develop a savings plan

step seven

Review your plan annually. Check the performance of your investments. Keep informed about college cost projections. Make any necessary adjustments. Please note some important caveats about college financing calculations:

• The way the financial aid system works could change. This includes how EFC is determined.
• Federal and state tax laws could also change. For questions about your current individual circumstances, you should consult a qualified tax advisor. Investment results may vary.
• Even if you eventually have enough money for your total EFC, your child might leave school with substantial student loans. Loans are considered "financial aid," and schools routinely ask students to accept them as part of a financial aid package.
• Even if you have enough money for your EFC, and even if your child has taken on student loans, you could still be left with what's called "remaining need." These are the charges remaining after you've paid your EFC and the school has provided financial aid. You'll need additional aid, and loans are the most likely source of help. Your child may be asked to borrow more student loans; you as a parent can also borrow PLUS loans (Parent Loans for Undergraduate Students) up to the cost of your child's education minus financial aid.
• You can also take out a home equity loan, or tap other investments (such as life insurance or an IRA) that you might have.