As they make their way through school, things will be very different for today’s students than they were for their parents. These days, instead of overhead projectors and chalkboards, lessons are being taught on computers. And that’s not all that has changed.

Because of budget constraints, many schools have cut enrichment classes such as art, music and physical education. In fact, many are turning to parents to help pay for field trips, athletic uniforms and basic learning tools such as pencils, paper, markers, chalk and glue.

Think education is expensive now? According to the College Board, a not-for-profit membership association whose mission is to connect students to college success and opportunity, the average cost for tuition and fees at four-year public institutions has increased nearly 51 percent over the last 10 years (after adjusting for inflation), and these costs will almost certainly continue to rise. While the cost of college has skyrocketed, families are not saving enough. The good news is that every little contribution helps and parents should know there are some simple steps they can take now to jumpstart their child’s college savings for the future:

1) Consider a tax-free 529 savings account and start contributing to it regularly. If you deposit just $50 into the account every month, at the end of the year you’ll have built up $600 in principal. Add in gift checks from grandparents and part of any bonuses you may receive at work and you could be putting away a couple thousand dollars a year. Investment earnings could boost that number even higher. The great thing about 529 accounts is they are tax-advantaged and anyone can open one.

2) Encourage your child to take part in saving for college by putting a portion of his or her allowance in a piggy bank. At the end of the year, they can add up their savings and deposit it into a special bank account. When the time comes for college, the money they have saved can go towards the extras they want for school.

3) Become a Upromise member and begin earning college savings rewards with online purchases from hundreds of retailers as well as on purchases at grocery and drug stores, gas stations and even restaurants.

“Since 2001, Upromise has been dedicated to helping families get started saving for college. We now have 8 million members and hundreds of top retail brands partnering with us in this mission to help make college more affordable,” says David Rochon, president, Upromise.

The latest addition to Upromise, the Upromise Schools Program, helps families save more for college and at the same time helps raise much needed funds for schools. So far, more than 9,000 schools across the country are registered with the Upromise Schools Program.

“The Upromise Schools Program is a no brainer. There is not another fundraiser out there that doesn’t cost any money, puts money into parents’ pockets, and makes money for the school. It’s a win — win — win all the way around,” says Angie O’Farrell, parent volunteer, Level Creek Elementary, Suwanee, Georgia.

To sign up for a free membership and start saving today, log on to www.upromise.com.

Courtesy of ARAcontent

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As reported by the U.S. Census, more than 17.6 million students were enrolled in the nation’s colleges and universities last fall. So you’re not alone in making some tough financial decisions.

During the 2005-2006 academic year, The College Board reports that the estimated average annual cost of attendance was $31,916 at a four-year private college, $15,566 at a four-year public college and $11,692 at a two-year college. As the saying goes, paying for college is like buying a car every year — the decision is whether it’s new or used.

Every year, the federal government makes more than $81 billion available to help 10 million families and students finance a postsecondary education at one of the more than 6,200 colleges, universities and trade schools that participate in the programs authorized by the U.S. government.

As noted by these statistics, paying for their education and managing spending are critical to a student’s success in school.

Scholarships and Work Study

To find scholarship opportunities, start your search early — December or January for the next school year — and utilize the resources around you. Begin with your high school guidance counselor for a list of possible resources. Next, check with the college financial aid office. Most state and many colleges offer scholarships. Think small — competition can be tough for large awards. Smaller awards ($1,000 and less) typically have less competition and are easier to obtain. Finally, the Internet and organization Web sites are excellent places to search. Remember, this information should always be free.

For example, at www.usbank.com/studentbanking, you can apply to be one of 30 high school seniors to receive a $1,000 U.S. Bank Internet Scholarship. Over the past 11 years, U.S. Bank has awarded more than $290,000 in scholarship funding for this program. Scholarship award recipients are selected through a random drawing process. You must be planning to attend an accredited two- or four-year college full time next fall. The U.S. Bank Web site also features a powerful scholarship search engine that contains 1.68 million scholarships and awards worth $7.69 billion.

The Federal Work Study program gives students the opportunity to earn money for school and gain valuable work experience. It’s available to both undergraduate and graduate students with financial need. The amount you can earn depends on several factors: need, other aid received and availability of school funds.

Student Loans — Covering the Big Costs

Student loans are some of the most commonly used financial tools. Student loans are funds borrowed from a financial institution or federal or state government. Education loans must be repaid. There are at least three types of education loans.

A Federal Perkins Loan is a federal loan program administered by colleges. It’s available to both undergraduate and graduate students and is based on need and the availability of government funds. The annual interest rate is 5 percent. Repayment begins nine months after the student leaves school or is less than a half-time student.

Federal Stafford (student) Loans and Federal PLUS (parent) Loans are available through financial institutions, such as U.S. Bank, that participate in the FFEL program or through the federal government in the direct loan program. Fixed rates are 6.8 percent for Stafford loans and 8.5 percent for PLUS loans.

Financial institution (or “supplemental”) loans are for students (or their parents) who attend participating colleges and graduate schools. They are not based on need. As you determine the best way to finance your education, remember to consider the full range of student financial aid options available to you. Supplemental loans are often used to supplement federal student loans when they are not sufficient to cover the full cost of education. U.S. Bank offers a number of supplemental loans where students can borrow up to the entire annual cost of attendance, minus other financial aid received, at competitive interest rates.

Information on U.S. Bank student loans can be found on the Web at www.usbank.com/studentloans or by phone at (800) 242-1200. Even if you think you won’t qualify for college financial aid, try anyway. You might be pleasantly surprised.

Courtesy of ARAcontent

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