David Lerner Associates: Scholarships and College Savings

As the cost of a college education continues to climb, paying for it has become a major family expense. According to the College Board figures for the 2015-2016 academic year, fees for a four year private school are $47,831, public school (in-state) $24,061 and out-of-state $38,544.* Many couples report starting a college fund shortly after their baby is born, which is not a bad idea. The more time you have to save, the better off you’ll be. Use this education planner to help you figure out how to put a college fund in place.

There are other avenues for paying for a college education. If your child shows promise academically or at sports, a scholarship could be the answer. You will have to involve your child in this process and get their commitment to strive for the scholarship.

Academic Scholarships

Full tuition academic scholarships are often awarded by colleges as a way to attract talented students. An academic scholarship is awarded on academic merit and may cover full tuition and fees.

Competition for these scholarships can be quite fierce and while they’re primarily awarded on a student’s GPA, award committees also commonly take into consideration other factors including extracurricular activities and leadership qualities.

How to Find a Scholarship

• Check the websites of the colleges your child might like to attend and see if they offer scholarships.
• Talk to the high school guidance counselor and find out if they have information about scholarships you could apply for.
• Sometimes there are scholarships specifically intended for residents of your city or graduates of your child’s high school.
• Almost every state has a scholarship program for residents, but the awards are usually limited to students who will attend college in that same state.
• The Gates Millennium Scholars
• Intel Science Talent Search
• Coca-Cola Scholars Foundation

If your child has exceptional ability in academics or sports, a scholarship is a real possibility. Even with a scholarship, there are still costs such as books, housing, and other living costs, so starting a college savings fund is always a good idea. After all, when you bring that cute baby home, you have no idea if he or she will excel at football or get straight A’s. So rather be safe than sorry, and have a sound college savings plan set up, even if in the end you don’t have to
use it.

*Cost figures are provided for reference only. These figures include tuition, room and board, books and supplies, and an allowance for transportation and personal expenses.
Source: College Board 2015-2016

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.