a special needs beneficiary. This type of account can be used for elementary, secondary and college expenses and tuition. It includes tax benefits but has a maximum contribution limit of (Find as per you state rules) per year.
• Traditional/Roth IRAs. Penalty-free distributions are allowed from IRAs for eligible educational expenses for you, your children and your grandchildren. (Income taxes may apply to IRA and Roth IRA withdrawals). IRAs are not counted as assets for financial aid calculations, but withdrawals are considered financial aid income for parents.
• Other options. In addition to savings, current income and borrowing, there are other ways to finance higher education:
  • Financial aid from federal and state governments
  • Work-study programs or a part-time job for the student
  • Loans from private, federal and college sources
  • Scholarships and grants from different sources
  • Family gifts

Borrowing from your retirement account to pay for education expenses

Borrowing from your home equity or retirement account — or reducing your retirement savings contributions to help pay for college — is an option. However, doing so could mean you’ll need to work longer than you planned before retiring. Encouraging your child to take out a loan for college, such as a Stafford loan, may mean that he or she will graduate with some debt. But remember that he or she will also have a much longer period of time to pay off the loan.

Other financial considerations for a college savings plan
As you explore college financing options and determine which program, or combination of programs, will best meet your needs, you may wish to talk to a financial advisor to guide you through the finer points such as:

• How does saving for education fit into your financial life? How can you resolve competing needs to save for retirement and a child’s education?
• What calculations are used by institutions in determining financial need?
• How will a college savings plan affect your taxes, financial aid eligibility and tax credits?
• What investment options do you have based on your risk tolerance and when the funds will be needed?
• Which currently held funds are accessible and what are the penalties for early withdrawal?

 (Note: As Per Indian, you search in google to get perfect plan while you are studying)

Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your life Goal.

Your financial goals ( 7 Days – Comprehensive Course)

1. College education
2. Business ownership
3. Investment planning
4. Estate planning
5. Insurance
6. Long-term health care
7. Charitable giving

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This Completes the List of Courses.

Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.

Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?