Parents are expected to help pay for college for their undergraduate students. But many have not been putting aside money in a college fund along the way. With the recent dips in the housing market, taking out a second mortgage is not an option for most people. And, the stock market decline has made those savings less accessable. For parents who cannot come up with the amount of money that they are expected to pay, the PLUS loan makes a lot of sense.

A PLUS loan is a federally guaranteed loan to parents to help them assist their children in realizing their dreams for a higher education. Parents can borrow the full out of pocket costs for their child’s higher education. To figure out how much you are eligible to borrow, take the school’s cost of attendance figure (tuition plus living expenses) and subtract any financial aid in the form of scholarships, grants, and other federally backed student loans.

The average cost of attending a private school is over $40,000 when you factor in tuition, room, board, and the other costs of going to school. Public schools may be less expensive, but the total cost of attendance can still be more than a graduate’s first year salary. That is why it is important for parents to do everything they can to increase the financial aid awards for their children.

You need to fill out the FAFSA early so that you know what your family’s expected contribution will be. This will help your child choose schools that are in your price range or get outside scholarships if they want to attend a more expensive college.

Next, understand how the FAFSA works. The government considers that 20 percent of the student’s assets are available for college expenses and 5.6 percent of the parent’s assets can be used for this purpose. If your child has a lot of money in savings, consider transferring that to your accounts as that will decrease the amount that will have to go to college.

strongRecipient: /strongSmart Growth AmericabrstrongLocation: /strongWashington, DCbrstrongZIP Code: /strong20036-2542brstrongRecipient URL: /stronga href=”http://www.smartgrowthamerica.com/”www.smartgrowthamerica.com//abrstrongType of Recipient: /strongEnvironment, natural resources; Economic developmentbrstrongGrantmaker: /stronga href=”http://dynamodata.fdncenter.org/990s/990search/ffinderecon2.cgi?id=FORD010″The Ford Foundation/abrstrongGrant Amount: /strong$1,000,000brstrongYear Authorized: /strong2009brstrongDescription: /strongFor public education and advocacy to ensure that transportation funds in federal stimulus program are used wisely and equitably to improve opportunities for low-income people and people of colorbrstrongType of Support: /strongProgram developmentbrstrongSubjects: /strongEconomic crisis; Economic development; Economically disadvantaged; Environment, natural resources; Minorities; Public affairs; TransportationbrstrongRecipient EIN: /strong270038938br

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strongRecipient: /strongVisiting Nurse Association of Northwest ColoradobrstrongLocation: /strongSteamboat Springs, CObrstrongZIP Code: /strong80487-8816brstrongType of Recipient: /strongHealth care, home servicesbrstrongGrantmaker: /stronga href=”http://dynamodata.fdncenter.org/990s/990search/ffinderecon2.cgi?id=COLO004″The Colorado Trust/abrstrongGrant Amount: /strong$462,000brstrongYear Authorized: /strong2009brstrongDuration: /strong3 yearsbrstrongDescription: /strongTo help meet health needs of the uninsured and unemployedbrstrongType of Support: /strongProgram developmentbrstrongSubjects: /strongEconomic crisis; Economically disadvantaged; Health care, home servicesbrstrongRecipient EIN: /strong840564998br

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strongRecipient: /strongLa Clinica TepeyacbrstrongLocation: /strongDenver, CObrstrongZIP Code: /strong80216-2015brstrongRecipient URL: /stronga href=”http://www.clinicatepeyac.org/”www.clinicatepeyac.org//abrstrongType of Recipient: /strongHealth care, clinics/centersbrstrongGrantmaker: /stronga href=”http://dynamodata.fdncenter.org/990s/990search/ffinderecon2.cgi?id=COLO004″The Colorado Trust/abrstrongGrant Amount: /strong$430,600brstrongYear Authorized: /strong2009brstrongDuration: /strong3 yearsbrstrongDescription: /strongTo help meet health needs of the uninsured and unemployedbrstrongType of Support: /strongProgram developmentbrstrongSubjects: /strongCatholic agencies churches; Economic crisis; Economically disadvantaged; Health care, clinics/centers; Hispanics/LatinosbrstrongRecipient EIN: /strong841285505br

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