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ERIC Number: ED276364
Record Type: Non-Journal
Publication Date: 1986-Nov
Pages: 5
Abstractor: N/A
ISBN: N/A
ISSN: N/A
EISSN: N/A
The Office of Family Finance and Planning (Formerly the Financial Aid Office).
Case, Karl E.
AAHE Bulletin, p8-11 Nov 1986
The need for advance planning to finance college studies is addressed. It is suggested that financial aid officers should stop thinking about this year's family income and current assets as a pool of resources to be tapped to pay for this year's parental contribution to college costs. Instead, income and assets might be viewed as indicators of a household's long-term ability to finance a major purchase. An example of a discussion that an aid officer might have with a parent using the current logic of the "Financial Aid Form Needs Analysis Report" is presented. The conversation presents two problems: (1) it takes place 6 months before college entry when the parent looks for help from the college, and (2) only this year's income and parent contribution are discussed. An alternative conversation that might take place could inform the parent that: paying over more years makes the payment lower; deciding to pay early will result in interest; and compounding interests can yield large gains. Tables provide a family financial profile and alternative ways to pay for college. It is recommended that a college assemble information on borrowing options open to parents and that talks be given to parents as early as the child's elementary and junior high years. Computer software can help determine monthly payments that will cover future college expenses. (SW)
Publication Type: Journal Articles; Opinion Papers
Education Level: N/A
Audience: Administrators; Practitioners
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A