Preparing Your Child For College


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Preparing Your Child For College

A Resource Book for Parents

A NOTE TO PARENTS

It's never too early to think about college -- about the benefits of a
college education and about ways to put college within reach academically and
financially. Throughout their school years, students make academic and other
decisions that affect whether they will be eligible to enter college. You --
working with others -- can help your child make these decisions wisely.

This resource book is designed to help you with that process. It will
help you work with your child and with your child's teachers and guidance
counsellors, to ensure that he or she has the option of going to college. It
will help your child to prepare academically for the rigors of college, and
it will help you to plan financially for the costs of a college education. A
good academic record on your child's part and sound financial planning on your
part will help ensure a menu of opportunities when the time comes to decide
about college. Although this book was written primarily as a long-term
planning guide for parents, guidance counsellors and teachers will also find
it useful and informative.

This book will help you to

-- Set high expectations for your child's future;

-- Know what college options are available;

-- Plan your finances with college in mind; and

-- Know what financial assistance your child may be eligible to
receive.

To ensure that today's students will be able to live, work, and compete
in the 21st century, the U.S. Department of Education and the Nation's
governors set a direction for the Nation by establishing six national
education goals. In brief, the goals state that by the year 2000

* All children in America will start school ready to learn;

* The high school graduation rate will improve to at least 90 percent;

* All children will be competent in at least English, mathematics,
science, history, and geography;

* American students will be first in the world in science and
mathematics;

* Adult Americans will be literate and have the skills necessary to
compete in a world economy;

* And every school in America will be free of drugs and violence.

As we turn from a "Nation at Risk" to a "Nation on the
Move" we must assure that our children and youth are prepared to meet
the challenge of the world economy, the obligation of civic responsibility,
and the responsibility of attaining the national education goals.

Attaining the national education goals depends greatly on the efforts
of the entire community, but especially you, the parents of our children. In
helping your child succeed in high school and aim for college, you're also
helping our Nation produce informed citizens and a competitive work force for
the next decade and beyond.

Richard W. Riley U.S. Secretary of Education

PREPARING YOUR CHILD FOR COLLEGE

I. General Questions About College

Why attend college? What types of colleges exist? What kinds of jobs
are available to college graduates?

II. Preparing for College What can my child do to prepare academically
for college? What can my child do outside the classroom to prepare for
college?

III. Choosing a College

How can my child go about choosing a college?

IV. Financing a College Education

How much does a college education cost? How can I afford to send my
child to college? What are the most common sources of financial aid? Is my
child eligible for financial aid? If so, how much ? Are there other ways to
keep the cost of college down?

V. Long-Range Planning

How do I set up a long-range plan?

VI. Important Terms

What terms do I need to understand?

VII. Other Sources of Information

Where can I get more information on the topics discussed in this
handbook?

Exercises and Checklists for You and Your Child

Help Your Child Think About a Career Course Planner for Parent and
Student College Inquiries College Preparation Checklist for Students
Financial Preparation Checklist for Parents

Charts

Chart 1: Examples of Jobs Requiring College Preparation Chart 2: High
School Courses Recommended for a Four-Year College Chart 3: Questions To Ask
Guidance Counsellors Chart 4: Distribution of College Students by the Amount
of Tuition and Fees Charged Chart 5: Typical College Chart 6: Average Tuition
and Fees By Type of College, School Year 1991-1992 Chart 7: Amount You Would
Need To Save To Have $10,000 Available When Your Child Begins College Chart
8: Examples of Savings Instruments and Investments Chart 9: How Much
Need-Based Financial Aid Can My Child Get? Chart 10: Military Post secondary
Education Opportunities

Why attend college?

A college degree can provide your child with many opportunities in
life. A college education can mean:

Greater Knowledge

A college education will increase your child's ability to understand
developments in science and in society, to think abstractly and critically,
to express thoughts clearly in speech and in writing, and to make wise
decisions. These skills are useful both on and off the job.

Greater Potential

A college education can help increase your child's understanding of the
community, the Nation, and the world--as he or she explores interests,
discovers new areas of knowledge, considers lifelong goals, and becomes a
responsible citizen.

More Job Opportunities

The world is changing rapidly. Many jobs rely on new technology and
already require more brain power than muscle power. In your child's working
life, more and more jobs will require education beyond high school. With a
college education, your child will have more jobs from which to choose.

More Money

A person who attends college generally earns more than a person who
does not.

For example, in 1989, a person with a college degree from a four-year
college earned approximately $10,000 more in that year than a person who did
not go to college. With a college education, your child can earn higher pay.

Some of these benefits of college may not be obvious to your child.
Even though he or she has to make the final decision to attend college, you
can help in the decision-making process by learning about all aspects of
college yourself and sharing what you learn with your child.

What types of colleges* exist?

* Throughout this document, the term "college" is used to
refer to all collegiate institutions--both colleges and universities.

More than half of all recent high school graduates in the United States
have had some type of post secondary education. In many other countries, a
smaller percentage of students go on for more schooling after high school.
One reason so many U.S. students seek post secondary education is that
American students have a wide choice of colleges to consider. For this
reason, your child is likely to find a college well-suited to his or her
needs.

There are two basic types of colleges that offer academic programs: Two-Year
Colleges

These schools offer two-year programs leading to a certificate, an
associate of arts (A.A.) degree, an associate of science (A.S.) degree, or an
associate of applied science (A.A.S.) degree.

Four-Year Colleges and Universities

These schools usually offer a bachelor of arts (B.A.) or bachelor of
science (B.S.) degree. Some also offer graduate and professional degrees.

Two-Year Colleges

For students who want a practical education aimed at a specific career
in such areas as bookkeeping, dental hygiene, etc., a two-year program is
probably the answer. In many cases, two-year degrees can be transferred to
four-year schools and credited toward a B.A. or B.S. degree. Two-year
programs vary from school to school, but, in general, are offered by:

Junior Colleges: These are generally private institutions, some of
which are residential and attended by students who may come from other parts
of the country; and

Community Colleges: These are public institutions, mostly serving
people from nearby communities. Public institutions are supported by state
and local revenues.

Many junior and community colleges offer technical/vocational training,
as well as academic courses. Many offer such programs in cooperation with
local businesses, industry, public service agencies, or other organisations.

Two-year colleges often operate under an "open admissions"
policy, which can vary from school to school. At some institutions,
"open admissions" means that anyone who has a high school diploma
or GED certificate can enrol. At other schools, anyone over 18 years of age
can enrol or, in some cases, anyone deemed able to benefit from the programs
at the schools can enrol.

Application requirements at some two-year colleges may include a high
school transcript--a list of all the courses your child took and grades
earned in four years of high school--and college entrance examination scores
as well. Some schools have programs that allow "open admissions,"
while other programs in the same school--particularly in scientific or
technical subjects--may have further admission requirements. Since
requirements vary widely, it is important to check into schools and programs
individually.

Four-Year Colleges and Universities

Students who wish to pursue a general academic program usually choose a
four-year college or university. Such a program lays the foundation for more
advanced studies and professional work. Four-year colleges and universities
offer bachelor's degrees (the B.A. and B.S.)in most areas in the arts and
sciences, such as English literature, foreign languages, history, economics,
political science, biology, zoology, chemistry, and in many other fields.

Here are the main differences between four-year colleges and
universities:

Four-Year Colleges: These are post secondary schools that provide
four-year educational programs in the arts and sciences. These colleges
confer bachelor's degrees.

Universities: These are post secondary schools that include a college
of arts and/or sciences, one or more programs of graduate studies, and one or
more professional schools. Universities confer bachelor's degrees and
graduate and professional degrees.

When a student earns a bachelor's degree it means that he or she has
passed examinations in a broad range of courses and has studied one or two
subject areas in greater depth. (These one or two subject areas are called a
student's "major" area(s) of study or area(s) of
"concentration.") A bachelor's degree is usually required before a
student can begin studying for a graduate degree. A graduate degree is
usually earned through two or more years of advanced studies beyond four
years of college. This might be a master's or a doctoral degree in a
particular field or a specialised degree required in certain professions such
as law, social work, architecture, or medicine.

What kinds of jobs are available to college graduates?

Certificates and degrees earned by graduates of two- and four-year
colleges or universities usually lead to different kinds of professional
opportunities. Many professions require graduate degrees beyond the
traditional four-year degree, such as a medical degree or a law degree. For
example:

A course of study in bookkeeping at a community college generally
prepares a student for a Job as a bookkeeper.

A four-year degree in economics may prepare a student for any one of
several Jobs in a bank or a business.

A four-year degree in English may serve as background for getting
teacher certification in the subject or for being an editor with a magazine.

In Chart 1 below there is a partial listing of different occupations
and the educational background generally required for each. Some people who
go on to acquire Jobs in the four-year-college column obtain a graduate
degree or some graduate education, but many of these Jobs can be filled by
people who do not have more than a four-year college education. For more
information on the educational requirements of specific jobs, contact a
guidance counsel or or check the Occupational Outlook Handbook in your
library. (See the last section of this handbook for information on this book
arid other publications that discuss jobs.)

CHART I

Examples of Jobs Requiring College Preparation

Two-Year College (Associate's Degree)

Electrician Drafter Dental Hygienist Emergency Medical Technician
Computer Service Technician Bookkeeper Commercial Artist Film Technician
Medical Illustrator

Four-Year College (Bachelor's Degree)

Accountant Teacher Registered Nurse Engineer Journalist Diplomat
Insurance Agent

More Than Four Years of College (Various Graduate Degrees Required)

Lawyer Doctor Architect Scientist University Professor Economist
Psychologist Sociologist Dentist

EXERCISE

Help Your Child Think About a Career

Step 1:

Sit down with your child and make a list of jobs that sound
interesting. It may help to first think about friends or people you've read
about or have seen on television who have interesting jobs. List those jobs
in the left-hand column. If your child cannot think of interesting jobs, have
him or her list subject areas of interest.

Then try to help your child identify jobs in those subject areas.
Depending on the job, there may be courses in middle school or high school
that will give your child a preview of the type of knowledge that is needed
for the particular job. In the right-hand "Education" column, write
down the level of education required for the job and any high school or college
courses that may help your child prepare for such a career.

Step 2:

Take the list to your local library and, with the help of a reference
librarian, locate books on some of the careers your child has selected.
Libraries usually have directories that list career requirements. It is not a
problem if your child does not know what career path he/she wants to follow;
his or her focus during these years should be on doing well in school.

What can my child do to prepare academically for college?

To prepare for college, there is no substitute for your child getting a
solid academic education. This means your child should take challenging
courses in academic subjects and maintain good grades in high school. Your
child's transcript will be an important part of his or her college
application.

A college education builds on the knowledge and skills acquired in
earlier years. It is best for your child to start planning a high school
course schedule early, in the seventh or eighth grade. Students who don't
think ahead may have difficulty completing all the required or recommended
courses that will help them qualify for college.

Most selective colleges (those with the highest admissions
requirements) prefer to admit students who have taken courses in certain
subject areas. For example, many colleges prefer that high school students
take algebra, geometry, or some other type of specialised math, rather than
general math. Some colleges prefer three or four years of a foreign language.
Your child's guidance counsel or can help your child determine the high
school courses required or preferred by different types of colleges. If your
child is interested in specific colleges, he or she can contact those schools
and ask about their admissions requirements.

Your child should take courses in at least these core areas:

-- English

-- mathematics

-- science

-- history and geography

A foreign language and computer science are also highly recommended.

Chart 2 lists the high school courses that many higher education
associations and guidance counsellors recommend for a college-bound student.
These courses are especially recommended to students who want to attend a
four-year college. Even if your child is interested in attending a two-year
college, he or she should take most of these courses since they provide the
preparation necessary for all kinds of post secondary education.

If your child is interested in pursuing a vocational program in a
two-year college, he or she may want to supplement or substitute some of the
courses listed in the chart with some vocational or technical courses in his
or her field of interest. Your child should take at least the suggested
courses in the core areas of English, math, science, history, and geography.

Traditional English courses such as American and English literature
will help students improve their writing skills, reading comprehension, and
vocabulary. History and geography will help your child better understand our
society as well as societies around the world.

Mathematical and scientific concepts and skills learned in math classes
are used in many disciplines outside of these courses. A recent study showed
that students who take algebra and geometry in high school are much more
likely to go on to college than students who do not. Algebra and geometry are
also essential preparation for the college entrance examinations--the SAT
(Scholastic Aptitude Test) or the ACT Assessment.

These tests measure a student's aptitude in mathematical and verbal
comprehension and problem solving. Students applying to colleges in the East
and West usually take the SAT exam. Students applying to schools in the South
and Midwest often take the ACT. (However, students should check the admission
requirements at each school to which they are applying.) Usually, the tests
are offered in the Junior and senior years of high school and can be taken
more than once if a student wishes to try to improve his or her score.
Students can get books at libraries or bookstores to help them to prepare for
all of the tests. Some of these books are listed at the back of this resource
book. In addition, some private organisations and companies offer courses
that help students prepare for these exams.

CHART 2

High School Courses Recommended for a Four-Year College

Although academic requirements differ across colleges, the admissions
requirements listed below are typical of four-year colleges. The specific
classes listed here are examples of the types of courses students can take.

English -- 4 years

Types of classes:

composition American literature English literature World literature

Laboratory Science -- 2 to 3 years

Types of classes:

biology earth science chemistry physics

Mathematics -- 3 to 4 years

Types of classes:

algebra I algebra II geometry trigonometry pre calculus calculus

Foreign Language -- 2 to 3 years

Types of classes:

French German Spanish Latin Russian Japanese

History & Geography -- 2 to 3 years

Types of classes:

geography U.S. history U.S. government world history world cultures

Visual & Performing Arts -- 1 year

Types of classes:

art dance drama music

Appropriate Electives -- 1 to 3 years

Types of classes:

economics psychology statistics computer science communications

Many schools offer the Preliminary Scholastic Aptitude Test/National
Merit Scholarship Qualifying Test (PSAT/NMSQT) to their students. This is a
practice test that helps students prepare for the Scholastic Aptitude Test
(SAT). The PSAT is usually administered to tenth or eleventh grade students.
A student who does very well on this test and who meets many other academic
performance criteria may qualify for the National Merit Scholarship Program.
You and your child can find out more about the PSAT/NMSQT and the National
Merit Scholarship Program by talking to your child's guidance counsel or or
by calling or writing to the number or address provided in the back of this
handbook.

Some colleges also require that an applicant take one or more
Achievement Tests in major areas of study. It is a good idea for a student to
consult a guidance counsel or about this early in high school; often the best
time to take an Achievement Test is right after the student has taken a
course in that subject. For example, many students take the Biology
Achievement Test right after they have completed a course in biology. This
could mean that your child would take his or her first Achievement Test as a
freshman or sophomore in high school.

At the back of this handbook, in the section that lists places where
you can get additional information, you will find the address and phone
number where you can write or call for more information about the SAT and the
Achievement Tests. You will also find the address and phone number for the
organisation that administers the ACT.

Knowing what will be required for college is important; by taking the
right courses and examinations from the beginning of high school, your child
may avoid admission problems later on. In addition, students who do not
prepare well enough academically in high school, if admitted to college, may
be required to take remedial courses. Most colleges do not offer credit for
these courses, and students may have to pay for these extra courses and spend
extra time in college to earn their degrees. Chart 3 lists some questions
that you or your child may want to ask your child's guidance counsel or.

CHART 3

Questions To Ask Guidance Counsellors

* What basic academic courses do they recommend for students who want
to go to college?

* How many years of each academic subject does the high school require
for graduation?

* What elective courses do they recommend for college-bound students?

* How does a student go about completing recommended courses before
graduating from high school?

* Can students who are considering college get special help or
tutoring?

* What activities can students do at home and over the summers to
strengthen their preparation for college?

* How much homework is expected of students preparing for college?

* What kinds of high school grades do different colleges require?

What can my child do outside the classroom to prepare for college?

Interpersonal and leadership skills, interests and goals are all
important for college preparation. independent reading and study,
extracurricular activities, and work experience will all help your child
develop his or her skills, interests, and goals.

Independent Reading and Study

Independent reading and study will help your child to prepare
academically for college. This is a good way to develop interests, expand
knowledge, and improve vocabulary and reading comprehension skills needed for
college and the SAT or ACT. Encourage your child to read all kinds of books
for fun--fiction and non-fiction. The school library and the local public
library are good sources of books, magazines, and newspapers.

Extracurricular Activities

Many school, community, and religious organisations enable high school
students to explore their interests and talents by providing activities
outside the classroom. Colleges are often interested in a student's
extracurricular activities such as school clubs, the student newspaper,
athletics, musical activities, arts, drama, and volunteer work, especially if
a student has excelled in one or more of these areas.

Work Experience Work experience--paid or volunteer--can teach students
discipline, responsibility, reliability, teamwork, and other skills. Some
students tutor elementary school children or fellow students in a subject
they have mastered themselves. Others help the disadvantaged or volunteer in
hospitals. Many colleges are interested in knowing about this type of
experience.

A summer job is a good way to gain experience and earn money for
college as well. If your child works during the school year, he or she should
not work so many hours that the job interferes with school work.

Creating a Good Place To Study

Your child needs a quiet and comfortable place to study. Here are a few
things that you can do:

(1) Help him or her find a quiet place with some privacy.

(2) Set up a desk or large table with good light and place reference
books such as a dictionary on the desk or nearby.

(3) Make sure your child studies there on a regular basis.

How can my child go about choosing a college?

Colleges are located in big cities, suburbs, and small towns throughout
the country. Some enrol tens of thousands of students; others enrol only a
few hundred. Some are public; others are private. Some private institutions
are affiliated with religious institutions; others are not. Some schools
enrol only women, others only men.

The type of institution best suited to your child depends on his or her
individual needs and talents. Your child can begin focusing on the choice of
a college by considering the following questions:

-- Why do I want to go to college?

-- What do I hope to achieve in college?

-- Do I have some idea of what I want to study or for which job I want
to prepare?

-- Do I want to live at home or go away to school?

-- Do I prefer an urban or suburban environment?

-- Would I be happier in a small college or at a large university?

In order to choose a college, you and your child should ask the
following questions about the nature and qualify of the schools in which your
child has an interest.

The Nature of the Education Offered

* What is the philosophy of the particular college and what kinds of
educational programs does this college offer?

Ask about the college's specialities, which types of classes the school
offers, and in which fields students can earn a degree or certificate. How
many students study in each area, and what do they do when they graduate?

* How long does it take to earn a certificate or degree at this
college?

Students should know how much time it takes to complete a program
before they enrol in it. Programs can last anywhere from a few months to
several years. Also ask whether the time involved reflects full-time or
part-time attendance.

* What do students do when they graduate from this school? Do they get
jobs in the areas that they were trained for? Do they pursue further
education?

Job placement rates are particularly important for vocational programs.
If a very low percentage of students are employed in their area of training a
year after completing the program, there may be a problem. It can also be
useful to ask about beginning salaries of program graduates and the
institution's career advising and placement services for its students.

Students who enrol in two-year colleges plans to transfer to four-year
colleges should inquire about the possibility of doing so and about the
number of graduates who transfer each year. Students applying to four-year
colleges may want to know how many graduates go on to graduate or
professional education.

The Quality of the College

* How many students who start at this school earn a certificate or
degree? How many drop out?

A high drop-out rate may suggest that students are dissatisfied with
the education an institution provides. Be particularly careful about having
your child enrol in a school that graduates a very low percentage of its
students. Also ask about tuition refund policies for students who drop out in
the first weeks of an educational program.

* What is the default rate at this college? Do students repay their
loans?

The default rate is the percentage of students who took out student
loans to help pay their expenses but did not repay them properly. A high
default rate may suggest that students who borrowed never completed their
educational program, or that they were unable to find jobs and repay the
loans when they graduated. Colleges with consistently high default rates may
be barred from student loan programs, and students attending these
institutions may thus be ineligible for Federal loans.

* Have other students who have gone to this college liked it? What has
their experience been?

Colleges should be able to refer you to current students or recent
graduates of their programs. These individuals can give you their opinion
about classes, facilities, the faculty (teachers), and the skills they have
learned.

* What kinds of facilities does this college have? Are they adequate
for my child's needs?

You and your child should consider the condition of classrooms,
libraries, and dormitories when choosing a college. The types of facilities
appropriate for a college depend on the type of education provided. For
example, a college offering classes in the sciences should have modern
laboratories, and an institution that offers computer education classes
should have adequate computer facilities.

Admissions Requirements and Financial Aid

* What admissions requirements does this college have?

Each institution can require students to take certain high school
classes and submit certain items with their applications. Make sure you know
what is required by the schools that interest your child.

* Is this college accredited by an agency recognised by the Secretary
of Education and eligible to participate in Federal student aid programs?

Federal financial aid is available only to students attending eligible
institutions. Students attending other institutions cannot receive Federal
financial aid. If you are interested in having your child apply for Federal
financial aid, be wary of unaccredited institutions and those with high
default rates. You can call the Federal Student Financial Aid Information
Centre toll-free to find out if a particular college is an eligible
institution. The number is 1-800-4FED-AID.

EXERCISE

College Inquiries

Help your child list the colleges he/she knows about and might be
interested in attending. Write down whether they are two-year or four-year
colleges or universities. Ask your child why these schools are appealing to
him or her. You and your child may want to contact the colleges to get more
information.

How much does a college education cost?

Many people overestimate the cost of college or believe that all
schools are expensive. For example, a recent Gallup survey indicated that 13-
to 21-year-olds overestimated the average cost of public two- and four-year
colleges by more than three times the actual figure. The same group estimated
that the costs of private four-year colleges were one-third higher than they
actually were.

Although some colleges are expensive, costs vary from institution to
institution. In addition, the availability of financial aid--money available
from various sources to help students pay for college--can make even an
expensive college affordable for a qualified student.

College Costs

The basic costs of college are tuition, fees, and other expenses:

* Tuition

Tuition is the amount of money that colleges charge for instruction and
for the use of some facilities, such as libraries. Tuition can range from a
few hundred dollars per year to more than $18,000. However, there are a few
institutions that don't charge any tuition at all. Most students attend
colleges that charge less than $3,000 per year for tuition. This occurs
because over three-quarters of students attend public institutions whose
tuitions are much lower than those of private institutions.

* Fees

Fees are charges (usually small) that cover costs generally not
associated with the student's course load, such as costs of some athletic
activities, student activities, clubs, and special events.

* Other Expenses

Besides tuition and fees, students at most colleges and universities
pay for room, board, books, supplies, transportation, and other miscellaneous
costs. "Room and board" refers to the cost of housing and food.
Typical college costs are listed in Chart 5 below.

CHART 5

Typical College Costs

Tuition   Books
Fees   Supplies
Room   Transportation
Board   Miscellaneous Expenses

Tuition at Public and Private Colleges

It is important to know the difference between public and private
institutions. A school's private or public status has a lot to do with its
tuition.

* Public Institutions

Over three-quarters of all students in two- and four-year colleges
attend State or other public colleges. Since these schools receive a large
proportion of their budgets from State or local government, they can charge
students who live in that State (in-state students) relatively low tuition.
Students from other States (out-of-state students) usually pay higher
tuition.

In 1991-92, in-state students attending public four-year colleges faced
an average tuition and fees of $2,137 per year. in-state students at public
two-year colleges faced an average tuition and fees of $1,022 per year in
1991-92.

If the costs of room, board, books, supplies, and transportation are
added to tuition and fees, the average total cost of attending a public
four-year college was $6,437 in 1991-92. Since many students who attend
two-year public schools live at home, the average total cost of attending a
two-year public college in 1991-92 was $2,404. This includes the cost of
tuition, fees, books, supplies, and transportation for a commuter student.

* Private Institutions

Private (sometimes called "independent") institutions charge
the same tuition for both in-state and out-of-state students. Private college
tuitions tend to be higher than those of public colleges because private
schools receive less financial support from States and local governments.

Most private colleges are "non-profit." Other private post
secondary schools-mostly vocational and trade schools--are
"proprietary." Such institutions are legally permitted to make a
profit. Students at private colleges in 1991-92 faced an average tuition and
fees of $10,017 per year at four-year colleges and $5,290 per year at
two-year non-profit colleges.

If the costs of room, board, books, supplies, and transportation are
added to tuition and fees, the average total cost of attending a private
four-year college was $15,381 in 1991-92. If these same kinds of costs are
added to the tuition and fees of a two-year private college, the average
total cost of attending such a school was $10,019 in 1991-92.

Chart 6 below shows the average tuition and fees faced by students at
four different kinds of colleges in school year 1991-92.

Future College Costs

By the time your child is ready to attend college, the tuition, fees,
and costs of room, board, and other expenses will be larger than the amounts
discussed in this handbook. Because there are many factors that affect the
costs of a college education, it is impossible to know exactly how much
colleges will charge when your child is ready to enrol. Be cautious when
people tell you a particular amount; no one can be sure how much costs will
change over time. In addition, as college costs increase, the amount of money
you earn, and thus the amount you will have available to pay for college,
will also rise.

How can I afford to send my child to college?

Saving money in advance and obtaining financial aid are common ways for
parents to make their child's education affordable. Other ways of making
college affordable, such as attending college part time, will be discussed
later in this handbook. (See the section beginning on page 32.)

Saving Money

Saving money is the primary way to prepare for the costs of college.
Setting aside a certain amount every month or each pay day will help build up
a fund for college. If you and your child begin saving early, the amount you
have to set aside each month will be smaller.

In order to set up a savings schedule, you'll need to think about where
your child might attend college, how much that type of college might cost,
and how much you can afford to save. Keep in mind that colleges of the same
type have a range of costs and your child may be able to attend one that is
less expensive. You can also pay part of the costs from your earnings while
your child is attending school. In addition, your child may also be able to
meet some of the costs of college by working during the school year or during
the summer. Finally, some Federal, State, or other student financial aid may
be available, including loans to you and to your child.

You will also want to think about what kind of savings instrument to
use or what kind of investment to make. By putting your money in some kind of
savings instrument or investment, you can set aside small amounts of money
regularly and the money will earn interest or dividends. Interest refers to
the amount that your money earns when it is kept in a savings instrument.
Dividends are payments of part of a company's earnings to people who hold
stock in the company.

A savings instrument has an "interest rate" associated with
it; this refers to the rate at which the money in the instrument increases
over a certain period of time. Principal refers to the face value or the
amount of money you place in the savings instrument on which the interest is
earned.

Chart 7 shows how much you would need to save each month in order to
have $10,000 available when your child begins college. As the chart
demonstrates, the amount varies depending on the interest rate you obtain and
the number of years that you save. The higher the interest rate and the
earlier you begin to save, the less you need to set aside each month.

For example, if you start saving when your child is born, you will have
18 years to save. As shown on the chart, each month you will only have to
deposit $32 in an account earning 4 percent interest in order to save $10,099
by the time your child is 18. However, if you use the same savings instrument
but do not start to save until your child is 16, you will have to save $401
each month. In addition, if you use the instrument with the higher interest
rate--8 percent--you will only have to put away $21 each month starting when
your child is born.

Remember, by starting to save early and by using instruments with
higher interest rates, you can put aside smaller amounts. If you wait until
later to start saving, you may not be able to afford to put away the larger
amounts of money needed to meet your savings goals.

CHART 7 Amount You Would Need To Save To Have $10,000 Available When
Your Child Begins College

Amount Available When Child Begins College

If you start Number saving when of years Monthly your child saving Savings
Principal Earned Savings

(Assuming a 4 percent interest rate.)

New born    18    $32    
$6,912    $3,187    $10,099

Age 4          14
    45    7,560   
2,552    10,112

Age 8         
10    68    8,160   
1,853    10,013

Age 12         
6    124    8,928   
1,144    10,072

Age 16         
2    401    9,624   
378    10,002

(Assuming an 8 percent interest rate.)

New born    18    $21   
$4,536    $5,546    $10,082

Age 4         
14    33    5,544   
4,621    10,165

Age 8         
10    55    6,660   
3,462    10,062

Age 12         
6    109    7,848   
2,183    10,031

Age 16         
2    386    9,264   
746    10,010

When deciding which type of savings instrument or Investment is right
for you and your family, you should consider four features:

-- Risk: The danger that the money you set aside could be worth less in
the future.

-- Return: The amount of money you earn on the savings instrument or
investment through interest or dividends.

-- Liquidity: How quickly you can gain access to the money in the
instrument or investment.

-- Time Frame: The number of years you will need to save or invest.

When you select one or more savings instruments or investments, you
should balance these factors by minimising the risk while maximising the
return on your money. You will also want to be sure that you will be able to
access the money at the time you need to pay for your child's education.

If you start early enough, you may feel confident about making some
long-term investments. Some investments are riskier than others but can help
you earn more money over time. Chart 8 lists some of the major kinds of
savings instruments and investments that you may want to use. You can get
more information on these and other savings instruments at local banks and at
your neighbourhood library.

Don't forget that you won't necessarily have to save for the entire
cost of college. The following section tells about student financial aid for
which you and your child might qualify and other ways to keep college costs
down.

[Graphic Omitted]

Financial Aid

Financial aid can help many families meet college costs. Every year
millions of students apply for and receive financial aid. In fact, almost
one-half of all students who go on for more education after high school
receive financial aid of some kind. In school year 1990-91, post secondary
students received about $28 billion in financial aid.

There are three main types of financial assistance available to
qualified students at the college level:

-- Grants and Scholarships;

-- Loans; a

-- Work-Study.

* Grants and Scholarships

Grants and scholarships provide aid that does not have to be repaid.
However, some require that recipients maintain certain grade levels or take
certain courses.

* Loans

Loans are another type of financial aid and are available to both
students and parents. Like a car loan or a mortgage for a house, an education
loan must eventually be repaid. Often, payments do not begin until the
student finishes school, and the interest rate on education loans is commonly
lower than for other types of loans. For students with no established credit
record, it is usually easier to get student loans than other kinds of loans.

There are many different kinds of education loans. Before taking out
any loan, be sure to ask the following kinds of questions:

-- What are the exact provisions of the loan?

-- What is the interest rate?

-- Exactly how much has to be paid in interest?

-- What will the monthly payments be?

-- When will the monthly payments begin?

-- How long will the monthly payments lost?

-- What happens if you miss one of the monthly payments?

-- Is there a grace period for paying back the loan?

In all cases, a loan taken to pay for a college education must be
repaid, whether or not a student finishes school or gets a job after
graduation. Failure to repay a student loan can ruin a person's credit rating
and make finances much more difficult in the future. This is an important
reason to consider a college's graduation and job placement rates when you help
your child choose a school.

* Work-Study Programs

Many students work during the summer and/ or part time during the
school year to help pay for college. Although many obtain jobs on their own,
many colleges also offer work-study programs to their students. A work-study
job is often part of a student's financial aid package. The jobs are usually
on campus and the money earned is used to pay for tuition or other college
charges.

The types of financial aid discussed above can be merit-based,
need-based, or a combination of merit-based and need-based.

* Merit-based Financial Aid

Merit-based assistance, usually in the form of scholarships or grants,
is given to students who meet requirements not related to financial needs.
For example, a merit scholarship may be given to a student who has done well
in high school or one who displays artistic or athletic talent. Most
merit-based aid is awarded on the basis of academic performance or potential.

* Need-based Financial Aid

"Need-based" means that the amount of aid a student can
receive depends on the cost of the college and on his or her family's ability
to pay these costs. Most financial aid is need-based and is available to
qualified students.

What are the most common sources of financial aid?

Student financial aid is available from a number of sources, including
the Federal Government, State governments, colleges and universities, and
other organisations. Students can receive aid from more than one source.

* Federal Financial Assistance

The Federal Government supplies the largest amount of all student aid,
about 75 percent or $20 billion annually. The largest and most popular
Federal student aid programs are:

-- Federal Pell Grants

These are need-based grants that will be given to over 4 million
students for school year 1992-93. In school year 1992-93, the maximum Pell
Grant will be $2,400.

-- Federal Stafford Loans

Starting in October 1992 there will be two Stafford loan programs-one
need-based program and another non-need-based. In 1992 approximately 4
million students will receive Stafford Loans.

Under the need-based program, the Federal Government pays interest on
the loan while the student is in school and the student starts paying back
the loan and the interest after graduation.

Under the non-need-based loan program, the interest accrues while the
student is in school. After graduation the student must pay back the loan and
the interest on the loan, including the interest that accrued while the
student was in school.

Under the Stafford loan programs, the combined loan limits are $2625
for the first year, $3500 for the second year, $5500 for the third or more
years. An undergraduate cannot borrow more than a total of $23,000.

In addition to Federal Stafford Loans for students, two other Federal
loan programs are available through which students or their parents can
borrow funds to attend school.

-- Federal Campus-Based Programs

The Federal Government also provides money to colleges to give to needy
students. There are three Campus-Based programs--a grant program
(Supplemental Educational Opportunity Grants or SEOGs), a loan program
(Perkins Loans), and the College Work-Study Program.

Students can get aid from more than one Federal program. For the most
up-to-date information about student aid supplied by the Federal Government,
call the Federal Student Financial Aid Information Centre toll-free at the
U.S. Department of Education at 1-800-4FED-AID. You can also obtain a guide
to Federal financial aid for students, called The Student Guide, which
provides an extensive and updated discussion of all Federal student aid
programs. You can obtain the Guide by writing to the following address:

Federal Student Aid Information Centre P.O. Box 84 Washington, D.C.
20044

Call: 1-800-4FED-AID

* State Financial Assistance

States generally give portions of State budgets to public colleges and
universities. This support lowers tuition for all students attending these
schools. Some States also offer financial assistance directly to individual
students, which can be need-based or merit-based. To find out about State aid
where you live, call or write your State's higher education agency. The phone
numbers and addresses of all of these agencies are listed in the last section
of this handbook.

* College/University Assistance

Colleges themselves provide aid to many of their students. Most of this
"institutional aid" is in the form of scholarships or grants. Some
is need-based and some is merit-based.

When your child wants financial aid information about specific schools,
he or she should contact the financial aid offices of these schools and
request information.

* Other Types of Assistance

Other organisations, such as corporations, labour unions, professional
associations, religious organisations, and credit unions, sometimes award
financial aid. You can find out about the availability of such scholarships
by contacting someone from the specific organisation or by directly
contacting its main headquarters.

In addition, some organisations, particularly foundations, offer
scholarships to minorities, women, and disabled students. To learn more about
such scholarships, go to the nearest public library with a good reference
section and look for directories that list such scholarships. (The names of a
few books that list scholarships appear in the last section of this
handbook.) College admissions offices and high school guidance counsellors
should also be able to provide more information about scholarships.

* Help in Getting More Information

The guidance counsellors at your child's high school should be able to
provide information on when and how to apply for Federal, State, and other
types of aid. If they cannot give you this information, try a local college.
Even if your child doesn't plan to attend that particular institution,
financial aid officers there should have information on Federal financial
aid. Many colleges can also tell you about State aid and their own
institutional aid.

Is my child eligible for financial aid? If so, how much?

To qualify for Federal aid, you or your child must submit a financial
aid application. Applications for financial aid request information about
your family's income, savings, and assets, as well as information on the
number of children in the family who are in college. You can get a copy of
the Federal financial aid form by calling the toll-free number that was
mentioned earlier: 1-800-4FED-AID.

To apply for other aid in addition to Federal aid, you may need
additional forms. High school guidance counsellors can tell you more about
applying for financial aid, including where to get forms you might need for
State aid.

From information you report on the financial aid forms, your expected
family contribution (EFC) is calculated. The EFC is the amount of money a
student and his or her family are expected to contribute to the costs of
attending college. Using the EFC and other information that you provide, each
college to which you apply will determine your financial need. Financial need
equals the cost of education minus the EFC and represents the maximum amount
of need-based aid the student can receive. In addition, students can borrow
money to cover the EFC.

Because financial aid determinations consider both financial need and
education costs, you should not rule out a school because you think it costs
too much. In fact, with financial aid it may cost no more to attend an
expensive institution than a cheaper one. Chart 9 below summarises the simple
calculation that is performed to determine financial need.

CHART 9

How Much Need-Based Financial Aid Can My Child Get?

The amount of need-based financial aid a student qualifies for depends
on his or her financial need. Financial need is equal to the cost of
education (estimated costs for college attendance and basic living expenses)
minus the family contribution (the amount a student's family is expected to
pay, which varies according to the family's financial resources).

Expected
Cost of    Family    Financial
Education    Contribution    Needs

Includes costs
of

Tuition     Students can receive
Fees    Based on the financial up to this amount of
Room    - resources of a student = need-based financial
Board    and his or her family aid, such as Pell
Books Supplies    Grants and Stafford
Transportation    Loans.

To give you a better idea of how you can finance your child's college
education, examples of two college students' financial aid packages are shown
below. Note that these financial aid packages are Just examples of the kinds
of packages that students with these profiles would receive if they attended
the schools described below.

PROFILE 1 -- FIRST STUDENT

I. Student's Background

Family Income ....................................$12,000
Family Size.............................................4
Number of Family Members in College ....................1

II. Characteristics of the College That Student Would Like To Attend
and Student's Financial Aid Package at That College

A. A 2-Year Public College. Total cost of attending this college comes
to $4,000.*

Student's Financial Aid Package at This College:

Total Cost of Education ..........................$4,000
Expected Family Contribution (EFC) Parents............$0
Student**(from summer job savings) .................$700

Financial Need....................................$3,300

For this student, the total cost of education is $4,000. When you
subtract the EFC, the financial need is $3,300. Therefore, the financial aid
package below was offered to the student.

Example of Financial Aid Package:

Financial Need....................................$3,300

Pell Grant.........................................2,400
SEOG***..............................................400
State Aid............................................500

Total Financial Aid ..............................$3,300

B. A 4-Year Public College. Total cost of attending this institution
comes to $6,500.*

Student's Financial Aid Package at This College:

Total Cost of Education ..........................$6,500
Expected Family Contribution (EFC) Parents............$0
Student** (from summer job savings) ...............$ 700

Financial Need....................................$5,800

For this student, the total cost of education is $6,500. When you
subtract the EFC, the financial need is $5,800. Therefore, the financial aid
package below was offered to the student.

Example of Financial Aid Package:

Financial Need....................................$5,800

Pell Grant.........................................2,400
SEOG***..............................................600
Work-Study...........................................800
Perkins Loan****...................................1,000
State Aid..........................................1,000

Total Financial Aid ..............................$5,800

C. A 4-Year Private College. Total cost of attending this institution
comes to $15,200.*

Student's Financial Aid Package at This College:

Total Cost of Education .........................$15,200
Expected Family Contribution (EFC) Parents............$0
Student** (from summer job savings) ...............$ 700

Financial Need ..................................$14,500

For this student, the total cost of education is $15,200. When you
subtract the EFC, the financial need is $14,500. Therefore, the financial aid
package below was offered to the student.

Example of Financial Aid Package:

Financial Need ..................................$14,500

Pell Grant.........................................2,400
SEOG***............................................1,000
Work-Study.........................................1,200
Perkins Loan****...................................1,000
Stafford Loan......................................1,500
State Aid..........................................1,400
Institutional Aid..................................6,000

Total Financial Aid .............................$14,500

PROFILE 2 -- SECOND STUDENT

I. Student's Background

Family Income .........................................$32,000
Family Size..................................................4
Number of Family Members in College ........................ 1

II. Characteristics of the College That Student Would Like To Attend
and Student's Financial Aid Package at That College

A. A 2-Year Public College. Total cost of attending this college comes
to $4,000.*

Student's Financial Aid Package at This College:

Total Cost of Education ..........................$4,000
Expected Family Contribution (EFC) Parents........$1,500
Student** (from summer job savings) ...............$ 700

Financial Need ...................................$1,800

For this student, the total cost of education is $4,000. When you
subtract the EFC, the financial need is $1,800. Therefore, the financial aid
package below was offered to the student.

Example of Financial Aid Package:

Financial Need ...................................$1,800

Pell Grant...........................................700
SEOG*** .............................................500
Work-Study...........................................600

Total Financial Aid ..............................$1,800

B. A 4-Year Public College. Total cost of attending this institution
comes to $6,500.*

Student's Financial Aid Package at This College:

Total Cost of Education ..........................$6,500
Expected Family Contribution (EFC) Parents .......$1,500
Student** (from summer job savings) ...............$ 700

Financial Need ...................................$4,300

For this student, the total cost of education is $6,500. When you
subtract the EFC, the financial need is $4,300. Therefore, the following
financial aid package was offered to the student.

Example of Financial Aid Package:

Financial Need ...................................$4,300

Pell Grant ...........................................700
SEOG***...............................................600
Work-Study..........................................1,400
Stafford Loan.......................................1,000
State Aid.............................................600

Total Financial Aid ...............................$4,300

C. A 4-Year Private College. Total cost of attending this institution
comes to $15,200.*

Student's Financial Aid Package at This College:

Total Cost of Education .........................$15,200
Expected Family Contribution (EFC) Parents .......$1,500
Student** (from summer job savings) ................$700

Financial Need ..................................$13,000

For this student, the total cost of education is $15,200.* When you
subtract the EFC, the financial need is $13,000. Therefore, the financial aid
package below was offered to the student.

Example of Financial Aid Package:

Financial Need ..................................$13,000

Pell Grant............................................700
SEOG***.............................................1,200
Work-Study..........................................1,500
Perkins Loan****....................................2,000
Stafford Loan.......................................2,500
State Aid.............................................800
Institutional Aid...................................4,300

Total Financial Aid ..............................$13,000

* This "total cost" includes tuition, fees, room, board,
books, supplies, and transportation.

** The student worked during two summer vacations while in high school
and saved $700 for college.

*** An SEOG is a Supplemental Educational Opportunity Grant--which is a
Federal award that helps undergraduates

with financial need, and is awarded by the school.

**** A Perkins Loan is a low-interest Federal loan for undergraduates
and graduate students with financial need, and is awarded by the school.

Are there other ways to keep the cost of college down?

Enrol in a Two-Year College; Then Transfer to a Four-Year College

Local community colleges are usually the least expensive. In addition
to charging low tuition, they are located in the area in which the student
lives, which makes it possible to save by living at home and commuting to
campus.

After completing an associate's degree or certificate in a two-year
college, students often can transfer to a four-year college and work toward a
bachelor's degree.

If your child chooses this route, he or she needs to take courses in
the two-year college that will count toward a bachelor's degree. Certain
community college courses may not be transferable to a four-year institution.
Community college admissions officers can explain transfer terms and
opportunities.

Work Part Time

Some students choose to work part time and attend college part time. If
your child wishes to do this, he or she should make sure that work, classes,
and time for studying do not conflict. Some institutions offer programs that
enable students to combine work and classes. Although going to school part
time is a good option for many students, it usually takes longer for
part-time students to earn their degrees.

Take Advantage of Armed Forces Education Programs

All of the ways to get post secondary educational training through the
Armed Forces are shown in Chart 10 below. The armed forces offer educational
programs during or after active duty. If your child prefers to work toward a
college degree immediately after high school, attending one of the military
academies or attending a civilian school and enrolling in the

[Graphic Omitted]

Reserve Officers Training Corps (ROTC) program are options. If your
child wants to join the armed forces before attending college full time, he
or she can attend college after military service by taking advantage of the
Montgomery GI Bill or by obtaining college credit for some of the military
training he or she will receive.

* Military Academies

Each branch of the military, with the exception of the Marine Corps,
has its own academy--a four-year college that offers a bachelor's degree and
a commission in the military upon graduation. The military academies are
highly competitive and are tuition-free to students who are admitted. The
three main military academies are:

(1) U.S. Military Academy, located in West Point, New York;

(2) U.S. Naval Academy, located in Annapolis, Maryland; and

(3) U.S. Air Force Academy, located in Colorado Springs, Colorado.

* ROTC

In the ROTC scholarship program, the military covers the cost of
tuition, fees, and textbooks and also provides a monthly allowance.
Scholarship recipients participate in summer training while in college and
fulfill a service commitment after college.

* The Montgomery GI Bill

This bill provides financial support for people who wish to pursue a
college education after serving in the military.

* Other Ways To Get a College Education in the Armed Forces

Most branches of the military offer some kind of tuition assistance
program that enables members to take college courses at civilian colleges
during their off-duty hours while on active duty. In addition, military
training while on active duty can sometimes count toward college credit. All
branches of the military offer training in various technical and vocational
areas, and military enrolees can often obtain college credit for some of this
training.

Local armed forces recruiting offices can provide detailed information
about education opportunities through the military.

How do I set up a long-range plan?

Step by step, you can help your child make informed decisions about his
or her education, do well academically, learn about colleges, and find the
best possible opportunities for a college education.

Following are two checklists that are designed to help you and your
child, year by year, progress toward preparing for college--both academically
and financially. The first list speaks directly to your child, although he or
she may need your help. The second list speaks directly to you.

College Preparation Checklist for Students

PRE-HIGH SCHOOL:

* Take challenging classes in English, mathematics, science, history,
geography, and a foreign language.

* Develop strong study skills.

* Start thinking about which high school classes will best prepare you
for college.

* If you have an opportunity to choose among high schools, or among
different programs within one high school, investigate the options and
determine which ones will help you --

further your academic and career interests and

open doors to many future options.

* Investigate different ways to save money--buying a U.S. Savings Bond
or opening a savings account in a bank, etc.

* Start saving for college if you haven't already.

HIGH SCHOOL:

8th GRADE

* Take challenging classes in English, mathematics, science, history,
geography, and a foreign language.

* Get to know your career counsel or or guidance counsel or, and other
college resources available in your school.

* Talk to adults in a variety of professions to determine what they
like and dislike about their jobs and what kind of education is needed for
each kind of job.

* Continue to save for college.

10TH GRADE

* Take challenging classes in English, mathematics, science, history,
geography, and a foreign language.

* Talk to adults in a variety of professions to determine what they
like and dislike about their jobs, and what kind of education is needed for
each kind of job.

* Become involved in school- or community- based extracurricular
(before or after school) activities that interest you and/or enable you to
explore career interests.

* Meet with your career counsel or or guidance counsel or to discuss
colleges and their requirements.

* Take the Preliminary Scholastic Aptitude Test/National Merit
Scholarship Qualifying Test (PSAT/NMSQT). You must register early. If you
have difficulty paying the registration fee, see your guidance counsel or
about getting a fee waiver.

* Take advantage of opportunities to visit colleges and talk to
students.

* Continue to save for college.

11TH GRADE

* Take challenging classes in English, mathematics, science, history,
geography, and a foreign language.

* Meet with your career counsel or or guidance counsel or to discuss
colleges and their requirements.

* Continue involvement in school- or community-based extracurricular
activities.

* Decide which colleges most interest you. Write these schools to
request information and an application for admission. Be sure to ask about
special admissions requirements, financial aid, and deadlines.

* Talk to college representatives at college fairs.

* Take advantage of opportunities to visit colleges and talk to
students.

* Consider people to ask for recommendations--teachers, counsellors,
employers, etc.

* Investigate the availability of financial aid from Federal, State,
local, and private sources. Call the Student Aid Hot line at the U.S.
Department of Education (1-800-4FED-AID) for a student guide to Federal
financial aid. Talk to your guidance counsel or for more information.

* Investigate the availability of scholarships provided by
organisations such as corporations, labour unions, professional associations,
religious organisations, and credit unions.

* If applicable, go to the library and look for directories of
scholarships for women, minorities, and disabled students.

* Register for and take the Scholastic Aptitude Test (SAT), the ACT,
Achievement Tests, or any other exams required for admission to the colleges
you might want to attend. If you have difficulty paying the registration fee,
see your guidance counsel or about getting a fee waiver.

* Continue to save for college.

12TH GRADE

* Take challenging classes in English, mathematics, science, history,
geography, and a foreign language.

* Meet with your counsel or early in the year to discuss your plans.

* Complete all necessary financial aid forms. Make sure that you fill
out at least one form that can be used for Federal aid.

* Write colleges to request information and applications for admission.
Be sure to ask about financial aid, admissions requirements, and deadlines.

* If possible, visit the colleges that most interest you.

* Register for and take the Scholastic Aptitude Test (SAT), American
College Test (ACT), Achievement Tests, or any other exams required for
admission to the colleges to which you are applying. If you have difficulty
paying the registration fee, see your guidance counsel or about getting a fee
waiver.

* Prepare your application carefully. Follow the instructions, and PAY
CLOSE ATTENTION TO DEADLINES! Be sure to ask your counsel or and teachers at
least two weeks before your application deadlines to submit the necessary
documents to colleges (your transcript, letters of recommendation, etc.).

Financial Preparation Checklist for Parents

PRE-HIGH SCHOOL:

* Investigate different ways to save money--buying a U.S. Savings Bond
or opening a savings account in a bank, etc.

* Start saving money for your child's college education.

HIGH SCHOOL:

9TH GRADE

* Continue to save for college.

10TH GRADE

* Continue to save for college.

11TH GRADE

* Help your child investigate the availability of financial aid from
Federal, State, local, and private sources. Call the Student Aid Hot line at
the U.S. Department of Education (1-800-4FED-AID) for a student guide to
Federal financial aid. Have your child talk to his/her guidance counsel or
for more information.

* Help your child investigate the availability of scholarships provided
by organisations such as corporations, labour unions, professional
associations, religious organisations, and credit unions.

* If applicable, go to the library with your son or daughter and look
for directories on scholarships for women, minorities, and disabled students.

12TH GRADE

* Make sure your child completes all necessary financial aid forms. Be
sure that he or she completes at least one form that can be used for Federal
aid.

* Continue to save for college.

What terms do I need to understand?

Below is a glossary of some terms that you may want to remember:

A.A.: This stands for an "associate of arts" degree, which
can be earned at most two-year colleges.

A.A.S.: This refers to an "associate of applied science"
degree, which can be earned at some two-year colleges.

Achievement Test: Achievement Tests are offered in many areas of study
including English, mathematics, many sciences, history, and foreign
languages. Some colleges require students to take one or more Achievement
Tests when they apply for admission. Write to the address on page 41 of this
handbook for more information about such tests.

ACT: This is a test published by American College Testing, which
measures a student's aptitude in mathematical and verbal comprehension and
problem solving. Many colleges in the South and Midwest require students to
take this test and submit their test scores when they apply for admission.
Some colleges accept this test or the SAT. (See below for explanation of
SAT.) Most students take the ACT or the SAT during their junior or senior
year of high school.

B.A. or B.S.: B.A. stands for "bachelor of arts," and B.S.
stands for "bachelor of science." Both degrees can be earned at
four-year colleges. Some colleges only grant B.A.s and others only grant
B.S.s--it depends on the kinds of courses offered at the particular college.

Certificates of Deposit: See chaff beginning on page 22.

Default Rate: The default rate is the percentage of students who took
out Federal student loans to help pay their expenses but did not repay them
properly.

Dividends: Dividends are payments of part of a company's earnings to
people who hold stock in the company.

Expected Family Contribution (EFC): An amount, determined by a formula
that is specified by law, that indicates how much of a family's financial
resources should be available to help pay for school. Factors such as taxable
and non-taxable income, assets (such as savings and checking accounts), and
benefits (for example, unemployment or Social Security) are all considered in
this calculation. The EFC is used in determining eligibility for Federal
need-based aid.

Fees: These are charges that cover costs not associated with the
student's course load, such as costs of some athletic activities, clubs, and
special events.

Financial Aid: Financial aid in this handbook refers to money available
from various sources to help students pay for college.

Financial Aid Package: The total amount of financial aid a student
receives. Federal and non-Federal aid such as grants, loans, or work-study
are combined in a "package" to help meet the student's need. Using
available resources to give each student the best possible package of aid is
one of the major responsibilities of a school's financial aid administrator.

Financial Need: In the context of student financial aid, financial need
is equal to the cost of education (estimated costs for college attendance and
basic living expenses) minus the expected family contribution (the amount a
student's family is expected to pay, which varies according to the family's
financial resources).

General Educational Development (GED) Certificate: The certificate
students receive if they have passed a high school equivalency test. Students
who don't have a high school diploma but who have a GED will still qualify
for Federal student aid.

Grant: A grant is a sum of money given to a student for the purposes of
paying at least pad of the cost of college. A grant does not have to be
repaid.

Individual Corporate Bonds or Stocks: See chapter beginning on page 22.

Interest: This refers to the amount that your money earns when it is
kept in a savings instrument.

Investment: In this handbook, an investment refers to using your money
to invest in something that will enable you to earn interest or dividends over
time.

Liquidity: A term that refers to how quickly you can gain access to
money that you invest or deposit in some kind of savings instrument.

Loan: A loan is a type of financial aid that is available to students
and to the parents of students. An education loan must be repaid. In many
cases, however, payments do not begin until the student finishes school.

Merit-based Financial Aid: This kind of financial aid is given to
students who meet requirements not related to financial needs. Most
merit-based aid is awarded on the basis of academic performance or potential
and is given in the form of scholarships or grants.

Money Market Accounts/Money Market Mutual Funds:

Need-based Financial Aid: This kind of financial aid is given to
students who are determined to be in financial need of assistance based on
their income and assets and their families' income and assets, as well as
some other factors.

Open Admissions: This term means that a college admits most or all
students who apply to the school. At some colleges it means that anyone who
has a high school diploma or a GED can enrol. At other schools it means that
anyone over 18 can enrol. "Open admissions," therefore, can mean
slightly different things at different schools.

Pell Grants: These are Federal need-based grants that will be given to
over 4 million students for school year 1992-93. In school year 1992-93, the
maximum Pell Grant will be

Perkins Loan: This is a Federal financial aid program that consists of
low-interest loans for undergraduates and graduate students with financial
need, and is awarded by the school.

Post secondary: This term means "after high school" and
refers to all programs for high school graduates, including programs at two-
and four-year colleges and vocational and technical schools.

Principal: This refers to the face value or the amount of money you
place in a savings instrument on which interest is earned.

Proprietary: This is a term used to describe post secondary schools
that are private and are legally permitted to make a profit. Most proprietary
schools offer technical and vocational courses.

PSAT/NMSQT: This stands for the Preliminary Scholastic Aptitude
Test/National Merit Scholarship Qualifying Test, a practice test that helps
students prepare for the Scholastic Aptitude Test (SAT). The PSAT is usually
administered to tenth or eleventh grade students. Although colleges do not
see a student's PSAT/NMSQT score, a student who does very well on this test
and who meets many other academic performance criteria may qualify for the
National Merit Scholarship Program.

Return: Return refers to the amount of money you earn through a
financial investment or savings instrument. You earn money on investments and
savings instruments through interest earnings or dividends.

Risk: In reference to saving money or investing money, risk refers to
the danger that the money you set aside in some kind of savings plan or
investment could be worth less in the future.

ROTC: This stands for Reserve Officers Training Corps program, which is
a scholarship program wherein the military covers the cost of tuition, fees,
and textbooks and also provides a monthly allowance. Scholarship recipients
participate in summer training while in college and fulfil a service
commitment after college.

SAT: This stands for the Scholastic Aptitude Test, which is a test that
measures a student's aptitude in mathematical and verbal comprehension and
problem solving. Many colleges in the East and West require students to take
the SAT and to submit their test scores when they apply for admission. Some
colleges accept this test or the ACT. (See above for an explanation of the
ACT.) Most students take the SAT or the ACT during their junior or senior
year of high school.

Savings Accounts: See chart beginning on page 22.

Savings Instrument: In this document, savings instrument refers to any
kind of savings plan or mechanism you can use to save money over time.
Examples of savings instruments discussed in this handbook are savings
accounts, certificates of deposit (CDs), and money market accounts.

Scholarship: A scholarship is a sum of money given to a student for the
purposes of paying at least part of the cost of college. Scholarships can be
awarded to students based on students' academic achievements or on many other
factors.

SEOG (Supplemental Educational Opportunity Grant): This is a Federal
award that helps undergraduates with financial need, and is awarded by the
school. The SEOG does not have to be paid back.

Stafford Loans: These are student loans offered by the Federal
Government. Starting in October 1992, there will be two Stafford Loan
programs -- one need-based program and another non-need-based. Under the
Stafford Loan program, students can borrow money to attend school and the
Federal Government will guarantee the loan in case of default: Under the
Stafford Loan programs, the combined loan limits are $2625 for the first
year, $3500 for the second year, $5500 for the third or more years. An
undergraduate cannot borrow more than a total of $23,000.

Transcript: This is a list of all the courses a student has taken with
the grades that the student earned in each course. A college will often
require a student to submit his or her high school transcript when the
student applies for admission to the college.

Tuition: This is the amount of money that colleges charge for classroom
and other instruction and use of some facilities such as libraries. Tuition
can range from a few hundred dollars per year to more than $18,000. A few
colleges do not charge any tuition.

U.S. Government Securities: See chapter beginning on page 22.

U.S. Savings Bonds: See chapter beginning on page 22.

Work-Study Programs: These programs are offered by many colleges. They
allow students to work pad time during the school year as part of their
financial aid package. The jobs are usually on campus and the money earned is
used to pay for tuition or other college charges.

Where can I get more information on the topics discussed in this handbook?

In this section you will find phone numbers, addresses, and books that
you can use to get more information about planning for college both
financially and academically. You should be able to find most of these books
and others like them at your local library.

The following publications and organisations represent a partial list
of such sources of information. Their placement on this list does not
constitute an endorsement by the U.S. Department of Education.

Books About Occupations and Careers

(1) The Occupational Outlook Handbook, 1992-93 Edition. U.S. Department
of Labour, Bureau of Labour Statistics, 1992.

(2) Careers for the '90s: Everything You Need To Know to Find the Right
Career. Research and Education Association, 1991.

(3) The College Board Guide to Jobs and Career Planning, Joyce Slayton
Mitchell. The College Board, 1990.

Books About Choosing a College

(1) The College Handbook, 1992. The College Board, 1991.

(2) Peterson's Guide to Four-Year Colleges, 1993, Twenty-Third Edition.
Peterson's Guides, Inc., 1992.

(3) Barron's Profiles of American Colleges, Nineteenth Edition.
Barron's Educational Series, Inc., 1992.

Information About Taking Standardised Tests

(1) The Scholastic Aptitude Test (SAT) and the Achievement Tests. Write
or call:

The College Board/ATP P.O. Box 6200 Princeton, NJ 08541

Phone: 609-771-7600

(2) The ACT. Write or call:

ACT Registration P.O. Box 414 Iowa City, IA 52243

Phone: 319-337-1270

(3) The Preliminary Scholastic Aptitude Test/ National Merit
Scholarship Qualifying Test (PSAT/NMSQT). Write or call:

PSAT/NMSQT P.O. Box 24700 Oakland, CA 94632-1700

Phone: 609-683-0449 or 510-653-5595

Books About Preparing for Standardised Tests

(1) Barron's How To Prepare for the Preliminary Scholastic Aptitude
Test/National Merit Scholarship Qualifying Test, Seventh Edition, Samuel
Brownstein, Mitchel Weiner, and Sharon Welner Green. Barron's Educational
Series, Inc., 1989.

(2) Barron's How to Prepare for the Scholastic Aptitude Test, Sixteenth
Edition, Samuel C. Brownstein, Mitchel Welner, and Sharon Welner Green.
Barron's Educational Series, Inc., 1991.

(3) Cracking the SAT and the PSAT, 1993 Edition, Adam Robinson and John
Katzman. The Princeton Review, 1992.

Books About Financing Your Child's Education

(1) How To Pay For Your Children's College Education, Gerald Krefetz.
The College Board, 1988.

(2) Meeting College Costs. The College Board, 1991. (booklet)

(3) College Financial Aid, Fourth Edition. College Research Group of
Concord, Massachusetts, and John Schwartz. Arco Publishing, a Division of
Simon and Schuster, Inc., 1991.

Information About U.S. Savings Bonds

Write to:

Office of Public Affairs U.S. Savings Bonds Division Washington, DC
20226

Information About Federal Student Financial Aid

Request The Student Guide by writing to:

Federal Student Aid Information Centre P.O. Box 84 Washington, DC 20044

Call the Federal Student Financial Aid Information Centre toll-free at
1-800-4FED-AID.

Books About Private Sources of Financial Aid

(1) Foundation Grants to Individuals, Seventh Edition. The Foundation
Centre, 1991.

(2) The A's and B's Of Academic Scholarships, Deborah L. Klein, Editor.
Octameron Associates, 1992.

(3) The Scholarship Book, Third Edition, Daniel J. Cassidy and Michael
J. Alves. Prentice Hall, Inc., 1990.

Information About Opportunities in Each State

For Information about State financial aid and colleges and universities
in specific States, contact the agencies listed below. They can provide you
with other contacts in the State for more information.

ALABAMA

Executive Director Commission on Higher Education One Court Square,
#221 Montgomery, Alabama 36197-3584 (205) 269-2700 FAX: 240-3349

ALASKA

Executive Director Alaska Post secondary Education Commission P.O. Box
110505 Juneau, Alaska 99811-0505 (907) 465-2962 FAX: 586-4002

President University of Alaska System 202 Butrovich Building Fairbanks,
Alaska 99775-5560 (907) 474-7311 FAX: 474-7570

ARIZONA

Executive Director Arizona Board of Regents 2020 North Central, Suite
230 Phoenix, Arizona 85012 (602) 229-2500 FAX: 229-2555

ARKANSAS

Director Department of Higher Education 114 East Capitol Little Rock,
Arkansas 72201 (501) 324-9300 FAX: 324-9308

CALIFORNIA

Executive Director California Post secondary Education Commission 1303
J Street, 5th Floor Sacramento, California 95814-2983 (916) 445-1000 FAX:
327-4417

California Student Aid Commission 1515 "S" Street North
Building, Suite 500 P.O. Box 510845 Sacramento, California 94245-0845 (916)
445-0880

COLORADO

Executive Director Commission on Higher Education 1300 Broadway, 2nd
Floor Denver, Colorado 80203 (303) 866-4034 FAX: 860-9750

CONNECTICUT

Commissioner of Higher Education Department of Higher Education 61
Woodland Street Hartford, Connecticut 06105 (203) 566-5766 FAX: 566-7865

DELAWARE

Executive Director Delaware Higher Education Commission 820 French
Street Wilmington, Delaware 19801 (302) 577-3240 FAX: 577-3862

DISTRICT OF COLUMBIA

Chief Office of Post secondary Education Research and Assistance 2100
M. L. King Jr. Avenue, #401 Washington, D.C. 20020 (202) 727-3685

FLORIDA

Executive Director Post secondary Education Planning Commission Florida
Education Centre Collins Building Tallahassee, Florida 32399 (904) 488-7894
FAX: 922-5388

Office of Student Financial Assistance Florida Department of Education
Florida Education Centre, Suite 1344 Tallahassee, Florida 32399-0400 (904)
488-1034

GEORGIA

Chancellor Board of Regents University System of Georgia 244 Washington
Street, S.W. Atlanta, Georgia 30334 (404) 656-22O4 FAX: 651-9301

Georgia Student Finance Commission 2082 East Exchange Place, Suite 200
Tucker, Georgia 30084 (404) 493-5402

HAWAII

President University of Hawaii System 2444 Dole Street Honolulu, Hawaii
96822 (808) 956-8213

Hawaii State Post secondary Education Commission 2444 Dole Street
Honolulu, Hawaii 96822 (808) 956-8213

IDAHO

Executive Director for Higher Education State Board of Education 650
West State Street, #307 Boise, Idaho 83720 (208) 334-2270 FAX: 334-2632

ILLINOIS

Executive Director Board of Higher Education 500 Relsch Building 4 West
Old Capital Square Springfield, Illinois 62701 (217) 782-2551 FAX: 782-8548

Illinois Student Assistance Commission Executive Offices 500 West
Monroe Street, Third Floor Springfield, Illinois 62704 (217) 782-6767

INDIANA

Commissioner for Higher Education Commission for Higher Education 101
West Ohio Street, Suite 550 Indianapolis, Indiana 46204-1909 (317) 232-1900
FAX: 232-1899

State Student Assistance Commission of Indiana 964 North Pennsylvania
Street Indianapolis, Indiana 46204 (317) 232-2350

IOWA

Executive Director State Board of Regents Old State Historical Building
East 12th & Grand Des Moines, Iowa 50319 (515) 281-3934 FAX: 281-6420

Iowa College Student Aid Commission 201 Jeweft Building 914 Grand
Avenue Des Moines, Iowa 50309 (515) 281-3501

KANSAS

Executive Director Kansas Board of Regents 400 SW 8th Street, #609
Topeka, Kansas 66603 (913) 296-3421 FAX: 296-0983

KENTUCKY

Executive Director Council on Higher Education W. Frankfort Office
Complex 1050 U.S. 127 South Frankfort, Kentucky 40601 (502) 564-3553 FAX:
564-2063

Kentucky Higher Education Assistance Authority 1050 U.S. 127 South,
Suite 102 Frankfort, Kentucky 40601 (502) 564-7990

LOUISIANA

Commissioner Board of Regents 150 Riverside Mall, Suite 129 Baton
Rouge, Louisiana 70801-1303 (504) 342-4253 FAX: 342-9318

Office of Student Financial Assistance, Louisiana Student Financial
Assistance Commission P.O. Box 91202 Baton Rouge, Louisiana 70821-9202 (504)
922-1011

MAINE

Chancellor University of Maine System 107 Maine Avenue Bangor, Maine
04401-1805 (207) 947-0336 FAX: 947-0336 x293

Financial Authority of Maine, Maine Education Assistance Division One
Weston Court State House, Station 119 Augusta, Maine 04333 (207) 289-2183

MARYLAND

Secretary of Higher Education Maryland Higher Education Commission 16
Francis Street Annapolis, Maryland 21401 (410) 974-2971 FAX: 974-5376

MASSACHUSETTS

Chancellor Higher Education Coordinating Council 1 Ashburton Place,
Room 1401 Boston, Massachusetts 02108-1530 (617) 727-7785 FAX: 727-6397

Massachusetts State Scholarship Office 330 Stuart Street Boston,
Massachusetts 02 116 (617) 727-9420

MICHIGAN

Associate Superintendent for Post secondary Education State Department
of Education P.O. Box 30008 Lansing, Michigan 48909 (517) 335-4933 FAX:
335-4565

Michigan Higher Education Assistance Authority P.O. Box 30008 Lansing,
Michigan 48909 (517) 373-3394

MINNESOTA

Executive Director Higher Education Coordinating Board 550 Cedar
Street, #400 St. Paul, Minnesota 55101 (612) 296-9665 FAX: 296-3272

MISSISSIPPI

Commissioner Board of Trustees of State Institutions of Higher Learning
3825 Ridgewood Road Jackson, Mississippi 39211 (601) 982-6611 FAX: 987-4172

MISSOURI

Commissioner of Higher Education Coordinating Board for Higher
Education 101 Adams Street Jefferson City, Missouri 65101 (314) 751-2361 FAX:
751-6635

MONTANA

Commissioner of Higher Education Montana University System 33 South
Last Chance Gulch Helena, Montana 59620 (406) 444-6570 FAX: 444-7729

NEBRASKA

Executive Director Coordinating Commission for Post secondary Education
6th Floor, State Capitol P.O. Box 95005 Lincoln, Nebraska 68509 (402)
471-2847 FAX: 471-2886

NEVADA

Chancellor University of Nevada System 2601 Enterprise Road Reno,
Nevada 89512 (702) 784-4901 FAX: 784-1127

Nevada Department of Education 400 West King Street, Capitol Complex
Carson City, Nevada 89710 (702) 687-5915

NEW HAMPSHIRE

Executive Director New Hampshire Post secondary Education Commission
Two Industrial Park Drive Concord, New Hampshire 03301-8512 (603) 271-2555

Chancellor University System of New Hampshire Dunlap Centre Durham, New
Hampshire 03824-3563 (603) 868-1800 FAX: 868-2756

NEW JERSEY

New Jersey Department of Higher Education Office of Student Assistance
and Information Systems 4 Quakerbridge Plaza, CN 540 Trenton, New Jersey
08625 1-800-792-8670

NEW MEXICO

Executive Director Commission on Higher Education 1068 Cerrillos Road
Santa Fe, New Mexico 87501-4295 (505) 827-7383 FAX: 827-7392

NEW YORK

Commissioner for Higher and Continuing Education Room 5B28 Cultural
Education Centre New York State Education Department Albany, New York 12230
(518) 474-5851 FAX: 486-2175

The New York State Higher Education Services Corporation 99 Washington
Ave. Albany, New York 12255 (518) 473-0431

NORTH CAROLINA

Vice President for Planning University of North Carolina General
Administration P.O. Box 2688 Chapel Hill, North Carolina 27515-2688 (919)
962-6981 FAX: 962-0488

North Carolina State Education Assistance Authority (NCSEAA) P.O. Box
2688 Chapel Hill, North Carolina 27515-2688 (919) 549-8614

College Foundation, Inc. 2100 Yonkers Road Raleigh, North Carolina
27604 (919) 821-4771

NORTH DAKOTA

Chancellor North Dakota University System State Capitol Building
Bismarck, North Dakota 58505 (701) 224-2960 FAX: 224-2961

OHIO

Chancellor Ohio Board of Regents 30 East Broad Street, 36th Floor
Columbus, Ohio 4326-0417 (614) 466-0887 FAX: 466-5866

OKLAHOMA

Chancellor State Regents for Higher Education 500 Education Building
State Capitol Complex Oklahoma City, Oklahoma 73105 (405) 524-9100 FAX:
524-9235

OREGON

Chancellor State System of Higher Education P.O. Box 3175 Eugene,
Oregon 97403-1075 (503) 346-5700 FAX: 346-5764

Oregon State Scholarship Commission 1445 Willamette Street Eugene,
Oregon 97401 (503) 346-4166

PENNSYLVANIA

Commissioner for Higher Education State Department of Education 333
Market Street Harrisburg, Pennsylvania 17126 (717) 787-5041 FAX: 783-5420

Pennsylvania Higher Education Assistance Agency 660 Boas Street
Harrisburg, Pennsylvania 17102 (717) 257-2500

PUERTO RICO

Executive Director Council on Higher Education Box 23305, UPR Station
San Juan, Puerto Rico 00931 (809) 758-3350 FAX: 763-6760

RHODE ISLAND

Commissioner of Higher Education Office of Higher Education 301
Promenade Street Providence, Rhode Island 02908 (401) 277-6560 FAX: 277-6111

Rhode Island Higher Education Assistance Authority 560 Jefferson
Boulevard Warwick, Rhode Island 02886 (401) 277-2050

SOUTH CAROLINA

Commissioner Commission on Higher Education 1333 Main Street, Suite 300
Columbia, South Carolina 29201 (803) 253-6260 FAX: 253-6267

South Carolina Higher Education Tuition Grants Commission 1310 Lady
Street P.O. Box 12159 Columbia, South Carolina 29211 (803) 734-1200

SOUTH DAKOTA

Executive Director Board of Regents 207 East Capitol Avenue Pierre,
South Dakota 57501-3159 (605) 773-3455 FAX: 773-5320

Department of Education and Cultural Affairs, Office of the Secretary
700 Governors Drive Pierre, South Dakota 57501-2291 (605) 773-3134

TENNESSEE

Executive Director Tennessee Higher Education Commission 404 James
Robertson Parkway Parkway Towers, Suite 1900 Nashville, Tennessee 37219-5380
(615) 741-7562 FAX: 741-6230

Tennessee Student Assistance Corporation Parkway Towers, Suite 1950 404
James Robertson Parkway Nashville, Tennessee 37243-0820 (615) 741-1346

TEXAS

Commissioner Texas Higher Education Coordinating Board P.O. Box 12788,
Capitol Station Austin, Texas 78711 (512) 483-6101 FAX: 483-6127

Texas Higher Education Coordinating Board P.O. Box 12788, Capitol
Station Austin, Texas 78711 (512) 483-6340

UTAH

Commissioner of Higher Education Utah System of Higher Education 355
West North Temple 3 Triad Centre, Suite 550 Salt Lake City, Utah 84181-1205
(801) 538-5247 FAX: 521-6930

VERMONT

Vermont Student Assistance Corporation P.O. Box 2000, Champlain Mill
Winooski, Vermont 05404-2601 (802) 655-9602

Chancellor Vermont State Colleges P.O. Box 359 Waterbury, Vermont 05676
(802) 241-2520 FAX: 244-1746

President University of Vermont 85 South Prospect Street Burlington,
Vermont 05401 (802) 656-3186 FAX: 656-8432

VIRGINIA

Director State Council of Higher Education 101 North 14th Street
Richmond, Virginia 23219 (804) 225-2600 FAX: 225-2604

WASHINGTON

Executive Director Higher Education Coordinating Board 917 Lakeridge
Way, GV-11 Olympia, Washington 98504 (206) 753-3241 FAX: 753-1784

WEST VIRGINIA

Chancellor State College System of West Virginia 1018 Kanawha
Boulevard, East, Suite 700 Charleston, West Virginia 25301 (304) 348-0699
FAX: 348-0259

Chancellor University of West Virginia System 1018 Kanawha Boulevard,
East, Suite 700 Charleston, West Virginia 25301 (304) 558-2736 FAX: 558-3264

WISCONSIN

Higher Educational Aids Board P.O. Box 7885 Madison, Wisconsin 53707
(608) 267-2206

President University of Wisconsin System 1700 Van Hise Hall 1220 Linden
Drive Madison, Wisconsin 53706 (608) 262-2321 FAX: 263-2046

WYOMING

The Community College Commission 122 West 25th Street Herschler
Building, 2W Cheyenne, WY 82002 (307) 777-7763

President University of Wyoming Box 3434 University Station Laramie, WY
82071 (307) 766-4121

This handbook was written by Elizabeth
Eisner and Valentina K. Tikoff, under the direction of Alan Ginsburg, Bruno
V. Manno, and Maureen A. McLaughlin. Barbara Gleason, Daniel Goldenberg,
David Goodwin, Dan Morrissey, Susan W. Wolf, and Steven W. Zwillinger also
contributed to the project.

------------ END ------------

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