Paying for college in tough financial times

KUSA - Lots of Colorado parents with kids headed for college are worried about whether traditional sources of college financing will still be available given the state of the economy.

On 9NEWS 5 a.m. we talked to Denver-based independent educational consultant Mark Montgomery for his take.

Montgomery is offering what he calls "10 Tips for Weathering the Financial Storm."

They include:

1. Don't panic. Keep a cool head. Do your homework. Get help, if you need it. While the statistics look bleak, you are not a statistic. Use every resource at your disposal to plan, prepare, and get the best deal for yourself.

2. Develop a "top 25%" strategy that will help increase the likelihood you will get the aid you need. While there is a great deal of variation in financial aid policies, most colleges shower their best financial aid packages on those students in the top 25% of their incoming class. Colleges routinely report the average ACT or SAT test scores by identifying the "middle 50 percent" range of scores of admitted students. So if XYZ College reports a middle 50 percent ACT range of 22 to 26, this means 25 percent of students scored lower than 22, and another 25 percent scored 27 or higher. An applicant to XYZ College with an ACT of 29 has a much better chance of receiving a solid financial aid package than the applicant with a 22.

3. If you plan to take out a loan to partially finance an education, start shopping for that loan now. Do not wait until admissions decisions are made. Learn what loans are available (or not) so that you can make a realistic plan for how much you can borrow. This knowledge will make it easier to compare financial aid packages later when they are finally announced.

4. Don't assume that your in-state colleges and universities offer you the best deal. For example, a recent comparison of costs and tuition for the University of Colorado vs. Montana State University and University of Wyoming show that total costs for the out-of-state colleges are less than CU-Boulder if the student meets the criteria for the Western Undergraduate Exchange (WUE) program. Through WUE, students in western states may enroll in many four-year college programs at a reduced fee level:150 percent of the institution's regular resident tuition. WUE tuition is considerably less than nonresident tuition.

5. Students with less-than-stellar academic records in high school should consider getting their start at community colleges. Most states now have guaranteed transfer agreements between their community colleges and flagship universities. Go to community college, pay less, do well - and you can still graduate from a top-notch university.

Counselors from College Invest were available in our Information Center with additional help. The phones are now closed, but they wanted us to share this information with you.

For more information, you can visit www.greatcollegeadvice.com.

College Invest Tips

General Savings

-This holiday season, if you don't want to brave the cold weather and long lines to track down the hottest new toy for the holiday season, you have another option- make an investment in a child's future through a 529 college savings plan.

-Opening or contributing to a child's 529 savings plan is a unique gift that won't break and kids won't grow out of.

-It is a gift that can last a lifetime, and with a newly launched product-- Ugift, It is an easy gift to give.

-CollegeInvest 529 plans are the only plans that offer a Colorado state tax deduction for your contributions.

-Ugift is a new online resource brought to you by CollegeInvest and Upromise Investments that makes it easy for direct portfolio account owners to invite family and friends to make a gift contribution to their child's college savings account instead of a traditional gift.

-Money saved through college savings plans offered by CollegeInvest can be used nationwide at any eligible public or private college, university or vocational school for a variety of qualified higher education expenses such as tuition, fees, certain room and board, and required supplies.

-Saving small amounts over a long time period can add up.

-You can open a CollegeInvest with as little as $25 and add as little as $15 at a time.

Grandparents

-The CollegeInvest Grandparent's Scholarship is a great way for grandparents to help contribute to their grandchild's higher education.

-To enter grandparents can write an essay answering the question 'what are your hopes and dreams for your grandchild and how would a college education make them possible?'

-A total of ten $2,500 college savings plans will be awarded across Colorado, the deadline is Dec. 31.

Visit www.collegeinvest.org for more information.