College Financial Aid For Massachusetts Residents
January 21, 2011
photo credit: guillenperez
The workforce has become very aggressive and competitive over the past couple years. This is because of the decline in the economy. This has created the need for people to improve their education in order to remain marketable. However, it is very challenging for people to pay their way through college especially with family expenses and other financial obligations. Many people across the United States of America are seeking financial aids to fund their education in order to achieve their goals. Each state has its own guidelines and availability of funding, but there is a lot of college financial aid for Massachusetts resident.
Financial aid is Government funding that is offered to United States residents to fund their education. In order for students to be eligible to receive this kind of financial assistance, they must be an American citizen or resident. In the state of Massachusetts, there are various institutions that offer financial aid to college students. The list below will give people choices in getting the necessary funding they need.
1. Massachusetts Educational Financial Aid Authority (MEFA).
2. Massachusetts Office of Student Financial Assistance.
3. Massachusetts Grant and College Financial Aid Program.
4. Massachusetts College of Arts and Design Financial Aid.
5. Tuition advantage Massachusetts community College.
These are only few options of financial aids offered by various organizations in the state. These financial programs offer great help to students as well as improving the level of education in the state. Therefore, there is dual benefit .In addition to these financial aid programs, there are government grants available as well as numerous scholarship programs. The state shows a great interest in education with its vast inventory of financial assistance.
There is a very vibrant education program in the state and residents are encouraged to take advantage of these opportunities. There is no excuse to be left behind as the state aim for professional growth and academic excellence. Financial aids take the burden off your pocket and allow you to study freely. Financial aid is a privilege and eliminates the huge expenses that are incurred on student loans.
This government funding program has decrease the amount of out of pocket expenses that students normally pay for and offer a solution to the drop out rated in college because of lack of financial assistance. This has greatly impacted the level of productivity in the state. This funding covers tuition, books, room and board.
Therefore, if you are in the state of Massachusetts and need to advance your education, financial aid is available to you. Lack of funding for school should never be an issue or impediment to thriving for success. The government has implemented ways in which to stimulate the economy through its ability to educated people.
With this opportunity, people are free to go back to school and either chose new career path or improve on their existing knowledge based knowing that the funds are being covered by the government. Therefore, there is a lot of college financial aid for Massachusetts resident.
Student / Dependent
August 9, 2010
Joe,
My daughter is entering her third year at the University of Minnesota this fall. Up until now we have been claiming her as a dependent, but I am hearing that rules for claiming a dependent are more complicated than verifying that they are your child and in school. What are the rules for this?
Percy, St. Paul
Percy,
Thanks for your question. You are absolutely right in saying that there are more qualifications to claiming someone as a dependent than they are your child and attending school. And given the soaring costs of tuition, room and board, and other “related” expenses, the ability to claim a child as a dependent come tax time is a vital wealth-management strategy.
The good news is that, unlike many IRS laws, the rules regarding dependency are relatively simple. Well, sort of.
A dependent is defined under IRS § 152(a) as either a qualifying child or a qualifying relative. Well, what is a qualifying child or relative?
To determine that, the individual must meet the qualifying general dependency test under IRS § 152(b). Namely the child must:
• Not be married. Unless, if married, the couple did not file a joint return for the past year or if the couple did file jointly, they did so only to claim a refund.
• Be a citizen, resident, or national of the United States or a resident of Canada or Mexico.
If the student in question meets the requirements of IRS § 152(b), then you move on to IRS § 152(c). That says a student must also meet these four tests:
• Relationship Test. The child must be either the taxpayer’s: child, stepchild (by blood or adoption), foster child, sibling, stepsibiling. Or a descendant of any of those.
• Age Test. The student must either be under 19 years old, or a full-time student under 24 years old. What constitutes a full-time student varies from school to school.
• Residency Test. The student must live with the taxpayer for half of the year. However, a student is considered “living with” an individual even if away due to a host of factors such as school or military service.
• Support Test. The student cannot provide more than half of college-related expenses himself.
So be careful in how much your child contributes to his education or be unable to claim your child as a dependent.
Seems simple enough, right? Well there are more complicated rules on things such as how divorced parents can claim dependencies. For those your best bet would be to contact a qualified CPA for more detailed advice.
Hope this answers some of your questions, Percy. If you have more questions feel free to give me a call and we can discuss further. Best of luck to you and your daughter.
Best,
Joe Rapacki
photo credit: chris.corwin
College Planning
June 2, 2010
Joe,
My oldest daughter is two years away from college, and my youngest is a freshman in high school. My husband and I had put some money aside over the years, but it has taken a real hit in the past two years. I want my kids to go to a good school, but I just don’t know how we can afford it. Do you have any tips?
Miranda, St. Paul
Thanks for your question. First, don’t panic. You’re in the same situation many parents find themselves in. Parents with college-ready kids are facing a perfect economic storm. First, the accounts they have spent years contributing to are taking a beating. Even families who planned ahead for their kids to attend college are seeing their accounts dwindle.Hope these tips help, Miranda. If you have further questions please don’t hesitate to contact me.
Not only are accounts dwindling, but college expenses are increasing. College tuition and living expenses rise, on average, 5-6% per year—far out pacing inflation. Colleges have become businesses who must recruit for the best students. And the things that attract students—new academic buildings, trendy student lounges, and “free” iPods and laptops all cost money. Guess who gets stuck with the bill?
But even as costs continue to skyrocket, parents continue to trot their kids off to college in record numbers. The U.S. Census Bureau notes that college attendance rose some three million students in the last six years—with 29.3 million students trotting through ivy-shrouded academic buildings and living on a diet of cold pizza for a year. Parents are OK with one less meal out a week or selling the family boat, but struggle to tell their kids they can’t attend college. And there’s a good reason for that: Most jobs now require at least an undergraduate degree—and many an advanced or specialized degree—for employment.
So what do you do?
First. Keep saving. You hear about parents who start applying to top-notch schools before their kids are born? They sound over zealous? Maybe. But start saving when your kids are young, contribute to a 529 Savings Plan.
If you want to estimate what a school will cost look at their current tuition and room and board expenses for 2010-11. Then add 5-6% for each year away from college your kid is. That means if a schools currently has a fee structure of 25,000 dollars (a mid-level state school), it will cost about 28,940 dollars by the time your current 10th grade kid attends her first year. Scared yet? That is just the first year—remember to plan on a 5-6% increase yearly.
Next, sit down and have a frank conversation about the realities of college. Too many parents fall in to the sentimental trap of giving in to whatever their kids want for college, regardless of finances. This is both dangerous and foolish. With your kid, sit down and make a list with three categories: dream schools if finances are not an issue, mid-level schools that you see as realistic, and safety-schools if your financial situation gets worse (yes, that can still happen).
Next, keep saving. Remember: 5-6% increase a year.
Here’s the secret most people don’t know: Almost no one pays the full sticker price of a college. Most schools, especially private schools, offer generous financial aid packages. The only way to find out what money your kid is eligible for is to apply to a school and see. Also, make sure to fill out the FAFSA. That is the document that will determine the amount in loans and grants your student qualifies for. There are subsidized loans and un-subsidized loans. Subsidized loans are preferable because the interest on them does not start accruing until the student is not in school full-time anymore.
In addition, here are some other general tips in funding college.
Do: Encourage academic performance. One of the most overlooked college financing options rests with your kid. Students who perform well academically and score high on the ACT/SAT are eligible for a host of scholarships—both at the school and privately. There are many private scholarships that go unawarded each year for lack of applicants. Have your student talk with his or her guidance counselor for advice where to look and apply.
Don’t: Bank on athletic scholarships. You have a better chance of winning the lottery.
Do: Consult the numerous resources that rank college. The US News and World Report and Princeton Review are two of the better ones. They rank schools by everything from academic reputation to cafeterias to value. But be advised: The term value applies to more than tuition and what the student is afforded in terms of opportunities at the college. For instance, St. Olaf and its 45,300 dollar comprehensive fee is listed as a best value.
Don’t: Take the rankings as an end all be all. There is a lot of debate amongst colleges as to the utility of such ranking services. Many schools are ranked on past numbers and, if you are cynic, on the money they contribute to the publications. Still, they are a guide.
Do: Consider all schools—both public and private. As state earlier, many private colleges, even though they carry a higher comprehensive price tag, end up being the same price or cheaper based on the private scholarships they can offer.
Don’t: Give up on a public school because it is out of state. Many states have reciprocity agreements with other states to encourage cross-state matriculation of students.
Do: Consider loans. Almost all college students have them, and their low interest rates usually make them comfortable to repay with a typical post-college job. Also, knowing that the student will be paying for the education later often makes him more invested in school while there.
Don’t: Be tempted by the low interest rates of home equity loans to finance college expenses. Yes, the interest rate is low, but home equity loans cannot go into forbearance if the student goes on to graduate school or is unable to afford the payments the way other education-related loans can.
Best,
Joe
