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Financial Aid: Alternatives for parents and students
 Grants
and Scholarships
Work
Study Programs
Loan
Programs
Programs
for Parents
Sample College Financial Aid Package
Programs for Parents - Explore these alternatives if
you need additional
help to meet college costs.
Federal
AmeriCorps
- A federal volunteer program in which participants serve for 10 to 12 months. At the completion of service, full-time participants receive a $4,725 education award ($2,362 for part-time service). The voucher may be used to pay off qualified student loans or pay for future education expenses at qualified schools.
- For more information, call 1-800-942-2677, or visit www.americorps.org.
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Federal
Parent Loans for Graduate/Professional Students (PLUS)
- Graduate and professional degree students may borrow through the PLUS loan program up to their cost of attendance minus other aid. Students must have first applied for maximum loan eligibility under the Stafford loan program and must have acceptable credit history.
- To apply, students must complete the FAFSA and a Federal Direct PLUS loan application. Check with the college for loan application procedures. For more information, visit www.hesc.com
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Federal
Parent Loans for Undergraduate Students (PLUS)
- PLUS is a federal loan program where parents and/or stepparents may borrow up to the cost of attendance, less other financial aid, each year for each undergraduate dependent child enrolled at least half-time. Eligibility is not based on need but parents must have acceptable credit history or an eligible co-signer. PLUS loans can be used to meet the calculated family contribution.
- The interest rate is fixed at 8.5% for loans with a first disbursement after July 1, 2006(7 to 9% for Direct PLUS loans at certain colleges.) Borrowers may have up to 10 years to repay. Interest may be tax deductable.
- Check with the college for application procedures. For more information, visit www.hesc.com
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Home equity
loans or line of credit
- These methods of financing an education offered by many banks and lending institutions enable parents to access the equity in their home. When used for educational purposes, there may be significant tax advantages. Contact the college financial aid office or your tax advisor for additional information.
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Federal
Incentive Programs for higher education
- In 2009 and 2010, families may be able to claim a credit of up to $2,500 for qualified tuition and related expenses, including related fees, books and other required course materials paid for higher education. The credit is equal to 100% of the first 2,000 spent and 25% of the next $2,000 per student each year. 40% of the credit is refundable, so even taxpayers who owe no tax can get up to $1,000 of the credit for each eligible student as cash back. The credit would phase out at income levels of $80,000 (single filters) or $160,000 (joint filters).
- Additional programs include IRA withdrawals. employer-provided education benefits, and expanded benefits for pre-paid tuition plans.
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Interest-free
monthly payment plans
- Interest-free, insured, monthly installment plans are available at many colleges for payment of tuition, fees, room and board and other expenses. Generally, 10- or 12-month payment options are available at no interest.
- Check with the college's financial aid office or catalogue for additional information.
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New York State college tuiton tax credit/deduction
New York State taxpayers may take either a:
- Tax credit or an itemized tax deduction for college tuition expenses at an in-state or out-of-state institution for their dependent's, spouse's or their own undergraduate study; or,
- Itemized deduction for qualified college tuition expenses up to a maximum of $10,000 for each eligible student.
For more information consult your tax advisor or go to: www.hesc.org
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New York State's 529 College Savings Program
- Start a college savings program with a minimum $25 deposit. You need not be a New York State resident, although NYS taxpayers may deduct their contributions to the fund, up to $5,000 per year (up to $10,000 for married couples filing jointly), from NYS net taxable income. Qualified withdrawals are exempt from state and federal income taxes. Savings may be used to meet college costs at any eligible college or university in the U.S. and some foreign institutions.
- For information, call 1-877-NYSAVES, or visit www.nysaves.org.
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