Financial Planning.com – October 6, 2004

“Cost of College Puts Strain on Planning”

“’Parents are beginning to feel that sending their children to college is no longer an option they can afford because inflation has outpaced regular consumer price index two to one, and parents’ incomes can no longer keep pace with it,’ said K.C. Dempster…Dempster added that the high cost of education doesn’t show any signs of abating. While it’s easy to understand parents’ frustrations, by not saving they certainly limit their options, she noted.”

“I would not advise dipping into a retirement fund for college, said Dempster. If it’s a choice between retirement and college, I’d save my retirement fund, she added.”

BottomLine Personal – September 15, 2004

Readers ask: “I’m divorced and share custody of my children. Whose financial information should be included on [college financial aid forms]?”

The custodial parent’s information should go on the form. If custody is shared equally, the parent who provides greater financial support to the child entering college should complete the form. It doesn’t matter which parent is taking the child as a tax deduction.

If the custodial parent has remarried, the stepparent also must provide financial information. This is true for the Free Application for Federal Student Aid (FAFSA) and College Scholarship Service (CSS) profile forms. Income is counted equally toward aid eligibility whether it is from the stepparent, custodial parent or noncustodial parent.” - KC Dempster

San Francisco Chronicle - September 2, 2004

“Series EE bonds and college”

“Even if those requirements are met, the interest is tax free only if the bonds are used for tuition and fees – not room and board, books or repayment of a student loan, says Ray Loewe, president of College Money.”

Philadelphia Inquirer – August 15, 2004

“College-tuition panic? Aid still available”

“Home-equity loan money sitting in the bank account for future school years could be viewed as an asset and reduce a student’s aid the next year, said K.C. Dempster, program development director with College Money, a new Jersey firm that advises parents on college financing.”

BottomLine Personal – July 1, 2004

“Your Family – Financial Advice for New Grads:”

Fund your future before paying down debt. Contribute the maximum to your employer’s retirement savings plan as soon as you start working. Pay the minimum on student loans, which usually have low interest rates. Then focus on paying down high-interest debt – such as credit card balances. –Raymond D. Loewe, CLU, ChFC, president of College Money

Wall Street Journal – June 16, 2004

“Giving Adult Children Financial Help Without Undercutting Their Ambitions”

“It builds good financial habits,” says Ray Loewe, a financial planner in Marlton , NJ . “If you do it for the first five or 10 years after the kids get out of school, the habits are set for life.”…”I’ve seen situations where kids have to take on student loans to pay for college,” says Mr. Loewe, “But if the kids graduate with a certain grade-point average, then mom and dad pay off the loans for them.”

Money – May, 2004

“How I paid for college”

“Raymond Loewe of College Money in Marlton , N.J. recommends splitting your funds among a taxable account, a Coverdell and a state 529 savings plan. By the time your kids finish middle school, you should have a fairly accurate estimate of your aid eligibility. If your prospects are good, focus on your taxable account and spend down you Coverdell (or an UGMA or UTMA if you have one) on secondary school expenses such as SAT classes or prep school tuition. (Just be sure to stash away the equivalent amount in a taxable account.) If need-based aid looks unlikely, shift more of your savings into a 529.

Chicago Tribune – February 29, 2004

“The House Rules of College Aid”

This is the season when parents are thinking a lot about how they’ll foot the bills for the 2004-05 school year, notes K.C. Dempster, director of program development at College Money, a consulting firm in Marlton , NJ . That’s because many are filling out financial aid applications, Dempster says…However they [financial aid formulas] don’t consider how much money sits ina family’s checkbook after they’ve paid their monthly bills, including the mortgage. So parents can feel that their expected contribution isn’t realistic. But, they also can appeal for a better aid offer than the one a school initially extends. Dempster notes…To pay what they do owe, parents may choose to borrow. One source is the federally subsidized Parent Loans for Undergraduate Students, or PLUS. Eligibility is not based on need, and the current interest rate is 4.22 percent. The rate changes every July 1, with the top rate capped at 9 percent, Dempster says.”

San Francisco Chronicle – February 22, 2004

“Ins and Outs of Saving for College”

“If you are making under $60,000 to $70,000 a year, you have a high probability of getting financial aid, says Ray Loewe, president of College Money. If you’re in this range, first contribute to your retirement plans – at least enough to maximize your employer’s matching contribution – before worrying about college savings, Loewe says…At the other extreme, families with incomes over $150,000 are not likely to get aid, unless they have multiple kids in college at the same time, Loewe says. Families who are in between should save for college in a way that is least likely to reduce financial aid. Although your financial situation and aid formulas will change over time, assume that ifyou would qualify for aid today, you’ll probably qualify when your child is ready for college, “unless you’re on a fast track where you income is skyrocketing, says Loewe…Loewe says there’s no reason to open a custodial account “unless you’re trying to protect college money from creditors.”