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Financial Aid: Alternatives for parents and students
 Grants
and Scholarships
Work
Study Programs
Loan
Programs
Programs
for Parents
Programs for Parents - Explore these alternatives if
you need additional
help to meet college costs.
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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Loan
programs from private colleges and universities
- Many independent colleges and universities offer loans with varying interest rates and terms. Some programs are designed for students and some for parents.
- For additional information to determine which applications are required, check the college's catalogue or contact the financial aid office. The Free Application for Federal Student Aid (FAFSA) may be required along with the college's own financial aid application.
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Federal
Parent Loans for Undergraduate Students (PLUS)
New guidelines effective July 1, 2006:
- A federal program that allows parents and/or stepparents of dependent undergraduate students borrow money to cover any costs not already covered by the student’s financial aid package, up to the full cost of attendance. Eligibility is not based on need. Starting on July 1, 2006, graduate and professional students will also be able to borrow money through the PLUS Loan program to pay for their own education.
- The interest rate for PLUS loans is fixed at 8.5% for loans with a first disbursement after July 1, 2006. For students attending a college or university that participates in the William D. Ford Federal Direct Loan Program, the interest rate is fixed at 7.9%. The interest is not subsidized while the student is in school, and the repayment term is up to 10 years. For more information, contact the college financial aid office.
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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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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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New York
State college tuition tax credit/deduction
- In New York State, a refundable credit or an itemized deduction for a percentage of qualifying undergraduate tuition expenses ($10,000 maximum) is permitted.
- A Tuition Tax Credit of up to 4% of tuition may be used by taxpayers who do not itemize deductions.
- Consult your tax advisor or go to www.hesc.org and search for "tuition tax credit."
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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
Incentive programs for higher education
Visit www.irs.gov,
or consult your tax advisor for more information
about the programs listed below:
- Community service loan forgiveness
- Education savings accounts (tax free)
- Employer-provided educational benefits
- Expanded benefits for pre-paid tuition plans
- Hope Scholarship
- Provides a tax credit of up to $1,500 for the net cost (after financial aid) of tuition/fees in each of the first 2 years of postsecondary education (or other eligible post-secondary training).
- IRA withdrawals
- Lifelong Learning Tax Credit
- For adult students, provides a tax credit of up to $1,000 for 20% of the net cost (after financial aid) of tuition/fees in the 3rd or 4th year of undergraduate, graduate/professional or part-time postsecondary study.
- Student Loan Interest Deduction
- Provides for a tax deduction of $2,500 for the interest paid on a qualified student education loan.
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