Take Charge and Reach Your Goals
Dec 19, 2015
Financial Tips for College
PICPAThe Pennsylvania Institute of Certified Public Accountants
PICPA is a professional association of more than 20,000 CPAs working together to improve the profession and serve the public interest.
Financial Tips for College
Tax Credits• American Opportunity Credit• Hope Credit (for 2008 or earlier)• Lifetime Learning Credit
Financial Tips for College
Get Creative with Saving Ask about tuition discounts and flexible repayment plans• Is there a discount if you pay the entire
semester’s bill up front?• What if you have the money to be directly
debited from your bank account?• Is there an alma mater discount?
Financial Tips for College
Get Creative with Saving• Ask about tuition discounts and flexible
repayment plans• Can your payments be spread over a 12-month
period?• Can payments be extended for a period after
your child graduates?• Are some charges optional?
Financial Tips for College
Get Creative with Saving • Graduate in three years, rather than four• Think about cooperative education• Enroll in a two-year school, then transfer to a
four-year• Live at home – sorry students!• Consider online courses
Financial Tips for College
Get Creative with Saving• Check to see if your employer offers assistance– Up to $5250 of employer-provided education
assistance is tax free• Have grandparents (or others) pay tuition directly to
the college. The payments they make directly to the school aren’t considered gifts for purposes of federal gift tax rules
Financial Tips for College
Returning to School as an AdultThe federal government and colleges base your aid eligibility on last year’s tax records.
If you plan to cut your hours or stop work to go back to school, your income will obviously decrease. Bring this to the attention of the financial aid director.
Financial Tips for College
Tips for StudentsHave a plan in place with your parents before starting school• Be upfront about what they will pay for and
what you will pay for• Try using monthly payments – decide ahead
of time how this will be carried out
Financial Tips for College
Tips for StudentsSet up a budget• List your sources of income• List what you think you might spend in a month:– Cost of books and school supplies– Meals and entertainment– Personal care items– Car expenses/travel
Financial Tips for College
Tips for StudentsCredit card companies aggressively target college students• A credit card is a good way to build credit
and good in case of an emergency• Try using a debit card for everyday
purchases and save the credit card for emergencies
Financial Tips for College
Tips for StudentsCredit card advice:• Beware of teaser rates• Stick with one card• Pay in full every month• Pay on time – avoid late charges• Avoid cash advance• Protect your credit history
Financial Tips for College
Tips for StudentsIt may be a good idea to open an account at a bank near your school of choice. Locate a bank that offers free or low-fee checking for students and has ATMs on or near campus.
Financial Tips for College
Resources• PICPA’s College Savings page
www.picpa.org/collegesavings • 360 Degrees of Financial Literacy
www.360financialliteracy.org • U.S. Department of Education
www.college.gov