Principles of Saving for Retirement

Occasionally, some deep thinkers come along with advice so excellent and points of reference so basic that I feel compelled to pass them on.

Naturally, I wouldn't pass them on if I didn't also agree with them. I think they form a solid basis for your progress on getting that house next to the 16th green for your retirement (if that's what you want).

Miles to Go

The first set of principles come from my old pal and colleague, financial planning whiz Raymond J. Lucia (or Ray Lucia, as I call him). He's written a fine new book called "Ready...Set...Retire!: Financial Strategies for the Rest of Your Life" in which he lays out the six most fundamental considerations for retiring.

Before he even gets to those, though, he insists that you consider how long you're likely to live. Of course, none of us knows the date we'll die, but you can assume that if you make it to 65, you have a darned good shot of making it to 83. And if you're a couple who makes it to 65, there's close to a 40 percent chance you'll make it to 90.

The web site for Northwestern Mutual, a large life insurance company, can help you estimate your longevity. But the main point to bear in mind is that you're probably going to live about 20 years after you retire. That's a long, long time if you don't have enough money saved up.

The Six Principles

With that in mind, Ray presents the bedrock principles that will influence how you live financially after you retire. Specifically, they are:

1. How much you save.

Simply put, if you're a typical American (who happens to save close to zero right now), you have to save more. When you're young, 10 percent of your income will get you there. If you don't start saving until middle age, aim closer to 15 or 20 percent. If you don't start until later than middle age, save every penny you can even if your only in college.

2. How long you give your savings to compound.

The great Milton Friedman famously said that the greatest invention of man was compound interest. Maybe he was joking, maybe not.

In any event, compound interest is a great gift to young people. If you start early, tiny amounts grow to immense amounts, and pretty soon you're all set for retirement. My pal, the genius investment advisor Phil DeMuth, says that if you're old enough to start thinking about sex, you're old enough to start saving for retirement.

A thousand dollars socked away when you're 20 and growing at 10 percent per year will be almost $73,000 when you're 65. The same sum saved when you're 50 will grow to $4,200 at age 65. That's a stunning truth that should compel any young person to start saving early -- and the rest of us to start right now.

As for timing your retirement, Ray advises that if you can push it back by even five years you'll allow your money to grow and have fewer years to need it.

3. How you allocate your assets.

Typically, for those who start early, stocks are the answer. Over long periods, a diversified basket of common stocks wildly outperforms bonds, cash, and real estate. The differences are breathtaking.

But, as we've seen lately, there's also a lot of volatility in stocks. As you age, you'll want more of your money in bonds and money market accounts. These have lower returns than stocks, but they also have far lower volatility.

common stock index such as the Vanguard Total Stock Market Index (VTSMX and half in the Vanguard Total Bond Market Index (VBMFX).

To me, that's a bit conservative if you're young like in college. I would have more in stocks and also a good chunk in international markets. (Phil has written a fine book about supercharging your portfolio that will be out in a few months. It's far beyond his basic portfolio in sophistication and returns, so watch for it.)

Ray has a portfolio that he uses in his "Buckets of Money" strategy that uses stocks, bonds, variable annuities bought with a sharp eye on fees, and real estate, and his returns have been excellent.

4. How much your investment returns annually.

Now, this is largely unknown from year to year. But over long periods, stocks return close to 6.5 percent after inflation, and about 10 percent before inflation.

The supernova-genius of investing, the investor's absolutely best pal ever, John Bogle, who founded index investing through Vanguard Funds, says -- and his evidence is powerful indeed -- that you'll do best as a stock investor with index funds that cover the largest possible universe of stocks in the free world. These tend to be very low-cost in terms of fees and loads (sales charges), and beat almost all actively managed funds in terms of return over long periods.

I heartily concur. I would add that it's also helpful to juice up your portfolio with real estate, and to lean toward high-dividend and real estate funds.

5. How low you keep your fees and costs.

This principle is largely about using index funds and no-load mutual funds, which makes perfect sense.

6. How closely you keep an eye on taxes.

Finally, Ray advises maxing out your tax-protected accounts like IRAs and 401(k)s; keeping high-dividend stocks in accounts that are tax-deferred; and, when retiring, carefully considering what bracket you'll be in and drawing out your funds to remain in the lowest possible one.

Remember the Basics

These are basic principles to be sure, but they're vital. The three most important to remember are: 1) Start saving for retirement when you're young like in college; 2) Save as much as you can; and 3) Maximize your returns by using index funds with low costs and high diversification. (Diversification and time are probably the investor's best friends.)

It may sound simple, but it isn't easy. If you're diligent, though, you'll be well on your way to that house on the fairway.

Have a great day and God bless!

Insider's Look at Online Learning

Susan Aaron, The Learning Coach

Ever wonder what e-learning is really like? Do you have what it takes to be a successful online learner? Cheryl Shutt and Geoff Maffett, who have both taken master's-level classes at the University of Illinois Online, and Ben Smith, a business student at the University of Phoenix, share their experience and offer their advice for learning virtually.

The Realities of Virtual Learning

It's Hard Work. There's a false perception that online classes are easier than traditional ones. Smith, Shutt and Maffett all noted the heavy workload involved and the amount of reading required. In addition to homework, the class must be read. One shouldn't expect to get by with sitting quietly or to be drawn out, either. All three students mentioned the need for self-starting behavior.

It's Fast-Paced. The speed of online courses surprised all three.

Smith: "My first impression was, 'Wow, this course really moves.' I remember writing two and three papers a week in certain classes."

Maffett: "[Online learning gives you the] ability to work faster than the pace that is set in most classrooms, [which] seems to be designed for the slowest participant!"

It's a People-Oriented Atmosphere. Rich interactions with your college classmates are an element of the online classroom that overturns the common perception that this type of learning is an isolated endeavor.

Shutt: "Communicating by email with classmates and instructors was wonderful and let us receive individual attention."

It Really Is Convenient. All three mentioned the convenience and flexibility of online education as a key reason to try this approach.

Shutt: "Online classes allow you to take classes regardless of the hours you work or where you live."

Maffett: "I was able to complete my master's degree without having to attend classes. This was vitally important since I was transferred from Illinois to North Carolina in the middle of my graduate studies…I was also able to do my coursework while I was traveling for business."

It Can Be Technologically Challenging. Most difficulties with online learning were related to technology. Shutt mentioned that it takes some time to learn how to get around in an online classroom, suggesting students devote time before a course starts to getting acquainted with the environment. She also had problems with the real time chat due to slow typing skills.

They also mentioned that extra communication might be necessary when working online to overcome the lack of visual cues present in a conventional classroom.

Maffett: "When online teams worked on a common project, it was difficult to fairly distribute the workload and manage the revisions…We had to develop some clear rules for who worked on what when."

Strategies and Advice for New Online Students

If you're thinking about taking courses online, be sure to review Smith, Shutt and Maffett's tips for managing your online education:

• Set up a schedule for yourself, and try to stick to it.
• Get all the books ahead of time if possible.
• Keep up with assignments to avoid being overwhelmed later.
• Read through all the message postings from faculty and students each day.
• Use email regularly to contact your fellow classmates.
• Don't hesitate to email your instructor if you need help.
• Don't be a wallflower.
• Realize you have less opportunity to interact with peers and professors in real time.
• Team projects may take more time than you would expect -- be prepared for this.
• Try to attend any optional on-campus classes, if offered.

Are You a Good Online Learner?

Here's a quiz adapted from the attributes Smith, Shutt and Maffett say will help make someone well-suited to virtual learning.

• Do you have good time management skills?o Can you set up and follow a schedule?
• Are you self-motivated?o Can you set your own pace while learning?
• Can you work from different locations?o Are you comfortable with the Internet and PC technologies?
• Are you ready to put in extra reading time?

Did you answer "yes" to most of these questions? If so, you may be a good candidate for online education.

Have a great day and God bless!

College Student Study Tips

Studying can be one of the most painful things to go through at college but if you learn some good methods and tips and can become your strong point in school.

Study Frequently and in Short Sessions

Test show that short periods of maximum concentration repeatedly is more benefical than studying for long periods at one time. 10 minutes of complete concentration is all you need and then you can take a break and come back to it again. Why does this work?

Our brains need to recover and reboot as the rest periods is when our brain assimilates our effort. These are very powerful tools that many teachers and college professors do not acknowledge to their students. Studying for hours on top of hours only put your brain in fatigue, stress, and distraction. Your learn will be minimum.

Take Guilt-Free Days of Rest

Resting your brain is very important as school and college can become stressful to even the elite college students that college is easy for them. Being able to take a day off without stress and worry will give your brain the needed time and energy to absorb new data. Really enjoy yourself on your days off and do something active that will exercise your body instead of your brain.

Know Your Emotional State

The best time to study is when you are relaxed and not tired, distracted, and in a hurry. Our brains are like a sponge when relax and easily absorbs information without effort. When you are emotionally stressed than our brain repels information you are studying leaving you with nothing for your hours of studying.

Same Day Review

Learning new things in class are fun but are often lost the next day. Don't let this happen to you and try to look over your notes from class the same day after a break and I promise you will begin to retain more information having studying time when exams or close to be at a minimum.

Set Study Routine

By having a schedule of studying for your classes will give you more time in doing the things you want like hanging out with friends. Getting more stuff during your study times will have your exam scores increasing and your relationships with others doing the same.

Don't waste time and get poor exam scores at college when you can be saving time and getting more done. The tips and methods are very easy and worth giving them a shot.

Have a great day and God bless!

Recieve More Financial Aid

Last year over $152 billion dollars were given away in grants from the government and other organizations for college students. So how to you get you share of the money?

1. Apply Now

Don't put this off until it is too late. Financial aid goes to those who ask for it first so if you wait you might miss your chance to get free money. The very first thing you should do is fill out the Free Application for Federal Student Aid (FAFSA). You might have to check with the college you are attending or are planning to attend for some needed information. The FAFSA is used by many college and private college in deciding the college students financial aid that he gets.

Many people believe they will not receive any financial aid but you should fill out the FAFSA anyway. It has been proven that eight million students missed out on receiving aid from the government and this even includes 1.5 million who have qualified for Pell Grants.

Filling out the FAFSA is the basics step for qualifying for many non-need based loans, such as Stafford Loans that have very low interest rates unlike private loans.

2. Check With Your State

Checking with your state can also be an option as they have tons of money going towards bettering there state. During 2004 to 2005 college students received $7.9 billion in financial aid from their state. These came in forms of grants and scholarships that were based on merit and financial need.

The first step is to fill out the FAFSA and then contact the appropriate state forms. Click here to find your state's programs.

3. Start Your Begging

Writing a paper on your financial situation might not help solve your money problem so let's try something else.Melissa Diana, a financial aid consultant who runs the Web site Tuition Physician, recommends writing a letter to the financial aid office detailing any situation, such as a future hospital stay, which will affect your budget in the following year. You need to tell the financial aid offices that future events will hinder your ability to afford college as they only know information form last year.

Even after you receive your financial aid letter you can appeal your case as more colleges will give money if they know you are accepted and are considering attending. This could be your way to get some more money for college if you are accepted into these programs.

4. Scholarship Search

The majority of financial aid is given out in grants and loans but scholarships can help you as well pay for your college tuition. There is more than $15 billion available for you in scholarships but you will never get it unless you apply for it. Start off at FastWeb.com as I believe they are one of the very best scholarship searchers online.

5. Best Loan Search

Loans make up about half of all financial aid but it is very important to be very careful on what loans to take out and who from as they can come out to be thousands more than the actual loan. Taking the time and searching out the very best loans with your college and yourself is the safest way to go when looking for student college loans.

Have a great day and God bless!

Fast Web #1 Scholarship Finder

FastWeb.com is like your own little college scholarship organizer for scholarships, colleges, jobs and internships with other resources at your figure tips. It has become my favorite website.

FastWeb for College Scholarships

I have been applying for about two months now on all kinds of scholarships and have already made $1,200 for college next year and I am thrilled.

It is so easy as well. After you finish the list of questions, FastWeb sends you hundreds of scholarships that apply to you and you actually have a good chance at winning. You have total access of these scholarships as well with your favorites, warnings on deadlines, and notifications of new scholarships.

Benefits of FastWeb

• Largest source of local, national and college-specific scholarships
• Personalized scholarship matching
• Search and compare colleges that are right for you
• Find colleges with scholarship money for you
• Tools and tips to help you pay for college
• Jobs and internships for students

FastWeb.com is by far the best college scholarship finder ever and I will be using it till I am out of college.

Have a great day and God bless!

College Scholarships Take TIme

When I first started applying for college scholarships, college grants, and some way to paying for my college education everything seemed to be a waste of time.

Spending hours after hours on research, applying for scholarships, and writing essay after essay hoping one will earn some money for my college tuition.

Most people just give up. But not you!

I kept with it and learned how to win and earn scholarships that made all that time worth $300 an hour. It's worth the time.

Scholarship sites like FastWeb, CollegeBoard, etc. can help find you the right scholarships for you to increase your winnings.

I will be posting information on scholarships, grants, loans, and everything a college student needs to know so stick around.

Have a great day and God bless!

Free Federal Grant Money

Are you thinking about getting money for college, tuition, and some for fun college student spending. Start with one of the largest sources of "tree Money for Education & Business Help" the Federal government.

While the governments concern is economic develop, you have the chance to take advantage of their generosity of recieving free money for a business or for college. It is estimated that next year they will give out over $35 billion dollars in grants and low interest loans.

This government giveaway program as college students and business owners recieving around $80,000 dollars each for their future. And it's all free!

Why have you not heard about this yet? Simple!

The governments advertising in this area of grant programs to the public. For most people it just becomes a losing battle and a waste of time.

Even though you hear about budget cuts, grant money still increases very year that is available to you. The amount of money given to college student has actually gone up 30 percent and the amount of money going to small businesses went up 5 percent.

Can average people get grants from these government giveaway programs?

Absolutely!

Most people believe they have to be very rich or very poor to get college grants from a government grant program. It is not true!

To be continued...

Have a great day and God bless!

Government College Grants Beginning!

Are you as a college student who can't get enough financial aid, scholarships, and grants for youe college tuition?

Well, be ready to learn everything you need to get all the grants you need for college, starting a business, and much much more!

I have just ordered the #1 Government Grant Program and you can follow along and learn everything I learn right besides me without spending a penny. It's that awesome.

Ready, lets begin.

Private Foundation Grants

Most people seek out the federal government when in the search for grants to pay for college. Even though federal grants are the majority of financial aid, they are one of the hardest to get with all the competition.

Here is one of the secrets, private agencies offer other opportunities for you to recieve money for college. The hard part is addressing the concerns needed for private funders and improving your chances for getting more money for college.

Soon you will learn the "10 Commandments" for recieving all sources of research grants and not only private foundations.

Be Realistic

Don't try to make up stories and stretching the truth or your project as it might be better not submitting your application at all.

Follow Instructions

Use the format that is requested as applications that don't follow their instructions are usually thrown out.

Another thing that is also mis taken is putting the wrong agency on the applications. Make sure you post to the correct agency and grant company to avoid dumb rejections.

Avoid Overfamiliarity

Do not get caught up in a agency or company coming into your personal life but try to be interested in everything that agency or company is doing. The better connections you have the better chances of someone picking you to get the college grant and financial aid for college.

Sending a financial report could be a major turn on as it shows them your situation while telling them that you are not hidding anything from them. Everything that happens with college, scholarships, financial aid, etc. is nothing as you need to keep going as your college tuition will come to you.

The grants, college scholarships, and financial aid is out there so don't quit and keep searching to find money to pay for college.

Have a great day and God bless!

Top Internet scams exposed!

Here you will learn the truth about online money scams, and pointed to the trust worthy ones that could earn you money college.

Learn to avoid Government Grant Information Scams

You probably are here because you've seen ads on google or yahoo or msn like:

• Get Government Grants Free!
• Get Up To $250,000 From The Government!
• Free Government Grant CD
• Obtain Government Grants Today !
• Free Money From The Government

These ads seem to be everywhere. You will no doubt see several of these ads on forums, popular search engines, and possibly even on Television.

Why are there so many out there and why are they spending thousands of dollars advertising free money for college. Basically, they are selling us the promise of free money becaus eit if something we all need as college students to pay for our college education.

Isn't it possible to get grants from the Government?

Absolutely! There are several trust worthy companies that will send you information on how to apply for government grants. But the fact is that 99% of all people will be denied money from the government because they are scams.

These companies just take your money without helping you at all finding and getting grants for college.

To tell you the trust, most of these web sites offer you nothing more than the following:

• Old out dated web site and phone number information
• No help with filling out applications
• No organization, just a huge list of unsorted grant programs, with addresses
  
• No customer service or help available, sometimes not even an email address!
  
• No refunds. Most of these fly-by-night companies just take your money, and when they get enough complaints they simply close the site and start up a new one. (a common scam site tactic)
  
• Amateur web sites with broken links. (this is a dead give away to a scam site)
• Guarantees to get you a specific amount of grant money (no one can do this!)
• Guarantees to get you grants just by making a phone call (this is just not possible)
  

I have researched and looked further into some college grant programs and have discover only a couple are for real.

My absolute favorite is Uncle Sam's Money as it offers a free consulation with a grant start up specialist! Their grant specialist will tell you what grants you qualify for and help you through the application process step by step. This is a limited time offer though.

These companies have a good reputation and live up to that guarantee. This is excellent because you can try out these members areas for 2 months and if you don't like the results they will refund your money.

The Federal Government gives away billions of dollars every year to college students just like you and me. No matter what you need the money for the Government has a college grant for it. Do you want to start a small business? Did you just have a baby? Need to pay for college? Want to remodel your home? Want to buy a new home? The best part is you can get approved for as many grants as you qualify for and you never have to pay it back. As always I will keep you updated on my findings.

Have a great day and God bless!

Financial aid: How to get what's coming to you

By Sarah Max

1. Introduction

Colleges use both formulas and feelings when awarding aid. Here's how to stack the odds in your favor.

Here's something that may surprise you: Four years at Harvard could actually cost the same as four years at a state school. That's because financial aid often makes up the difference between the sticker price and what you have to pay. If, for example, your "expected family contribution" is only $5,000, you might qualify for $25,000 in annual aid for a school that costs $30,000 each year. But if the school's annual costs are only $8,000 a year, you're likely to qualify for just $3,000 in aid.

When it comes to college financial aid, people have plenty of misconceptions. The cardinal rule for parents: assume nothing. Just because the family next door or your colleague's kid received aid doesn't mean you will -- or won't. Financial aid is based on a combination of factors, and differs from school to school, even child to child.

Despite the climbing costs of a college education, the outlook for parents seeking aid is pretty bright. A record $90 billion in financial aid was available in the 2002-2003 school year, according to the College Board, a non-profit organization that tracks college trends.

After adjusting for inflation, that's an 11.5 percent increase over the prior year. In all, more than 75 percent of private college students and 60 percent of public college students got some type of aid this past school year.

"While there have been tremendous increases in the cost of private education, there is a tremendous amount of aid available as well," says Alan Posich, an independent education consultant.

The trick is figuring out what aid you're eligible for -- then getting it.

2. Who gets aid?

Financial aid is no longer limited to just the hardest-pressed families. "There's a huge misconception that financial aid is only available if you are poor," says the College Board's Jack Joyce. Of course, you are still more likely to qualify for aid if your annual income is less than $70,000, but many schools will offer some aid to talented students whose parents earn more. Colleges and universities are increasingly offering aid to good students to improve the reputation of the school. "Colleges are recognizing that there are some very good students who don't qualify for federal aid, but can't afford to pay the full bill," says Posich.

The federal government dishes out the majority of available aid as grants and loan guarantees. The formulas used to calculate who gets aid are based largely on income. "The financial aid process is driven much more by income than assets," says Joyce. In general, aid is harder to obtain when income exceeds $100,000 and only one child is in school. If there are two or more children in school simultaneously, however, a family with an income of $150,000 may still qualify. Of course, it is impossible to give hard and fast guidelines about whether a particular student will receive aid, but you can do some preliminary calculations on websites such as www.collegeboard.com and www.finaid.com.

3. Cracking the aid formulas

Federal and state aid is awarded based on the information on a student's Free Application for Federal Student Aid. (You can complete the form online or download it from www.fafsa.org). Public colleges adhere closely to the form, and private schools also factor it into their offers. A second form, the College Scholarship Service Profile, is also used by hundreds of schools and many organizations that offer scholarships. Most people don't submit the form until the fall of the student's senior year of high school, long after the FAFSA, because you must indicate the schools to which you're applying. (Find the CSSP on the www.collegeboard.com.)

Both forms need to be completed every year that you apply for aid. Like filing your taxes or applying for a mortgage, the process isn't complicated, but it will be a good deal smoother if you are organized. Make things easier by saving your key financial information including tax forms, pay stubs, brokerage and bank account statements beginning in the student's junior year of high school.

Once a college has your FAFSA, it calculates eligibility by taking the cost of attending a particular college minus the expected family contribution (EFC). The EFC is based largely on income, but is also affected by your assets, the number of children you have attending college at the same time, and the number of years you have until retirement. (Schools try to avoid ransacking your nest egg if you are within ten or fifteen years of retirement.)

The institutional method used by most private schools is slightly more complicated than the federal formula. It makes allowances for such things as emergency savings and money put aside for younger children. Because private schools have their own money to dole out, they are often more willing to look beyond the numbers and take other situations into account, such as a sibling with a chronic illness or a particularly high cost of living. If your family has special financial circumstances that affect your ability to pay for college but are not apparent in the numbers, consider sending a letter to the college's financial aid office after submitting all the necessary forms.

4. Interpreting your award

Expect preliminary aid offers to arrive in your mailbox around the time your child receives an acceptance letter from the school. If you wind up getting aid offers from more than one school, you'll likely see differences. Aid packages vary not only in how much aid is offered, but how it is divided into grants and loans.

The best packages are made up by grants, which are categorized as need-based, merit-based, federal, state, and institutional. Grants are usually tax-free and don't have to be repaid. The largest federal grant programs, the Pell Grant and the federal Supplemental Educational Opportunity Grants, are based strictly on need and are generally non-negotiable. Pell Grants, which usually go to students from low-income families, offer a maximum of $3,300 annually. SEOP grants range from $100 to $4,000 a year. Grants that come directly from a school are often a mix of need-based and merit-based, which can be based on anything from academics to ethnicity to athletics.

The bulk of student aid -- about 60 percent-- comes in the form of subsidized and unsubsidized loans. The best of these will be subsidized loans, which typically carry low interest rates and which don't have to be repaid until several months after the student has graduated. With the federal Perkins Loan, students can borrow up to $4,000 a year for five years at a very low interest rate, usually 5 percent. The government puts a $20,000 annual cap on the loans, but it is up to a particular college to determine the size of a specific student's loan. The Stafford Loan also carries a relatively low interest rate, capped at 8.25 percent. College students may borrow up to maximums that rise the longer a student remains in school, from $2,625 in the first year to $5,500 in the senior year. Interest begins to accrue on these loans six months after a student graduates, at which time repayments begin.

Students who apply for aid are also eligible for unsubsidized Stafford loans. Interest on these loans begins to accrue immediately, although the borrower can defer the interest payment until he begins to repay the principal, typically after graduation.

In most cases, students who accept a federally subsidized loan will be required to participate in the federal Work-Study program, in which students are given on-campus jobs and expected to work between 10 and 15 hours a week.

Parents may also borrow. The Parent Loans for Undergraduate Students (PLUS) allow parents to borrow up to the total cost of four years of college, minus any financial aid received. The loan depends on your credit rating, although requirements are not as stringent as they are for a mortgage. The downside: repayment begins 60 days after you receive the loan, although you can stretch repayment over 10 years. The interest rate is tied to the short-term Treasury bill rate, with a maximum of 9 percent.

Keep in mind that you do not have to accept the entire package. You can decline a particular loan if you decide that you do not need it. However, you may not be able to decline a work-study job and still receive certain other loans.

Be sure to make your decision before the school's financial aid deadline. And don't forget to decline the offers made by other schools so that they can distribute the aid to other students.

5. Upgrade your aid

Not happy with your offer? You might try to appeal to the financial aid office for a better one. If your package contains an obvious error, or if you have reason to believe that an aspect of your finances was not taken into consideration, you may be able to successfully appeal. Also, be sure to let the financial aid office know if your circumstances changed after the application was signed, sealed and delivered.

But you may also win an appeal is if your child receives competing offers from two similar schools. (The College Board site, www.collegeboard.com, has an excellent worksheet for comparing offers.) If your child's first choice school made a relatively poor offer, however, see if anything may be done to improve it. "More and more schools are upfront about their willingness to compare competing offers," says Joyce.

Before you pick up the phone, be sure you are ready to state your case. Understand the terms of the current package and be able to articulate exactly what it will take to make the school affordable to you. Typically, the officer will ask you to send the competing offer or documentation of your new financial circumstances before making a decision.

Of course, the better your child's academic record, the better your chances for beefing up the offer. "Colleges want to match their resources with the students they most want to enroll," says Joyce. "This is no time to be shy." Even if your child is at the top of his class, you will want to emphasize affordability. Take care not to appear as though you are negotiating for the sake of negotiating.

6. Smart saving strategies

It's true that your family's income makes a big difference in qualifying you for most aid. But savings matter as well. Some critics maintain that schools punish those who, regardless of income, have scrimped and saved to pay for college. But schools have become much more sensitive when taking savings into account. It does not pay for parents to forgo saving money for college in the hope of receiving more aid. It is important, however, to find savings tools that will not hamper your ability to get more aid.

Most important, don't shortchange your retirement savings to save for college. The financial aid formula also assumes you can contribute "discretionary net worth," which is no more than 5.6 percent of your total net worth. And if you are older than 45, you will get an asset protection allowance as well, presumably because you need to use your savings for retirement. Your child's assets are a different story. Any money in your child's name is assessed at least a 35 percent rate. That's why it almost never pays to put savings in your child's name if you want to qualify for aid.

And if you are considering opening a 529 savings account, proceed with caution. These savings plans, available in most states, allow earnings to grow tax-free starting in 2002 (many states award a tax deduction for contributions as well).

The tax benefits of 529 plans are unmatched. Right now, however, it is unclear how 529 savings plans will be treated for financial aid purposes. In the past, earnings were categorized as the student’s income and, as such, reduced aid. Now that earnings are not subject to taxes, there is a chance that 529 plans will have no effect on aid.

That’s the best-case scenario. On the flip side, these plans could be treated more harshly than they were in the past. Joe Hurley, founder of Savingforcollege.com expects the Department of Education to offer some guidance on this subject this summer, before parents start applying for 2002/2003 financial aid.

Even if 529 withdrawals do affect aid, you don't have to skip the accounts altogether. Just make sure you only stash enough for the final year or two in the 529 account. Take out the biggest chunk to pay for senior year (when you no longer need to worry about qualifying for financial aid), and then the rest for junior year. In the student's first years of college, you may only want to withdraw a few thousand dollars or so, depending on your income.

Have a great day and God bless!

Savings Gap for College Parents

Parents are failing to save for their children's university courses, says a survey.

And they are underestimating how much a three years degree course is likely to cost.

Money problems also mean that students are taking term-time jobs, with another survey saying that more than half students are now working.

This is affecting their studies, as over 40% say they have missed lectures because of their jobs.

With students returning for the new university year, a survey suggests that many parents are failing to prepare for the financial pressures ahead.

The survey, from the Abbey National bank, found a third of parents are not yet saving for university costs - which the bank says is now going to be about £22,500.

Unprepared

This figure could be bad news for many parents - as the bank's survey says that a third of families are under the impression that they will only have to pay less than £10,000, with another quarter expecting to pay less than £20,000.

Only a tenth of parents are aware that the full cost is likely to be in excess of £20,000.

These figures apply to students now starting university - and the financial outlook is even tougher for those with young children - with forecasts that by 2020 university expenses will have reached £34,000.

In another survey, from NatWest bank, it appears that the number of students with part-time jobs is increasing - with 53% reporting that they are working, up from 48% last year.

This increase in work reflects the deepening levels of debt - up to an average of over £8,000, with more than a quarter of students owing more than £10,000.

Without working, three-quarters of students say they could not be able to financially survive through university, although 43% said that they had missed lectures because of their jobs.

And the survey found that six out of ten students believed that the current tuition fees system is not fair.

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Winning College Scholarships

The college students that win the most college scholarships may not have more positive qualities than you, but they use the following strategy to get noticed by the scholarship committees.

So do you want to know these strategies?

Prepare Yourself!

Things you need to do to prepare yourself for filling out college scholarships:

1. Prepare yourself with teachers recommendations.
2. High school, and college transcripts.
3. Get involved with community, family, and church.
4. Determine why you are unique and goals for your future.
5. Get a picture of yourself.
6. A clear binder or organization.
   

And get ready to spend some time on college scholarships that will help you afford college and keep you from taking out too many college loans.

Get Organized

Begin researching scholarships that match your criteria and once you have the college scholarships for which you want to apply, keep track of the deadlines.

Create a chart to keep on top of all dates to make sure you do not miss any deadlines.

The chart should include:

• Scholarship name and phone number
• Date application must be received by scholarship committee
• Date you requested the application
• Date you received the application
• Date application with above package was mailed
• Date you called the Scholarship Agency to verify they received your application package

Get Noticed

Being organized, prepared, and filling out all the scholarships correctly is important but if you are not recognized than all that work was for nothing.

Even if you feel you master the English language, your essay should be critique by someone who has experience in essay writing.

Asking an english professor, teacher or anyone you know that is a really affective reader and writer would be an excellent choice to read your essay.

Have a great day and God bless!