State Plans a/k/a 529 Plans: Anyone can open a 529 Plan in his or her own name and designate a student as beneficiary. Up to $50,000 ($100,000 jointly) may be contributed over five years to a maximum of $246,000. Funds grow tax-free and withdrawals since 2002 have been tax-free as well.

Downside: Monies contributed are not tax deductible, and there is little or no control over how funds are invested. Also, there is a 10% penalty for withdrawals not used for college, and 529 Plans can actually decrease chances for a large grant or scholarship – and that’s not all. When there are distributions from these accounts, financial aid is automatically reduced dollar for dollar! As with EIRA’s, having funds legally repositioned elsewhere, will result in no assessment whatsoever!

Retirement Plans: An IRA, HR10 (Keogh), Pension, SEP, 401(k), 403(b), 457 or any other qualified retirement plan should also be considered when saving for college. Such plans are not regarded as assets and are outside of financial aid formulas. While account value is not considered an asset, annual contribution made is added back to AGI for an income assessment! The big print giveth, but small print taketh away!

Non-Qualified Savings Plans: These are accounts strictly set up to provide funds to be used to pay for Expected Family Contribution (EFC) or any unanticipated college costs. Families need to set up these accounts as early in student’s life as possible, so there will be adequate money to pay such costs when time comes.

Remember, by time students enter high school, consideration should be given to reducing “high risk” investments. Never gamble with money that’s earmarked for education! And, never lose sight of fact that all monies saved for college in early years will not serve their purpose unless student prepares for and successfully completes admissions process.

This is one of a series of articles by college admissions and financial aid expert, Reecy Aresty, based on his book, “Getting Into College And Paying For It!” For further information or to contact him, please visit www.thecollegebook.com.

The following April, college sent out its letters of acceptance and rejection. His friends, who had all applied around same time but not online, received their notices, yet he was still waiting. Just to be on safe side, he called admissions office, but alas, it was too late! He was politely informed that there had been an unfortunate computer glitch at time he applied, and that his application was among several dozen that had been permanently lost!

Needless to say, family was devastated. How such a thing could happen, how often accidents like this occur, who or what was responsible, and all of apologies in world make absolutely no difference whatsoever – you’re still up creek without a paddle! Just learn from this and act accordingly.

Another submission problem that should be mentioned here is, if for any reason you can’t make deadline, student, not parent, must call school in advance of deadline and give a valid reason why it will be impossible to meet it. They will almost always extend it another two or three weeks. Admissions officers are not totally without compassion. However, I strongly suggest that student ask for a written or email confirmation and write down name of person who granted extension. As I have said in many of my articles – leave nothing to chance!

OK. You’ve prepared all your stuff, completed all requirements, checked and re-checked that everything is letter perfect, mailed all applications and have confirmations that everything was received by each school applied to. Take a deep breath, but don’t get too comfortable. It’s time to prepare for student interview.

This is one of a series of articles by college admissions and financial aid expert, Reecy Aresty, based on his book, “Getting Into College And Paying For It!” For further information or to contact him, please visit www.thecollegebook.com.