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Research shows that college graduates experience greater earnings, less unemployment, and more self-confidence throughout their lives than do high school graduates. On average, people with a college degree earn 81% more than those with only a high school diploma. Over a lifetime, the gap in earnings potential between a high school graduate and a college graduate can exceed more than $1,000,000.¹
In recent years, it's becoming easier for families to save for college. From new state savings programs to federal tax incentives and education savings accounts, there are more choices to set aside money for college. College expenses vary based on the type of school and expenses being covered. Common costs range from $8,000 (Public) to $21,000 (Private) for Tuition, Fees, Room & Board. Inflation costs have averaged 4-5% for both Public and Private Universities.²
To determine your child's college needs, the following factors should be considered: |
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The current age of the child--How much planning time is available? |
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Type of education desired--Will children go to public or private schools? |
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The current costs of these expenses. |
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Types of savings vehicles--consider the tax benefits of the various ways to save. |
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The effects of inflation--How high will future costs be? |
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Besides personal savings, financial aid may be available from several sources: |
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Grants (Pell Grant, Federal Supplemental Educational Opportunity Grant, or state grants) |
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Scholarships (Local, state, employer, college, Merit, Contest or other scholarships) |
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Student loans (Stafford loans, Perkins Loans or Parent Loans to Undergraduate Students) |
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Work/study arrangements |
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Tax changes offer education savings incentives. The Tax Relief Act of 2001 enhanced features of the Education Savings Account and IRC Section 529 plans. The Hope Tax and Lifetime Learning Credits also remain as favorable options to pay for college.
A focus on planning for college can help maximize resources. |
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Determine the age at which the child will enter college. |
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Project future expenses based on the target costs in today's dollars. |
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Compare future costs with funding sources and take steps to save regularly, if needed. |
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¹College Board Trends in College Pricing 2000, Trends in Student Aid 2000, and Straight Talk about College Costs and Prices, Report of the National Commission on the Cost of Higher Education, January 1995
²College Board Annual Survey of Colleges Data Base |
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Learn more from the JCB Investor Services representative today. |
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Securities and insurance products are offered through INVEST Financial Corporation (INVEST), member, FINRA, SIPC and affiliated insurance agencies. JCB has entered into a third party arrangement allowing INVEST to offer securities to bank customers. JCB is not affiliated with INVEST or JCB Investor Services. Products are:
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| NOT FDIC INSURED |
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May lose value |
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No Bank Guarantee |
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