financialforum
Thinking Ahead
With higher-education costs continuing to rise faster than the
rate of infl ation, it’s important for families to have a college-
funding plan. Phil Dyer, CFP, provides helpful tips and resources.
A
ccording to the College aid, because many other programs (such
Board, the average annual cost as work-study arrangements) are predi-
of a four-year public college is cated on completing the FAFSA.
$6,585 (up 6.4 percent from 2008) and the Fully explore funding options: Unfor-
average private college cost is $25,143 (up tunately, many parents and grandparents
5.9 percent from 2008). In addition, college don’t seriously start researching funding
seniors are graduating with more debt than options until their child or grandchild’s
ever; approximately $21,000 for the class junior or senior year in high school. Make
of 2007, according to the Institute for Col- sure you leave no stone unturned in seek-
lege Access and Success. With the assets ing scholarship money, grant money, al-
New GI Bill Offers
of many families signifi cantly reduced by ternative education programs, and other
Benefits Transfer
market turmoil, what can you do to protect funding sources. For instance, many
■ The Post-9/11 GI Bill yourself against these steep jumps? military-friendly organizations have ro-
allows servicemembers
Consider the following action plan: bust scholarship programs, but you must
to transfer their unused
Get educated: The college-funding apply early. Many states have very attrac-
education benefits to
their spouse and chil-
world is full of confusing acronyms, tive fi nancial aid packages for children of
dren. To learn more,
such as FAFSA (Free Application for disabled veterans. Finally, for those on ac-
visit
www.gibill.va.gov. Federal Student Aid), EFC (Expected tive duty after Aug. 1, 2009, the new Post-
Family Contribution), and SAR (Student 9/11 GI Bill will have transfer options for
Aid Report). If you are not familiar with spouses and children.
these terms and how college aid works, Take advantage of saving opportunities:
it can cost you. Your fi rst visit should be Section 529 college saving programs and
to
www.fi naid.org, a nonprofi t Web site Coverdell Education Savings Accounts
that explains how college fi nancial aid are great options for accumulating college
works, what the primary funding tools funds. These accounts allow you to save
are, and how to avoid common pitfalls money tax-deferred and withdraw it tax-
to maximize your child or grandchild’s free for qualifi ed higher education expens-
chance for a good fi nancial aid package. es. MOAA has partnered with Vanguard to
It also links to many other Web sites you offer a military-friendly 529 plan. Find out
will need for your funding plan, including more at
www.moaa.org/529. MO
www.fastweb.com.
Avoid common mistakes: While we all
— Former Army Capt. Phil Dyer, CFP®, is
want our children and grandchildren to
deputy director, Benefi ts Information and Finan-
be successful, don’t shortchange your own
cial Education. To fi nd a fi nancial planner near
you, contact Garrett Planning Network at
retirement savings to fund college costs.
(866) MOAA-GPN (662-2476) or
www.moaa
Also, make sure you submit the FAFSA,
.org/garrett, or visit
www.moaa.org/fi nancial
even if you think you won’t receive any center for other resources.
50 MILITARY OFFICER SEPTEMBER 2009 PHOTO: SEAN SHANAHAN
SSept_forum.indd
50ept_forum.indd 50 77/31/09 12:48 PM/31/09 12:48 PM
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