SAVING FOR COLLEGE

College 529 Plan Called Optimal
Experts call the 529 college savings plan as one of the best options for saving money for college education. One of the most popular resource where you can see that is savingforcollege.com.

In fact just very recently this month Savingforcollege.com announced the list of best-performing 529 plans that are designed to help the parents and high school students in their effort of saving for college.

However, what are these 529 college saving plans?

When Kelly Davidson (1) decided she wanted to transition from a career as a high school teacher, she knew she'd have to go back to school to achieve her goal-and it would be costly. She also knew that pursuing a graduate degree would potentially impact her ability to save for retirement, so she met with her Smith Barney Financial Advisor to develop a strategy that would help enable her to return to school in five years.

With time being a key factor, the Advisor suggested that a 529 College Savings Plan-named after the section of the IRS code that authorized their creation-would be the best way to meet Kelly's education-funding goals. Using the proceeds from a settlement, Kelly set up a 529 plan for herself and launched a systematic investment plan to help her potentially maximize the account's value. Kelly's Five Year Plan was well under way, but there was one thing she hadn't planned for: right before she was slated to return to school, Kelly's husband, an executive at a multi-national corporation, received a lucrative job offer-in London. Unfortunately, Kelly's qualifications were not easily transferable, so even if she wanted to continue teaching, she would have to take additional certification courses in England.

Luckily, Kelly had saved for her graduate degree in a 529 account, so she could use the funds at any accredited university in the world. She decided to forgo the additional teachers' certification courses and apply to business schools instead. Kelly is now pursuing her MBA at the London Business School-one of the top three MBA programs in the world(2)-and using her 529 plan assets to pay for her tuition and related expenses.

In today's rapidly globalizing economy, Kelly's situation is not unique. Each year, thousands of American students either participate in study abroad programs, or enroll full-time in colleges and universities outside of the United States. In fact, according to a recent poll of college-bound students, 55 percent indicated that they are certain or fairly certain they will participate in a study abroad program, and another 26 percent indicated a strong desire to study abroad.(3)

In response to the high demand, many higher education institutions now offer a number of international learning programs, ranging from semesters at sea to cultural immersion and multi-city programs. However, despite the myriad of international programs available, many students (38 percent) still cite high costs as the top reason for lack of participation in study abroad programs.(4) In addition, using financial aid for international studies presents its own challenges: additional eligibility requirements-residency, grades, credit hours, and age, to name a few-must be met, and foreign and US semester schedules differ which can delay loans and other federal aid.

Still, there are options for those who want to finance an education abroad, including 529 College Savings Plans. The plans allow tax-free accumulation of assets and federal tax-free withdrawals for qualified higher education expenses, and the features (flexibility, control, and multiple investment options) which make 529 plans attractive for funding stateside education are also available when the plans are used with accredited foreign institutions.(5)

How It Works

Over 4005 foreign higher education institutions are eligible under the rules permitting federal tax-free withdrawals from a 529 plan. A list of eligible foreign institutions is available in the Federal School Code Lookup database on the Free Application for Federal Student Aid (FAFSA) website.

"The test for any particular school's inclusion is its eligibility to participate in Title IV federal financial aid programs," says Joseph Hurley, founder of SavingforCollege.com. "Most degree-granting four-year schools, junior and community colleges, and graduate schools will qualify, as will many proprietary and vocational schools."

Is A 529 Plan Right For You?

A 529 savings plan is one of the best tax-advantaged ways to save for higher education-whether you plan to study in the US or abroad. Most plans offer several asset allocation options, and also allow you to contribute via lump sum or through a systematic investment plan such as a payroll deduction. You should consider investing in a 529 plan if you are:

• A parent concerned about the rising costs of college,
• A grandparent who wants to help save for your grandchildren's future education expenses
• A retiree who would like to develop an existing hobby into a serious, full-time interest
• An "Empty Nester" who is still active in the workforce, but needs to return to school to remain competitive
• A professional who is considering going back to school to pursue a second degree, change careers, or to enhance your professional skills
• An adult who wants to help a child in your life- a niece, nephew, or godchild-save for future college expenses

As more higher education institutions implement international programs to address the growing demand, opportunities to study abroad are more available than they were twenty years ago. If you already have an education plan, consider whether studying abroad is an option you'd like to pursue in the future. If you need help developing an education plan, a Financial Advisor can help you get started, and can even customize a proposal based on projected costs at the schools you're considering.

Whether you plan to study stateside or beyond the country's borders, one thing is certain: college costs are on the rise, so it's important to start early. The world is your oyster; take advantage of all it has to offer.

(1) This name is a pseudonym. Name similarities to any individual living or deceased are purely coincidental.
(2) Source: 2008 Global MBA Rankings, Financial Times
(3) College-Bound Students' Interests in Study Abroad and Other International Learning Activities, CollegeBoard.com, January 2008
(4) Assets must be used for qualified higher education expenses. However the pursuit of a degree is not a prerequisite for tax-free qualifying withdrawals. Transportation costs are not considered a qualified expense.
(5) Search results as of August 15, 2008. Refer to Searching for Eligible Foreign Institutions in this article for search methodology.

EDUCATION REPORTS

Financial Aid
Attention New Borrowers of Federal Loans

Before receiving your student loan, you must complete loan entrance counseling.
If you are borrowing from a Federal Stafford Loan, you must complete the Master Promissory Note.
If you are borrowing from a Federal Perkins Loan, you must complete the Perkins Promissory Note.

Financial aid is money that is provided to help bridge the gap between your own resources and the amount of money needed to pay the cost of attending college. Approximately 70 percent of Cleveland State's students receive some form of financial assistance. The University participates in or administers all of the major federal and state grant and loan programs. In addition, Cleveland State provides University grants and scholarships.

Apply for Financial Aid
The first step in the financial aid process is completing the Free Application for Federal Student Aid (FAFSA). You must file a FAFSA every year in order to receive your financial aid.

Types of Financial Aid
When you apply for financial aid, you are applying for gift aid (scholarships and grants) and self-help programs (Federal Work-Study and loans).

Your Awards
The financial aid award letter explains the types of financial aid and amount of assistance you are expected to receive at Cleveland State for a particular academic year.

Keep Your Financial Aid
You should plan ahead and be prepared to take the necessary steps needed to meet the requirements in order to keep your financial aid.

Scholarships
Scholarships do not have to be repaid and are based on many factors, including academic merit and/or financial need.

Student Employment
Cleveland State's Student Employment Program is administered by the Financial Aid Office. The program is designed to assist matriculating students in financing their education, developing essential job skills and enhancing their University experience.

Other Financial Options
Additional resources are available to assist you in financing a college education.

Tuition & Fees
Learn how much it will cost to attend Cleveland State.

Need Help?
If you're on campus, stop by the Campus411 office, located in Main Classroom, Room 116. Campus411 is our one-stop service center, where specialists are available to assist you with your financial aid questions.

Phone: 216.687.5411
Toll-Free: 888.CSU.OHIO
Fax: 216.687.9247
E-mail: campus411@csuohio.edu

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Financial Aid Office
Cleveland State University
2121 Euclid Avenue, KB 1300
Cleveland, Ohio 44115-2214

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Center for International Services and Programs



News & Announcements
International Day 2008 Pictures
Doctorate of Business Administration now accepting applications for FALL 2009
Upcoming Events
March 25th, 2009
CPT/OPT Workshop
10:30am - 12:00pm, BU 225
March 30th, 2009
Fulbright Faculty Workshop
1:15pm - 3:30pm, MC 136
Fall 2009 Application Deadline
May 15, 2009
Welcome!
Welcome to the CSU Center for International Services and Programs (CISP). CISP provides services to international students through International Admissions and International Student Services, as well as domestic and international students through Study Abroad and the National Student Exchange. The Center also provides support and guidance to faculty and staff in their international endeavors.

International students have many opportunities for both academic and personal growth at Cleveland State University. Whether you are looking for an undergraduate ( freshman , transfer ), a master's or doctoral degree , or for English language courses, CSU offers a wide range of resources and opportunities, as well as an ideal environment to help you succeed and achieve your academic goals.

International students may also become involved in campus life through a variety of student organizations and university programs that include cultural activities, sports, the arts and social events. Our staff is especially qualified to meet the varied needs of all international students at the undergraduate and graduate level.


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ESL
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Phone: 216.687.3910
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