Changes Made To The “College Kid” Tax Rules

One of the changes that people are starting to realize that is becoming a real pain is the 529 College saving plans. It seems everywhere we turn new changes are being made to the so-called college kid plans.

For now though the tax free exempt is there, but that could change at anytime. People sometimes don't realize that every Congress and state legislatures look at ways to get extra money and taxing the 529 college funds is something that they consider every year.

Starting though in 2008 college kiddie tax as it is called is being expanded again to 18 and to full time students age 19 to 23. Right now though for kids under 18, there is no tax. This means invest as much as you can before they turn 18 so the tax won't hit you.

The one loophole is the tax can be avoided if the child receives more than one-half of his own support from wages that he has earned during the year. The 529 college savings plans a hot topic right now as more people are trying to avoid the college kid tax. The easiest option that they have is to use these 529 savings programs.

What is happening is more and more options are being taken away from the working American and their children. This doesn't look like it will end anytime soon either. People are learning that the tax is something that they will have to pay unless they come up with some other kind of option.

The 529 college savings plans looks like the best option to avoid the tax and many people are rushing to get into these programs. The biggest problem with that is they could be getting into programs that won't be best for them or their kids.

The college kid tax has really affected the way you do things and that will continue to change in the next few years. Getting the best bang for your buck is something that more parents and grandparents will look into more carefully as they don't like paying extra taxes if they don't have to.

Money is tight these days and getting the most for your investment dollar is very important. Finding the right 529 college saving plan is something that will take some time and research if you want to save yourself a few dollars.

The future of these 529 college savings plan is also a very hot topic these days. Plans are changing all the time and costing consumers more as states look to turn profits on these products.

Millions upon millions of dollars are being tossed into these programs and the chance for something to go wrong with these programs mount, as more money is invested. Fraud is something you have to watch even with state run programs. For the most part though all the programs are ran extremely well, but you will always have bad apples sometimes.

Proper research and knowing what you want out of your investment will save you money in the long run and your kids education will prosper because of the extra detail you paid to it. The college kid tax has made more Americans leery of the government and they are trying to keep as much of their money as possible.

Their only real source left is these 529 college saving plans which will continue to grow in the future. Education is something parents don't mind paying for, especially if they can save themselves dollars off their tax bill in the process and their kids also profit from it.

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Required Steps to Set up a Coverdell ESA for College

The required steps to set up a Coverdell ESA for college are relatively easy now that you’ve done the hard part and determined that this is the right plan for you. So where should you put the money? Any financial institution such as a bank, investment company or stockbroker that handles tradition IRA’s will be happy to help you establish a Coverdell account.

You can put your monies into any qualified investment vehicle such as bonds, mutual funds, stocks and certificates of deposit that are offered at the financial institution. It’s a good idea to ask about their minimum balances and what fees (if any) will apply to your investment.

If you want to be diverse, you can even split the money up between several investments. You won’t find limits on the amount of Coverdell accounts that you can establish for your child. You will find that you are limited to the amount of money you can contribute. It doesn’t matter how many accounts your child has, you can only put away $2000 per year. A word of caution, be sure that the management fees for multiple accounts don’t eat up into your overall savings return.

Your financial institution will need some basic information from you to set up the Coverdell ESA account. You will need your own name and social security number. You will provide the designate beneficiaries name, address, birth date and social security number. Also needed are the name, address and social security number of the individual who will be responsible for the account.

This will be the person who will initially be in control of the ESA. If you are the parent or guardian of the beneficiary, you can name yourself as the responsible individual. Else wise, you will have to name the parent or guardian.

Next, you will inform the provider of the amount of your initial contribution (up to $2000). Sometimes you will need to choose the investment at the time of account set-up. If you open an account with someone like a stockbroker, you can establish a new account and the person responsible will be able to invest it at a later time.

Finally, you will have some choices on the Coverdell account agreement. The provider of the account will probably use the standard form from the IRS. On this form, you will have to choose what happens when the beneficiary turns 18. If you do not indicate on the agreement, control of the account will pass to the beneficiary at that age. It may be a good idea to keep control after the beneficiary turns this age.

This way you can insure that the eighteen year old doesn’t make unqualified purchases from this account. If you want to keep this control, there is a box you must check on the IRS form.

The last choice you will need to make regards changing the account beneficiary. When the account is set up, you decide if you want the person who controls the account to be able to change the beneficiary. If you are the responsible individual, it is advisable to keep this flexibility in case circumstances change. You might want to be able to change the beneficiary in the case of an unexpected death. This would be a protection of the account as a Coverdell ESA instead of it being terminated.

The required steps to set up a Coverdell ESA for college are very easy. Check out your options at any bank or brokerage firm. Today is a great day to start investing in your favorite child’s future.

Getting Past Contribution Limits for 529 College Savings Plans

There are a few major investments that almost every family faces – cars, homes, and of course, college educations for the children. The importance of having a college degree seems to grow every day, but unfortunately, the cost of attending college seems to grow right along with it.

In fact, the cost of attending college is downright prohibitive for some families, and there is no reason to think that this situation will improve any time soon, and every reason to think it will actually get worse. What can you do if money is tight, but you want your child to have access to an education that will help them succeed in the job market?

Scholarships and grants help some families, but they seldom foot the entire bill, and student loans can be an expensive burden to saddle onto your child on graduation day. Another problem with all of these college funding options as well is that it is impossible for you to know if you are getting them until your child is actually ready to enter college.

You can’t wait that long to plan for education financing if you want your child to be able to attend the college of their choice. So, what is a hard working family to do to ensure that they will have the money to put their kids through school? A 529 savings plan can be a great option.

A 529 savings plan is a state run savings account that lets you save money for your child’s education and gives you a tax break for doing so. Anyone can contribute to your 529 savings plan, so if grandparents and the extended family want to help save, they can do so.

Some 529 savings plans function just like normal saving accounts, while others pre-paid accounts for schools that let you pay the tuition of a college in advance.

The idea is that the price you pay today will be significantly cheaper than the price you would pay by the time your child is old enough to attend that school (of course, then you have to hope they want to go there!). These savings accounts allow you to grow your money faster by investing it in the stock and bond market as well.

There is a drawback to these 529 college savings plans, however, and that is the contribution limit. Each state comes up with its own contribution limit, but they generally range from $100,000 to $200,000 per family. That may sound like a lot of money, but is it really?

Would it be enough if your child wanted to attend an Ivy League or private university? Would it be enough to give several children room, board, books, and tuition at even a public state school? If you are facing either of these scenarios, you need to find a way around the contribution limit on these accounts. There are a few things you can do.

You can have relatives set up separate accounts instead of contributing to your account, and you can have accounts in multiple states. You can put your money into different types of accounts – one pre-paid and one savings – for your children. You can also have each parent start an account, if they are unmarried.

The most important thing to remember about starting all of these accounts and getting around the contribution limit is that you will need to understand the tax implications for each account. If you have accounts in different states, each state’s own tax laws will apply to each account.

Each account holder will be responsible for reporting contributions to their own account. All of this extra work may be worth it in the long run, though, so your child does not have to worry about finances will working on their degree.

The Ins and Outs of Controlling a Coverdell ESA

Be sure of exactly who controls a Coverdell ESA; know all of the ins and outs. No one wants to deal with the headache of an 18 year old discovering their education fund only to run rampant making unqualified purchases. Of course, this would not be the behavior of every college student, but it will happen to someone out there somewhere. Here are some control ins and outs for your consideration.

With a 529 plan, you can keep in complete control of the account as the account owner and can even have the value of the account refunded for your use. This is a little different with a Coverdell ESA. The responsible person (parent or guardian) must administer the account for the benefit of the child.

Any money that you take out of the ESA must be for the benefit of the child. It should not be refunded to the person who established the account. Coverdell accounts are essentially an irrevocable gift.

Since the beneficiary of the Coverdell is not of age when you start contributing to the account, when the account is started an adult is named the responsible individual. This individual is typically the parent or guardian of the child. There will be policies at the financial institution you select to handle your ESA that determine the supervisory authority for the account.

The responsible individual may be able to retain that authority for the life of the account. If they wish this individual may be permitted to transfer the authority to the child at age 18.

With a Coverdell ESA, the responsible individual has more control to prevent the child from using funds for non-qualified purposes than UTMA or UGMA accounts. (Uniform Transfers to Minors Act and Uniform Gifts to Minors Act) If the account is not completely empty by the time the beneficiary reaches age 30, the balance will be paid to the beneficiary in 30 days.

In case of the death of the beneficiary, the account will be paid to their estate. This is unless there is an authorization from a legal representative to change the beneficiary to a surviving family member or spouse who is under the age of 30.

As the responsible party you have the control to change the beneficiary to another family member at any time as long as there was an agreement when the account was started. Then, you can change the beneficiary to another family member under 30 without having income tax and penalty. This includes anyone in your immediate family, including stepchildren or stepsiblings and cousins.

If you are the grandparent who has established this account you will not be able to change the beneficiary or have the account refunded for your use. Your choices are to name the parent, guardian or child as the responsible individual, you will more than likely not be able to name yourself.

You should look to restrict the powers of the responsible individual if you do not want the parent or guardian to be able to change the beneficiary. It is understandable if you want the account to stay in the name of your named beneficiary no matter what the circumstance. In this instance, you do not have the same control of the ESA that a 529 plan would grant you. This may affect your decision on which account you select.

If you have more questions on your Coverdell ESA, talk with the providers of the account. This is a great way for parents, grandparents and children to work together to pay for future education expenses. The ins and outs of controlling a Coverdell ESA are important. It’s good to know exactly who’s in control of your money.

What Contributing Grandparents need to know about 529’s

What exactly should grandparents need to know about 529 college plans? Some things just seem to go together like hot dogs and baseball, peanut butter and jelly, and of course, grandparents and 529 plans.

It’s a very lucky family that can depend upon grandma and grandpa to help with college tuition bills. College expenses aren’t exactly shrinking. The best gift that anyone could give could be your grandchild’s education fund and a 529 plan is a great way to get started.

A 529 plan is a state sponsored savings plan that invests money on behalf of beneficiaries. The earnings are tax deferred from federal income tax and most states have programs that will defer state taxes. If your grandchild uses the money from this fund for any qualified education purpose, the withdrawals will be free of tax.

Grandparents are allowed to contribute up to $11,000 per year per grandchild. So if Grandpa and Grandma have two grandchildren could place up to $44,000 in funds for the grandchildren without any gift tax liability. The grandparents would each have to set up 2 funds for each grandchild (a total of 4).

Grandparents will still have control over these funds and can retrieve the money if needed. Of course, there will be taxes and penalties on an unqualified withdrawal but the taxes and penalties will only be on your earnings, not on the amount of the original contribution.

The 529 plans have lots of investment options, which create a big decision for the grandparents to make. Grandparents typically are more conservative than the child’s parents. The most popular approach to 529 investments tends to be the age-based option. This is a simple way to save for college. You do not have to personally adjust your allocations over time.

The fund is managed according to the age of your grandchild. Younger children have more of a stock concentration. As your child gets older, the assets are automatically shifted into a higher ratio of short-term investments and more stable bonds.

Grandparents could also check and see if the 529 plan that your have set up will accept a third party contributions. This will take all of the worry about opening and maintaining your own accounts. State tax deductibility may be an issue if you go this route. Some states allow you a deduction for at least part of your contribution to their 529 plans. As a third party donor you will not be eligible for this deduction.

If you ever need to apply for Medicaid benefits, the state will look at your 529 plans as countable assets. You are eligible to take back the money you’ve invested so the money is technically available to pay medical or nursing home expenses. If you have this concern, it is an issue to discuss with your tax professional or attorney. It might be a good idea to make someone else the owner of the fund.

A big concern for grandparents is what would happen to the money in the 529 accounts if your grandchild chooses not to attend college. A great option is to change the beneficiary to another family member or even yourself. You can change the beneficiary as much as you want.

Another option is to take the money in the fund for your needs. The earnings in the account will be subject to a 10% penalty rate and will be taxable as income.  This is some of what contributing grandparents need to know about 529’s. It is a great way to invest in your grandchild’s future. You have picked an incredible gift to give to your very lucky grandchild.

Wading Through the Financial Aid Options for College Students

The world of financial aid is often one of the most dreaded parts of getting ready to go off to college. Unless you have been offered a full tuition scholarship well ahead of graduation, chances are you will have to do the work of getting financial aid to fund your college years.

Financial aid can definitely be one of the more confusing aspects of going to college. Here are some tips to help you wade through the financial aid options for college students.

Your First Stop – Fill out the FAFSA Form

What is the FAFAS form? As most college students know, the FAFSA should be your first stop on the road to securing financing for your college years. The FAFSA form is the Free Application for Federal Student Aid. It is a federal form that you should fill out roughly a year before you plan to attend college or university.

The FAFSA form will ask you for personal information and information about your family’s income. By filling out the FAFSA in a timely manner, you automatically become eligible for federal student aid, which may include Pell Grants (aka, free money), subsidized student loans, unsubsidized student loans, and financial aid in the form of work-study funds. Pick up the FAFSA form at your local library or college financial aid office. You can even fill out the FAFSA form online.

Seeking Out Private Funding Sources

Another very popular option is to seek out financial aid in the form of private funding sources. Private funding may mean seeking out scholarship assistance from private companies, which can range from the local supermarket chain to a major bank corporation.

Most of these private funding sources require that apply with them directly for a scholarship contest of some kind, which may include an essay competition or simply an application with reference letters. Make sure to follow directions carefully, as each company has different rules and regulations.

Work Your Way to a College Degree – Taking Advantage of Employer Tuition Assistance

Many employers offer tuition assistance as part of your benefits package. Every employer is different, so ask your human resources representative if you think that they may be able to help you with tuition. If you are unemployed and looking for a job, consider seeking out employers who offer tuition assistance as part of their benefits package.

Seek Out Specialty Scholarships

Before you go the route of private lending, make sure to put your best effort forth when it comes to finding suitable scholarship opportunities. Just because you didn’t make straight A’s in high school does not mean that you are not scholarship material.

There are many specialty scholarships out there that target specific majors and industry. Consult the thickest scholarship finding guide you can find for opportunities that suit your situation.

Your Last Stop – The Private Loan Industry

Finding money for your college years is always difficult if you or your parents do not happen to be independently wealthy. However, there are many options available for those who can’t get their hands on a full tuition scholarship, federal, private, or otherwise.

There is a growing private loan industry that is now making many loans available for families and college students. However, if like many college students, you find yourself having to take out a large loan to pay for your studies, you will need to do some serious interest rate shopping.

Always opt for a federal subsidized student loan if possible, as these usually lock in a low interest rate and offer the best rates. However, if this is not possible, shop around with different lenders to find the one with the lowest interest rate and with the most flexibility. Make sure to read all the fine print.

Funding Options for College Bound Students

With so many funding options for college bound students, which one is best for you? Paying for college may be the largest expense a family can have, especially for families with multiple children. There are so many funding options to assist you. Here are some brief descriptions of your options.

A Coverdell educational savings account is a popular plan for college funding. You can contribute up to $2000 per year per child. If you use these funds for qualified education expenses, the earnings are tax deferred and free of federal tax. You select the investments for optimal flexibility.

Section 529 plans are state-sponsored plans that can be used to pay college expenses. This is a tax-advantage plan for approved education-related expenses such as tuition, room and board, supplies and fees. The state generally hires an investment firm as a program manager who provides various investment choices.

You invest in the appropriate portfolios that match your investment time-line and risk tolerance. The two types of 529 plans are prepaid and savings. Prepaid plans (independent) let you purchase tuition credits at member colleges, at today’s rates, for future usage. Savings plans have growth based on the market performance of your investments.

UGMA/UTMA accounts are custodial accounts opened on behalf of a minor. This gift is considered irrevocable with all withdrawals required to be for the minors benefit. The balance of the account is turned over to the minor at the age of majority.

Grants and scholarships are “free money” options that don’t have to be paid back. This is a debt-free way to fund an education. Financial need typically must be demonstrated to receive a grant. Scholarships are usually based on merit.

Work-study programs provide part-time employment from the federal government to earn money for college. This program is not only in place to help to fund college, but a work-study job can provide essential work experience.

Federal student loans are low interest, long-term loans for students. These loans offer attractive repayment options including being able to post-pone payments while attending college and in times during repayment of financial difficulty. There are federal loans for both parents and students. The best know ones are Stafford Loans for students and PLUS for parents.

A lot of people turn to these programs for their funding needs. You can also often find private loans that have low interest rates for college students. Be sure to choose a reputable lender who in knowledgeable on loan choices if using a private lender.

Tuition payment plans are an interest and debt-free way to spread payments over several months. Not all colleges offer this plan. Typically used by families who have income that will cover the gap between the amount they are billed for college and the amount of financial aid received.

Assets of a family are often used to fund college. IRA’s, savings accounts, 401k plans and stocks offer a debt-free way to fund an education. As a word of caution, before you liquidate one of these accounts, consider the earnings you may be missing out on. Use this number as a comparison to the amount of interest you would incur from a student loan plan.

Credit cards are often a popular but poor choice for funding a college bound student. This is for the simple fact that interest rates can be high. Use this funding choice with caution.

It’s important to think about your own situation as you plan to fund your education. Establishing a savings plan at an early age will make a huge difference. There are lots of funding options for college bound students. Which one makes the most sense for you?

Roth IRAs – A Viable Option for College Funding?

Lately, there has been much confusion regarding the benefits of using a Roth IRA to finance a college education on a tax-free basis. This is due to the complexity of rules on taking distributions/withdrawals from Roth IRAs. There are two kinds of money in a Roth IRA: contributions and earnings. Unlike a traditional IRA, contributions to a Roth are never tax-deductible.

Since taxes have already been paid taxes on the contributions, these can be withdrawn at any time, for any reason, without paying taxes, although they may be subject to the early 10% withdrawal penalty if they come out of a Roth within five tax years. Fortunately, that penalty is waived if the contributions are used for higher education expenses such as going to college.

The same can be done with non-deductible contributions made to traditional IRAs. But, the money earned by those contributions, such as capital gains, interest and dividends is untaxed money. Untaxed money cannot be taken out without paying income tax on it until the age of 59 1/2 or older. There are some exceptions to this rule, but unfortunately higher education is not one of them.

If the earnings are withdrawn from a Roth, they are taxed at ordinary earned income rates, not the more favorable capital gains rates. Don't even think about using Roth earnings for college. A person would be far better off with a taxable account. However, a person can use Roth contributions for college.

This option is viable only if the individual has some other type of retirement plan that is funded to satisfactorily.  Obviously, the individual’s future support should come first, and the individual’s children can work their way through college. Thus, as long as the Roth isn't all that stands between a person and a mediocre, poverty ridden retirement, then yes, the Roth has some potential for college funding.

Nobody will lend an individual money for a comfortable retirement, but a student can borrow money for college. The point of saving for college is to hopefully avoid the need for a student to borrow.

But bumps in the financial road do happen sometimes, and the bottom line is that if it comes down to an either/or situation, it's more important that there is a reasonable level of retirement savings more than large college savings fund.

As far as the tax advantages are concerned, a person might as well hide the money under a mattress. The individual is simply putting some money, on which taxes have already been paid, into the Roth for a while, then taking it back out and using it to pay for college.

No taxes are paid on that kind of withdrawal just like a person wouldn't pay taxes on withdrawals from a savings account, or money you stashed in a coffee can. The tax advantages of saving for college in a Roth is good. While a person will not get tax-free treatment on earnings saved in a Roth if used for college, the contributions can be withdrawn for college expenses without tax or penalty.

The obvious solution is to leave the earnings in the Roth for retirement and withdraw the principal to pay college bills. There is some flexibility in using a Roth IRA, but here are also yearly contribution limits for the Roth, with the annual limit for the Roth IRA increasing to $4,000 in 2005, a married couple will be able to save a full $8,000 per year in Roth IRAs.

Many families with kids aren't going to be able to save more than that anyway, and if they can, the Coverdell accounts are still available to save an extra $2,000 per child per year. The treatment of college funding is often confusing, it is sufficient to say that having college savings money held in a Roth IRA can simplify the treatment of financial aid and education tax credits.

The Pros and Cons of the Coverdell ESA for College

As you’re setting up investment plans for your child’s college, it’s smart to be aware of the pros and cons of the Coverdell ESA for College. This educational savings account is a very attractive savings plan for many people. Let’s take a look at some of the negatives and positives of this program and so you can see if it’s a fit for you.

Pro- The Coverdell Education Savings Account can be self-directed with a wider array of investment products available than a 529 plan. The account can be placed in almost any sort of investment. Typically, stocks, bonds, bank CDs, mutual funds and unit investment trusts. No part of trust assets may be invested in life insurance contracts.

Pro- The Coverdell funds are available to finance elementary and secondary school, not just college. This includes items such as tuition, fees, tutoring, books, supplies, room and board, uniforms, transportation and computers.

Pro- Earnings accumulate tax-free. Qualified distributions are exempt from federal income tax. Please note that contributions are not deductible on federal or state income tax.

Pro- Corporations may contribute. This even includes tax-exempt organizations. Regardless of income level, corporations may contribute to an individuals Coverdell account.

Pro- People can contribute to both a Coverdell account and a section 529 plan in the same year. Note that there may a gift tax implication if you give more that $12,000 per beneficiary.

Con- Contributions to the Coverdell ESA are limited to $2000 per beneficiary per year. Here’s an example, you have a son and a daughter that you want to contribute $3500 into Coverdell accounts for. You deposit $2000 to your son’s account and $1500 into your daughter’s.

Their grandmother wishes to add another $1000 but she is only allowed to put $500 into your daughters account as the $2000 limit has been reached. At $2000 a year, it would be tough to have this be your entire college savings plan.

Con- Contributions can only be made until the beneficiary reaches age 18. This may be a non-issue with some families but a 529 plan would allow you greater flexibility. There are no age restrictions for special needs beneficiaries.

Con- The money must be used by the time the child reaches the age of 30. If the funds are not used, the earnings will be taxed as ordinary income plus a 10% penalty.

Con- There is less flexibility in changing beneficiaries in a Coverdell ESA. Coverdell plans are considered permanent gifts. You cannot open up an account for your child and take back the money for your own use. Typically, the parents are responsible for the account until the child reaches 18. Then, the beneficiary usually takes control of the account. There is some ability to change beneficiaries.

Con- The Coverdell ESA is not eligible for the state tax deductions available for some 529 plans. The available 529 state tax deductions vary from state to state. Of course, a tax deduction is not the only reason to select an investment.

Con- The contribution limit is phased out for contributors with an adjusted gross income between $95,000 and $110,000 for single people and between $190,000 and $220, 000 for joint filers. A clever way around this con if you’re in this income bracket is to give the money to your child and let her open a Coverdell for herself.

After looking at the pros and cons of the Coverdell education savings fund, you can see if this is a wise investment for your child. The items that have been identified as cons are non-issues for many people. Coverdell is a good investment overall for most families. Talk with your tax profession and see if it’s right for you.

Why In-State Colleges Should Be a Financial Aid Solution

Are you looking for a viable way to pay for college, but most of your college options seem like they will only put you years in debt? Is it really worth to pay for thousands of dollars in tuition each year? How can you avoid the stress of an expensive college education?

For those seeking a high quality education that will help them stay out of debt, an in state college could just be the ticket. Here are a few reasons why you’re in state college or university is worth its weight in gold.

Your In State College – Your Financial Aid Solution

How can your in state college become your financial aid solution? Easy. Attending an out of state college automatically adds thousands of dollars to your financial aid template.

Why not save yourself the stress of footing such a large bill and look for a good in state college or university? Most states have at least one or two good state colleges to choose from. Going to an in state college does not mean that you will have to sacrifice the freedom of the college experience.

Chances are you will have to make some kind of a move, even if it means moving only forty minutes away from your hometown, or on the other hand, it could possibly mean you will be moving hours away. Whatever you choose, know that an in state college will help you save thousands over the years.

Why Are In State Colleges the Affordable Choice for Students?

Choosing an in state college can be a great financial aid solution because it means that you qualify for in state tuition. This means that because you have already established residency, you will not have to pay the out of state tuition, which is often several thousand dollars more.

Moreover, in state tuitions often offer many tuition waivers to incoming students who hail from in state. If you have made above average grades throughout high school, there is a good chance that you will qualify for some sort of in state tuition assistance.

Even if this is not the case, you may consider using your local community college system as a springboard to a local in state college or university. Most community colleges also offer tuition scholarships for students wishing to transfer to an institution of higher education.

Get More Out of Your Financial Aid by Attending an In State College

Chances are that you will get more out of your federal aid if you choose an in state institution of higher learning rather than an out of state choice. You have more local resources at your disposal if you are applying for an in state institution.

In State Colleges - Offering You a Great Education without Breaking the Bank

The dirty secret about elite private institutions of higher learning is, in most cases, you can get the same quality education for a fourth of what they charge each year in tuition. Many in state colleges are highly ranked institutions of higher learning.

Recent analysts have pointed out that costs to attend many highly ranked elite private colleges and institutions have ballooned, making it even more difficult to finance a four year degree.

Along with tuition rates, the number of applicants has made it even more competitive to be accepted to these institutions. With more people applying and tuition rates climbing, securing a good financial aid package at an expensive, elite private college or university was never such a challenge.

Moreover, researchers have pointed out that a fine college education can be had at many public state colleges and institutions. In effect, in most cases you will simply be paying for ‘bragging rights’ rather than a worthier or inherently more valuable college degree.

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