One of the Most Difficult Parts of College - Estimating Cost

It's difficult for parents to sit down with a calculator and come up with an accurate budget for a child's college education.  If you don't think so, prepare a budget for your life for the next four years and see how accurate it is afterwards.

Most colleges will give you a good indication of what current costs will translate into a reasonable estimate for a semester, and you can adjust that for cost of living increases for four complete years.

That is a quick answer, but as you probably already know, higher education generally costs more than we expect because of all the flexible expenditures that are involved when a young adult stays away from home.  If you are an accountant, you may have a much better handle on what to expect, but for most of us, it is at best an educated guess.

Estimating 101

Take what you know as far as course of study, room and board, food, clothing, books, and tuition.  Then add any relevant fees such as clubs, fraternities or sororities, and transportation.  Add another 10% for all the contingencies you can't foresee after you have included everything that can be a reasonable expense.

If your student is still in high school, add about 7% to the estimated semester cost for every year it will be before he or she starts to college.  This is a good rule of thumb amount for the increase in cost of living.

Basing your estimate on a semester at a time, begin with your adjusted semester cost for only the first one, and add 5% to the total semester cost for the next one, and on to the next, building up so each one is more than the previous.  Do this for the duration of the four years.

Fine Tuning the Overall Expense

Don't let the total cost frighten you out of your wits.  This should be a fair estimate of the worst case scenario if you didn't attempt to find savings up front.  When you seek financial aid or scholarships, you can trim the numbers down considerably on out of pocket costs.

When looking for cost savings for college, begin with scholarships and grants first.  If you are to pursue this route, you must start your quest relatively early and at least by the beginning of the senior year of high school.  If your child is not ready to commit to a course of study, there will be some avenues you may not be able to pursue, but most grants and scholarships are based on academic achievements more so than the major area of study.

Your child should be impressed with the importance of staying focused to get the best grades possible and improve the opportunities of college funding at the high school level.

College Credit Transfer Articulation - Save Money, Time, and Credits

Students may take college courses at one school and then decide to transfer to another institution. This is a common practice and there's certainly nothing wrong with changing colleges.

What many transfer students do not realize until late in the game is that not every course credit is eligible to transfer to another institution, or more specifically toward a particular degree.

For example, let's assume a student is going to take a couple of courses during the final semester of their senior high school year and a few more courses during the summer. This student's plan is to enter a different school in the fall as an incoming freshman.

Let's also assume this particular student's major is currently aimed toward obtaining a specific degree, such as nursing.

In order for these credits to transfer toward the nursing program at the final destination school, it is imperative that they meet the transfer articulation requirements. Laws vary among states, but the concept is basically the same.

The course titles and numbers offered at a local community college are going to vary from the titles and numbers offered at another school. The transfer articulation information helps a student decide which courses for a specific major will transfer, for example, from the community college to the state university.

After all, what's the point of working hard to obtain college credit hours if they won't apply toward your degree at your designation completion institution? Non-eligible credits are a loss of credit hours, money, and time.

Suppose one of the courses our example student enrolls in at the community college is PSY 200 "General Psychology." The institution where the student plans to pursue their nursing major labels the course PSY 201 "Principles of Psychology." The articulation guide shows the PSY 200 course to be eligible for transfer because both courses are one and the same, although numbered and titled differently.

Transfer articulation guides for many states can be obtained online. You simply provide a bit of information, such as both schools you plan to attend and the desired major. You can then print a list of the course requirements and their corresponding course titles and numbers that will successfully transfer.

This will prevent you from taking random courses that you might find out later do not transfer to your destination school, much less apply toward your sought after degree.

If you cannot find an articulation guide online for your particular state, contact both of the institutions involved and talk with the admissions offices directly regarding the articulation requirements that pertain specifically to your situation.

Tax Credits for College Students

There are many ways to tap into assistance when trying to fund your child's college education. Students can apply for scholarships, student loans, work study programs, and financial aid assistance.

Something to check into if you are seeking funds to help pay for your child's college education are tax credits that apply under certain circumstances.

American Opportunity Credit - A Partially Refundable Tax Credit

* Information for each specific tax year should be obtained from the IRS website. It is not certain how long this credit will be in effect. Currently, it is specific to 2009 and 2010 and may be extended on a year by year basis.

* Taxpayers (families or students) with no tax liability are eligible for the credit.

* Currently, this credit is not available to foreign students in the U.S. on an F-1 visa.

* The student or family can claim the credit for the first four years of post secondary education per eligible student.

* The AO Credit increases the Hope Scholarship Credit to 100% of tuition, fees, and class materials up to $2,000 during the taxable year. An additional 25% of the next $2,000 in expenses may also qualify, with a credit cap of $2,500 max.

* Taxpayers with an adjusted gross income on their return of $80,000 ($160,000 joint) or less are eligible. The credit is reduced for those whose AGI exceeds these amounts. Taxpayers with AGI of more than $90,000 ($180,000 joint) are ineligible.

* Unlike the Lifetime Learning Tax Credit discussed below, the AO Credit is based on the number of qualifying students in the family; the credit is not limited per household or tax return.

Lifetime Learning Tax Credit - Per Household College Assistance

For those with a tax liability, there is the lifetime learning tax credit.

* A family is eligible to claim up to 20% of $10,000 to cover eligible costs for qualified students.

* Eligible students can include the taxpayer, their spouse, and eligible dependents.

* There is no limit on the number of years the Lifetime Learning Tax Credit is available to eligible candidates.

* The credit amount is $2,000 and is per family or tax return, not per student.

* The income limitations for the Lifetime Credit are different than those for the American Opportunity Credit and geared more toward low to moderate income households.

More information and eligibility requirements are available on both of these tax credits by visiting the Internal Revenue Service website.

Preparing for College Expenses - How Much Will A Degree Cost?

Parents with college bound high school children have already given some thought to how much a college education will cost. It's hard to estimate exactly, but some ballpark numbers can be obtained from the colleges being considered.

What Costs Are Involved for College?

* Tuition - semester classes are typically 2-4 credit hours, and fees are usually charged per credit hour. The least expensive credit hour fees are generally at local community colleges. Most all colleges and universities charge more per credit hour to out of state students than in-state residents. Some courses also have associated lab fees.

* Course Materials - this includes textbooks and supplies and the cost varies per course. Most students also have laptop computers to use for completion of their course assignments.

* Housing and Meals - cost again will vary based on whether a student lives on campus or off. Typically, freshman students are required to live on campus throughout their first year unless they reside in town with parents or relatives. Meal plans are offered through campus dining halls. Eating out every day can be expensive, so most students opt for a dining plan or have an apartment with cooking facilities.

* College Sports - if your student plans to participate in sports or cheerleading, there are most likely fees associated for uniforms, travel, equipment, mandatory clinics, and so forth.

In addition to direct school expenses, there is still the need for clothing, transportation, incidentals, and spending money. If your student plans to participate in campus extra-curricular activities such as clubs or Greek life, there will be additional expenses for membership dues.

Don't panic when you get a bottom line cost per semester or year of college. Many universities and colleges allow parents to make payments rather than coming up with one large lump sum of money.

Remember, too, there is the possibility of financial aid, student loans, work study programs, and scholarships for eligible candidates. For information on financial planning for college, help can be obtained by contacting the financial aid or bursar's office where your student is planning to attend school. It is highly advised not to wait until the last minute to start making arrangements for payment of college expenses.

Advanced Placements Classes - High School Opportunities for College Credit

Many high schools already offer advance placement classes for students planning to attend college, and those that don't are coming on board on an ongoing basis. These classes are a tremendous opportunity for students to obtain college course credit while still in high school.

How Do Advanced Placement Classes Work

Details will vary per high school, but basically the high school courses are designed to prepare students for an American College Board Exam on a specific subject. If a student passes the exam, they are eligible to receive equivalent college credit as if the course was actually taken in college.

Excellent attendance is usually required for the prep classes along with successful completion of all course work.

Fees Associated With Advanced Placement Courses

Typically, a fee is charged for the national examination. The test is normally administered by the high school AP (advanced placement) class instructor and the exam is administered at the end of the course.

Fees typically run around $75-$100 per exam. This is nominal when compared to the cost of taking the equivalent course in college when you consider the fee per credit hour along with book expenses, not to mention the time saved by completing college level courses while still in high school.

It is important to understand that not every student will pass these exams. The best advice is to attend all AP class sessions, study the material diligently, and complete all course work and required reading. The purpose of the class is to prepare students for the exam, so attending and paying attention are key factors for success on the advanced placement examinations.

Acceptance of Advanced Placement Course Credits

Since these are considered nationally accepted examinations, most schools will accept these scores for review and award of credit. It is advised to check with each institution individually to make sure the credits will be eligible for award.

Early College Admissions Opportunities - Possibly A Good Fit for Your Student?

There was a time in the recent past when early admissions to college was not something many people were familiar with or even knew existed. Early admissions is more commonplace now and an option to give some students an accelerated boost toward a college degree.

What is Early Admissions to College?

In summary, this is a way for students to enter college early rather than waiting until the traditional time of the fall following high school graduation. Program guidelines vary per individual college or university, but many schools support this program.

Who Qualifies for Early Admissions?

The program is designed for high school students with exceptional ability. Admissions requirements will vary per school, but primarily you can expect participating colleges to require a high GPA, successful completion of the majority of high school credits, and an above average ACT/SAT score.

If a student has completed most high school credits but lacks one or two that might prevent them from bypassing their senior year, there is always the option of summer school to fulfill any straggling credit requirements so the student can begin college as a freshman in the fall of what would have been their senior year.

Is Early Admissions a Good Fit for Your Student?

Many students spend their early high school years relishing the thought of their senior year. It is the end of one life's phase about to launch into another, and there are privileges associated with senior status.

Many high school students want to be there for the last homecoming game, the senior prom, experiencing the wonderful memories with their friends, and they have no interest in spending their high school senior year as a college freshman.

Some others aren't that concerned with missing their senior year and prefer to get the head start in college to land them in the professional world sooner. It's simply a matter of preference of the individual student.

Choosing a College Major - Which Secondary School is Best for Your Son or Daughter

Many things have to be considered when it comes time to choose where your child will pursue their secondary education. While many factors are involved, one specific question must be answered first and foremost. What will be your child's intended field of study?

Choosing a Course of Study

It is not uncommon for high school seniors to be unsure what they want to study in college. Many students even change their majors after having completed some college coursework.

Parents, of course, who are typically footing the college expenses want to avoid major changeovers if possible. Why pay for courses toward a major only to have your student change their mind in mid-stream?

Selective Colleges for Specific Majors

One reason to give this decision a great deal of forethought is that every college does not offer every field of study. Another important factor is that some schools come highly recommended for specific majors. Some colleges tout business programs, others excel in medicine, and still others come highly recommended in the field of law.

If your college bound senior wants to study veterinary or forensic science, you'll discover that not every college offers these programs in their curriculum.

Better Safe than Sorry

Don't sweat it if your child is unsure. No two people are the same, and some students are quite sure what they want to pursue in college early on, while others may want to get their feet wet first and explore the available opportunities once in attendance. Either way is common and acceptable.

Here are some options to consider that might save money and aggravation until your student knows what they want to study.

1. Most freshman students start out taking basic college courses that apply to many majors. A college advisor can recommend the courses to take initially that apply toward the widest range of majors, such as English, Psychology, History, Math, Science, or Arts Electives. This will prevent valuable college funds from being spent on major specific courses that can be taken later.

2. Consider having your student take some courses at a local community college, possibly while still in high school or in the summer following graduation. This puts students in touch with their peers who are also making college decisions and with advisors and professors who can help guide them toward a specific program of interest.