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FOR IMMEDIATE RELEASE

PLANNING YOUR CHILD'S EDUCATION, not childs play!

TURN COLLEGE DREAMS INTO REALITY IN FOUR SENSIBLE STEPS

• Set your Goals

As a parent, you have to begin to prepare for your child's future educational needs.   The goal of every parent is to do more for your children than was ever done for you.  While some debate that this parental desire fails to teach the child the value of a dollar, the needed for budgeting and savings, we should continue to discuss it from your perspective.

• PLAN

Call for an appointment to discuss and analyze your specific situation and your goals.

  Tax Relief Act of 1997

The Washington Political establishment have changed the college saving subject for the better. With reforms in Capital Gains tax cuts, More Flexible IRAs, Educational IRAs, Tax Credits for education, and deductions for Student-Loan Interest you now have more tools in your arsenal than ever before.  Note: The dates of enactment of the tax law changes vary, please call for details.

  STUDENT-LOANS

If you have to borrow some money to pay for college (and many of us do), you can also benefit under the Tax Relief Act of 1997.  The congress has created a new "above-the-line interest deduction on education loans.

Beginning in 1998, taxpayers can deduct up to $1,000 of interest on qualified education loans for college or vocational school expenses, even if they do not itemize deductions.   The maximum increases by $500 each year util the maximum of $2,500 in 2001. 

The deduction applies to the first 60 months in which interest payments are required on qualifying loans for the benefit of the taxpayer, taxpayer's spouse, or taxpayer's dependent.  Deductions phase out when modified AGI (Adjusted Gross Income) on a joint return is between $60,000 and $75,000 ($40,000 and $55,000 on a single return).

FINANCIAL AID WEB SITES

• FAFSA on the Web; www.fafsa.ed.gov - The Interactive Web version of the Free Application for Federal Student Aid (FAFSA)  1 800 4-FED-AID
• FastWeb www.fastweb.com Free, searchable scholarship database that locates sources of financial aid suitable to student.
• Financial Aid Information www.finaid.org Information on everything from scam alerts to scholarships.
• The Student Guide www.ed.gov/prog_info/SFA Financial Aid primer from U.S. Dept. of Education.

Footnotes:

1. Projections assume average 1995 tuition, fees, and room and board of $23,886 for private schools and $7,422 for public schools, based on the sampling of colleges from "America's Best Colleges." Source: U.S. News and World Report (1995).

2. The four-year cost assume 5% annual increases in tuition, fees, and room and board, based on research provided by the National Center for Education Standards.

This material is not intended to replace specific advice for your situation.  You are advised to discuss your situation with a qualified attorney, tax advisor, financial advisor, or insurance agent. The rules are quite complex and we did not intend to over-simplify these complicated rules.  Our intention was to familiarize you the the concepts and vocabulary so that you may have an informed discussion with a qualified professional.