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Showing posts with label College Planning. Show all posts
Showing posts with label College Planning. Show all posts
Friday, August 5, 2011
Schnack Financial Newsletter for August 2011
Sunday, August 8, 2010
 | What You Should Know about Trusteed IRAs The tax code allows IRAs to be created as trust accounts, custodial accounts, and annuity contracts. The same tax rules apply, regardless of how the IRA is structured. But the form can have a significant impact on how your IRA is administered. This article will focus on "trusteed IRAs," also known as individual retirement trusts (or IRTs). |
| More Details |
 | Ways to Trim College Costs How can students and parents avoid the "extreme borrowing" phenomenon that can lead to years of burdensome loan payments? They can start by looking for ways to trim college costs so they won't have to borrow and/or pay as much in the first place. Here are some ideas. |
| More Details |
 | Avoiding Probate: Is It Worth It? When you die, your estate goes through a process that manages, settles, and distributes your property according to the terms of your will. This process is governed by state law and is called probate. Usually, everything goes smoothly during the probate process as long as the executor does what needs to be done in a timely fashion and there are no family squabbles. Nevertheless, some people may want to avoid this process. |
| More Details |
 | What is a rewards program? Offered by merchants of all types, rewards programs are marketing tools that encourage brand loyalty purchasing through price discounts, bonus points and/or coupons toward future purchases, donations to your favorite charity, and even cash rebates. If you're part of the program, you access it by using a membership card that looks like (and often is) a credit card. |
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 | How can I reap the most from a rewards card? As you sow, so may you reap. To reap the most from a credit card rewards program, here are some things to consider. | ||||||||
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Friday, March 5, 2010
March Newsletter
 | The First-Time Homebuyer Tax Credit Recent changes to the first-time homebuyer tax credit mean you might be able to benefit from the credit, even if you're not actually a first-time homebuyer. To take advantage of the credit, however, you have to act by May 1. |
| More Details |
 | 529 College Savings Plans vs. Roth IRAs After the 2008/2009 market collapse, some parents have opted to trade the tax benefits of 529 plans for savings vehicles that don't have a "must-be-used-for-college" restriction. Just how does a favorite of the college savings world, a 529 college savings plan, stack up to a favorite of the retirement savings world, a Roth IRA, as an education-funding vehicle? |
| More Details |
 | 10 Financial Terms Everyone Should Know Understanding financial matters can be difficult because of the jargon used. Becoming familiar with these ten financial terms may help make your financial picture clearer. |
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 | Ask the Experts: How do I unwind my QPRT? Real estate transferred to a qualified personal residence trust (QPRT) may have experienced less than anticipated appreciation or even depreciation. Consequently, one of the purposes of the QPRT--removing future appreciation from an estate--may go unachieved. Some in this position may be inclined to "unwind" (undo) the QPRT. That, however, may not be the best option. |
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| Ask the Experts: My QPRT has terminated. What do I do now? If the grantor outlives the term of a QPRT, the residence passes to the remainder beneficiaries. At this time, several things need to happen. Here's a quick checklist. |
| More Details --see disclaimer below-- |
Monday, November 9, 2009
College Board Releases New College Cost Numbers
College cost trends
Student aid trends
Every October, the College Board releases its Trends in College Pricing report that highlights college cost increases and trends. While costs can vary significantly by region and individual college, the College Board publishes average cost figures, which are based on its survey of 3,500 colleges across the country.
Here are highlights from its latest report:
- At four-year public colleges for in-state students, tuition, fees, and room and board increased by 5.9% from last year, with the total cost for 2009/2010 averaging $19,388
- At four-year public colleges for out-of-state students, tuition, fees, and room and board increased by 6.0% from last year, with the total cost for 2009/2010 averaging $30,196
- At four-year private colleges, tuition, fees, and room and board increased by 4.3% from last year, with the total cost for 2009/2010 averaging $39,028
“Total average cost” includes tuition and fees, room and board, books and supplies, transportation, and a small amount for miscellaneous expenses.
To read the Trends in College Pricing report, visit www.trends-collegeboard.com.
Student aid trends
The College Board is quick to point out that the average "sticker price" cost figure is not necessarily representative of what most students pay. That's because almost two-thirds of undergraduate students receive grants that reduce the actual price of college. The largest provider of grant aid is individual colleges, followed by the federal government, private sources and employers, and state governments.
For the 2009/2010 year, the College Board estimates that students at public colleges will receive an average of $5,400 in grant aid from all sources and federal tax benefits, and students at private colleges will receive an average of $14,400 in grant aid from all sources and federal tax benefits. Federal tax benefits include the American Opportunity tax credit (formerly called the Hope credit), the Lifetime Learning tax credit, and the deduction for qualified higher education expenses.
Every year, the College Board also releases a sister report to Trends in College Pricing, called Trends in Student Aid, that examines student financial aid in more detail. To read this report, visit www.trends-collegeboard.com.
Thursday, August 27, 2009
Michelle Morse was a full-time college student when she was stricken with cancer. Because Michelle faced potentially debilitating treatments, her doctors recommended that she cut back on her college course load. However, doing so would have caused her to lose her health insurance coverage under her family's plan, since she would no longer qualify as a dependent full-time college student. Michelle decided to remain a full-time student while undergoing cancer treatments.
While the disease ultimately took her life, the circumstances requiring her to remain in college in spite of her illness prompted legislative action. Passed in 2008, Michelle's Law provides that full-time college students covered by health insurance as dependents will not lose their dependent status during a medically necessary leave of absence from school due to a serious medical condition. The determination of "medically necessary" is made by the student's treating physician.
Under the law, the coverage must be extended for the earlier of one year from the date of the student's medically necessary leave of absence or the date the coverage otherwise would have ended based on specific policy provisions. The law applies not only to public and private two- and four-year colleges, but also to many occupational education and postsecondary vocational schools.
The law becomes effective for insured and self-insured health plans on the first day of their plan year beginning on or after October 9, 2009. For calendar year plans, this means the effective date is January 1, 2010.
-see disclaimer below-
Wednesday, August 19, 2009
Worth Noting
"Cash for clunkers" receives additional funding
The Car Allowance Rebate System (popularly known as "cash for clunkers") was almost a victim of its own success. The program, which provides $3,500 or $4,500 vouchers that can be used toward the purchase or lease of a fuel-efficient new vehicle when an old "gas guzzler" is traded in, burned through its initial $1 billion funding well short of its projected expiration of November 1, 2009. On Friday, President Obama signed legislation that provides an additional $2 billion in funding for the program, an amount estimated to be enough to sustain current activity levels through the end of August.
The IRS also issued an alert advising dealerships that funds received under the program are includible in their gross income.
For up-to-date information on the Car Allowance Rebate System, see http://www.cars.gov/.
SEC rule on short selling
The SEC has made permanent a rule requiring that short sellers complete a trade within four days. Aggregated information on short positions in individual stocks will become available on self-regulatory organizations' web sites (such as FINRA) within a month of the trade, but short positions taken by individual money managers, such as hedge funds, will not be disclosed. And twice a month, the SEC also will disclose failed short trades, in which stock involved in a short sale is supposedly borrowed but never replaced. Failed short trades have raised questions about a possible connection to abusive so-called "naked" short selling (selling short without actually borrowing the stock) which may have contributed to the demise of Lehman Brothers last year.
A full explanation can be found here.
New Income-Based Repayment (IBR) plan for federal student loans
On July 1, the federal government's new Income-Based Repayment (IBR) plan for federal student loans went into effect. Under this program, a borrower's monthly student loan payments will be based on his or her income and family size. More specifically, annual loan payments will be 15% of the difference between a borrower's gross income and 150% of the federal poverty level (the latter depends on family size and state of residence). Monthly payments are then calculated as one-twelfth of that amount. After 25 years of qualifying payments, the principal loan balance may be forgiven.
The program is open to graduates who have a Stafford, Graduate PLUS, or consolidation student loan made under either the William D. Ford Federal Direct Loan or Federal Family Education Loan programs. The loans could be for undergraduate, graduate, or professional studies, as well as for job training. To enroll in the plan, borrowers should contact their lender.
Details are available on the studentaid.ed.gov website.
--see disclaimer below--
The Car Allowance Rebate System (popularly known as "cash for clunkers") was almost a victim of its own success. The program, which provides $3,500 or $4,500 vouchers that can be used toward the purchase or lease of a fuel-efficient new vehicle when an old "gas guzzler" is traded in, burned through its initial $1 billion funding well short of its projected expiration of November 1, 2009. On Friday, President Obama signed legislation that provides an additional $2 billion in funding for the program, an amount estimated to be enough to sustain current activity levels through the end of August.
The IRS also issued an alert advising dealerships that funds received under the program are includible in their gross income.
For up-to-date information on the Car Allowance Rebate System, see http://www.cars.gov/.
SEC rule on short selling
The SEC has made permanent a rule requiring that short sellers complete a trade within four days. Aggregated information on short positions in individual stocks will become available on self-regulatory organizations' web sites (such as FINRA) within a month of the trade, but short positions taken by individual money managers, such as hedge funds, will not be disclosed. And twice a month, the SEC also will disclose failed short trades, in which stock involved in a short sale is supposedly borrowed but never replaced. Failed short trades have raised questions about a possible connection to abusive so-called "naked" short selling (selling short without actually borrowing the stock) which may have contributed to the demise of Lehman Brothers last year.
A full explanation can be found here.
New Income-Based Repayment (IBR) plan for federal student loans
On July 1, the federal government's new Income-Based Repayment (IBR) plan for federal student loans went into effect. Under this program, a borrower's monthly student loan payments will be based on his or her income and family size. More specifically, annual loan payments will be 15% of the difference between a borrower's gross income and 150% of the federal poverty level (the latter depends on family size and state of residence). Monthly payments are then calculated as one-twelfth of that amount. After 25 years of qualifying payments, the principal loan balance may be forgiven.
The program is open to graduates who have a Stafford, Graduate PLUS, or consolidation student loan made under either the William D. Ford Federal Direct Loan or Federal Family Education Loan programs. The loans could be for undergraduate, graduate, or professional studies, as well as for job training. To enroll in the plan, borrowers should contact their lender.
Details are available on the studentaid.ed.gov website.
--see disclaimer below--
Monday, July 9, 2007
Variable Student Loan Interest Rates Increase
Variable student loan interest rates increased on July 1st
On July 1, 2007, the interest rates on variable federal Stafford and PLUS loans increased slightly. These new rates apply only to loans issued on or after July 1, 1998 and before July 1, 2006.
The interest rate on Stafford loans in repayment will increase to 7.22% from 7.14%. The interest rate on in-school, grace, or deferment status Stafford loans will increase to 6.62% from 6.54%. And the interest rate on PLUS loans will increase to 8.02% from 7.94%. These rates will be in effect through June 30, 2008. The Department of Education sets the rates once each year based on the last three-month Treasury bill auction held in May.
For all Stafford and PLUS loans issued on or after July 1, 2006, the loans will have a fixed interest rate--6.8% for Stafford loans and 8.5% for PLUS loans.
Send us an email, if you would like more information on, click here:
o Comparison of Federal Higher Education Loans
o Federal Student Loans
o Repaying Student Loans
o Student Loan Basics
o How Student Loans Impact Your Credit
-see disclaimer below-
On July 1, 2007, the interest rates on variable federal Stafford and PLUS loans increased slightly. These new rates apply only to loans issued on or after July 1, 1998 and before July 1, 2006.
The interest rate on Stafford loans in repayment will increase to 7.22% from 7.14%. The interest rate on in-school, grace, or deferment status Stafford loans will increase to 6.62% from 6.54%. And the interest rate on PLUS loans will increase to 8.02% from 7.94%. These rates will be in effect through June 30, 2008. The Department of Education sets the rates once each year based on the last three-month Treasury bill auction held in May.
For all Stafford and PLUS loans issued on or after July 1, 2006, the loans will have a fixed interest rate--6.8% for Stafford loans and 8.5% for PLUS loans.
Send us an email, if you would like more information on, click here:
o Comparison of Federal Higher Education Loans
o Federal Student Loans
o Repaying Student Loans
o Student Loan Basics
o How Student Loans Impact Your Credit
-see disclaimer below-
Wednesday, June 6, 2007
June Seminars
For the month of June 2007, we will be hosting two College Financial Aid workshops.
Entitled 123College.com, the workshops provide revealing inside secrets on how to receive the most money possible in funding for College!
You will—
- Learn how to increase your eligibility for financial aid
- Learn how to pick colleges that will best suit your child and will give you the best possible financial aid package
- Learn how you may send your child to an expensive private university for less that a state college
LOCATIONS:
Tuesday, June 26th
Millrose Restaurant & Brewing
Time: 7:00 pm
Wednesday, June 27th
Time: 7:00 pm
Refreshments will be served at both workshops
It is recommended that both parents attend
To make your reservation and for directions,
CALL 1-800-582-4195
(Please RSVP, as seating is limited!)
If you are unable to attend either of our Seminar Workshops, please call
708-386-2790 x 211
To schedule a one-on-one, no cost – no obligation appointment or for future 123College.com event locations.
Please note that programs held at a University, College or School facility are NOT being sponsored by the institution.
--See Disclaimer--
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