Planning
for College
College Planning
- College Is Possible is a
site sponsored by The Coalition of America's Colleges and Universities. Its
goal is to serve as a resource guide to students, parents, and education professionals.
This site is an excellent first stop to guide you to the books, websites,
and other resources that will assist in making college possible. Information
is here for parents of young children just beginning to plan, parents of older
students in elementary, middle, or high school, and for adults thinking about
returning to college.
- Know How To
Go Illinois presents college planning information to students in middle
school through high school. Focusing on low income and first-generation college-bound
students, the information is very thorough.Similar to this site but a little
more detailed is What's
Next Illinois. WNI has a nice career exploration component and allows
students to create an account where they can save their career and college
search information.
- Think College, a U.S. Dept.
of Education site, is another wonderful source of information. Full of tips
for parents and links to other useful websites, it's great for those hoping
to send a student to college in 18 years or in just a few months.
- Use the College Savings Calculators on our
Financial Aid/Scholarships page to forecast expenses and the need for
saving.
- Year-by-Year
Planning -- What should a freshman, a sophomore, a junior, and a senior
in high school be doing to prepare for college? Check the calendars on the
site of the National Association for College Admission Counseling for useful
tips.
- Steps
to College is an online newsletter produced by NACAC. It has articles
focused college selection issues, making the transition from high school to
college, and a wide variety of related topics. These are very good articles
for both students and parents who are involved in the college search, application,
and transition process.
Section 529 College Savings Plans
- What's the difference between a prepaid tuition program and
a savings program?
Prepaid Tuition: Essentially, parents, grandparents,
and other interested parties may lock in today's tuition rates,
and the program will pay out future college tuition at any of the
state's eligible colleges or universities (or an equal payment to
private and out-of-state institutions). Amounts of tuition
(semesters) may be purchased through a one-time lump sum purchase
or installment payments. The program pools the money and makes
long-range investments so that the earnings meet or exceed college
tuition increases in the state.
Savings Plans: Savings plans allow
participants to save money in a special college savings account on
behalf of a designated beneficiary's qualified higher education
expenses. Contributions can vary, depending on the individual
savings goals. Savings plans offer a variable rate of return and
are not backed by the state or guaranteed in any way.
Both types of programs are "qualified state tuition
programs" under the Internal Revenue Code Section 529 (26 U.S.C.
529). This allows earnings to be federally tax deferred until the
beneficiary enters college, and earnings are then taxable at the
beneficiary's typically lower tax rate rather than the
contributor's. Earnings are exempt from state income tax. With the
2001 tax act , the savings offered by 529 plans became more
significant. Beginning in 2002 and lasting through 2010, money
taken out of a 529 plan and used for educational purposes will be
tax-free.
- Saving for
College is a great spot for information on pre-paid tuition
and college savings plans. Founded by a CPA who wanted to know
more about 529 plans, this site is aimed at anyone who wants to
know more about the details of and differences among the available
plans. What to be aware of, loopholes, tax questions, etc. are all
found here. Ratings and explanations of the various states'
programs are here. Before you select a plan, spend some time
reading here. Their "Links" section is also quite helpful.
- Illinois and over 30 other states have Section 529 plans, and
(of course) there is a web site available to link you to any of
those state approved programs. The National Association of State
Treasurers' College
Savings Plans Network is the place to go if you want the
"official" information on the various programs offered by
the different states. Some states' programs are quite flexible,
while others are more restrictive.
- Have you seen the signs at retail stores letting you know that a percentage
of your purchases could go into a fund for sending a child to college? These
credit card rebate and
loyalty programs are similar to frequent flyer miles with the airlines
or any other program that rewards loyalty to a brand or store. A small percentage
of what you spend can be put into a Section 529 plan. There are a number of
these programs, with Upromise being the most popular. Some are free, others
have a yearly fee. A plus to these is that registration is easy and your friends
and family can also register and have their spending help your account! (Editorial:
View these as supplemental ways to fund the 529 plan, it's doubtful that many
children will be going to the University for free based on your spending at
Borders and McDonalds.)
State of Illinois Programs
- College
Illinois!, a Section 529 Prepaid Tuition Program run by
the Illinois Student Assistance Commission, delivers like no other
college funding option. The control you want... the protection you
need... and the peace of mind you deserve. Benefits are good
in-state, out-of-state, at public and private colleges and
universities. They're 100% state tax exempt, and will not affect
student financial aid awarded by any Illinois state agency. The
program is open to all Illinois residents, and to all
non-residents buying for Illinoisans, regardless of income
levels.
- Bright Start
is an Illinois Section 529 College Savings Program that
gives parents, grandparents and friends of a child a better way to
save for college. The program has been designed by the State of
Illinois and State Treasurer Judy Baar Topinka as a qualified
state tuition program under Section 529 of the Internal Revenue
Code. Through Bright Start, you can choose from several investment
options-each designed to help you meet the rising costs of
college. Any earnings on your investment will grow faster because
they are federally tax-deferred. When the child reaches college,
your investment can be used to pay for a wide range of expenses at
eligible schools nationwide. At that time, earnings are taxed at
the student's federal income tax rate-typically about 15%.
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College
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UHS Guidance and Counseling Home Page
Last updated:
Tue, November 10, 2009
Urbana High School
(www.usd116.org/uhs)
1002 South Race Street, Urbana, Illinois 61801
217-384-3505 | fax 217-384-3532