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COLLEGEWEEKLIVE OHIO DAY- FREE ONLINE COLLEGE FAIR

0 COMMENTS | Judy Cunningham | September 14, 2011

The Ohio Tuition Trust Authority has partnered with CollegeWeekLive to bring you the second annual CollegeWeekLive Ohio Day, a one-day online college fair Wednesday, October 5, 2011.  Participants and families will have the opportunity to chat live with admissions representatives for information about attending college in Ohio.  They will also have a chance to interact with students currently enrolled in participating schools and watch keynote presentations on CollegeAdvantage and from the Board of Regents on admission, saving for college, financial aid options and employment.

Students or parents interesting in attending CollegeWeekLive Ohio Day should visit CollegeWeekLive and register for free up through the day of the event, October 5.

To learn more, visit: http://bit.ly/rgYvRP

 

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• COLLEGEADVANTAGE CLOSED ON MAY 27

  by Ohio Tuition Trust Authority | May 24, 2013

  The Ohio Tuition Trust Authority will be closed on Monday, May 27, 2013 for the Memorial Day holiday. Please be aware that processing times will be extended due to the observance of this holiday.

• Tell us your story!

  by Ohio Tuition Trust Authority | Apr 03, 2013

  CollegeAdvantage knows that each account owner has a story. There are reasons you opened a CollegeAdvantage account or two and we want to hear them.

  We’re preparing a series of videos over the next few months to showcase savers just like you, and you and your family could be featured in one of them! You just have to be committed to saving for college and willing to talk about how and why you’re doing so. Your story doesn’t have to be unique – we’re looking for all ages, family sizes, and income levels.

  Your story can help others who are thinking about opening a CollegeAdvantage account or who may be struggling to contribute regularly to their current accounts. We’ll ask you to share your savings tips, as well as the hopes and dreams you have for your future college grads. . . and the hopes and dreams they have for themselves.

  Maybe you make contributions each pay, or once a month, or contribute the maximum amount once a year. Maybe grandparents or aunts and uncles contribute to your child’s account. Whatever your story, we want to hear it. 

  If you are willing to share your story and perhaps appear in a video or other promotion, please send us a few lines about you, your family, and why you are saving. Include your contact information, too, and send to Judy Cunningham at jcunningham@collegeadvantage.com.

  Thanks for being part of the CollegeAdvantage family.

  
  

  Go comment!

• Student Loans Are Not a Qualified Expense

  by Ohio Tuition Trust Authority | Mar 12, 2013

  We often receive questions from account owners who ask if their 529 funds can be used to pay down a beneficiary’s student loans. The short answer is “no,” and we will explain why.

  Withdrawals you make from your child’s CollegeAdvantage account are tax-free as long as the funds are used to pay qualified higher education expenses. The definition of “qualified” as determined by the Internal Revenue Code 529 includes tuition, room and board, books and supplies, and mandatory fees (those invoiced through the school). Off-campus housing expenses may also be covered, if the beneficiary is enrolled at least half time, although it is limited to comparable on-campus housing.

  A student loan is not considered to be a qualifying expense even though some would argue that loans represent the qualified expenses a student incurred in the past. But that is not the case. The IRS requires that you withdraw 529 funds in the same year an expense is incurred, and payment of a student loan does not qualify.

  If you withdraw your 529 funds to pay against a student loan, you will be both taxed and penalized an additional 10% on your earnings. The same thing would happen if you were to pay the beneficiary’s college expenses as you go (not using the 529 funds), and request reimbursement of the expenses after the beneficiary graduates. When you pay back a student loan, that’s essentially what you’re doing. Unfortunately, payment of student loans is not allowed per the IRS 529 laws.

  
  

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• A Gift from the Heart

  by Ohio Tuition Trust Authority | Feb 13, 2013

  As you buy cards and candy hearts for your child this Valentine’s Day, don’t forget to say “I love you” with the sweetest gift of all: education. For as little as $25, you can make a contribution to your CollegeAdvantage account that will warm your child’s heart forever.

  Regular contributions to a CollegeAdvantage account really add up. Say you contribute monthly to an investment option that averages 6% growth. Here’s how your savings can grow.

  Monthly Amount	5 Years	10 Years	15 Years
  $50	$3,488.50	$8,193.97	$14,540.94
  $100	$6,977.00	$16,387.93	$29,081.87
  $200	$13,954.01	$32,775.87	$58,163.74

  The assets in the account belong to you, not your child, and will have little effect on your child’s eligibility for financial aid. Under federal guidelines, only 5.64% of your CollegeAdvantage account is counted as estimated family contribution. In the hypothetical example above, that’s $3,280 on an account valued at $58,163.74. And the account owner who has contributed $200 monthly for 15 years, or $36,000, has earnings of $22,163.74.

  There’s no income ceiling for owning a CollegeAdvantage account. And the account is available to you right away. After a seven-day hold on contributions, you can withdraw the funds at any time. If you’re an Ohio taxpayer, you can deduct up to $2,000 in contributions from your state taxes, regardless of the length of time those funds stay in your account.

  It’s never too late to save. Your child’s already in high school? So start now. You can save for a student of any age—even one (maybe it’s you!) who returns to college in middle age.

  No matter when you start, and no matter the size of your contribution, every dollar you save is a dollar that will sweeten your child’s future.

  Go comment!

• OTTA Director Elected to National Association Board

  by Ohio Tuition Trust Authority | Jan 03, 2013
  We’re proud to announce the election of OTTA Executive Director Paul Paeglis to the Executive Board of the College Savings Plans Network (CSPN), the national association for Section 529 college savings plans. Paul was elected by his peers from across the country to serve a two-year term on the Board of CSPN, an affiliate of the National Association of State Treasurers (NAST). 
  
  The Network, founded in 1991 to make higher education more attainable, monitors federal activities, promotes legislation affecting 529 savings programs and serves as a conduit for professional staff across the nation to share innovations and experiences. 
  
  Paul came to OTTA last January, bringing more than 20 years of experience in banking and financial services,  including 10 years as Chief Financial Officer of Tax Related Products at JP Morgan Chase. 
  
  Congratulations, Paul!

• CollegeAdvantage 529: the gift that keeps on giving

  by Ohio Tuition Trust Authority | Nov 29, 2012
  Thinking about the perfect gift to give that special child for the holidays? The Ohio Tuition Trust Authority is encouraging families to think about the gift of education with a CollegeAdvantage 529 plan. CollegeAdvantage is the perfect gift for a child … guaranteed to last a lifetime, and no batteries required!
  
  Opening or adding to a CollegeAdvantage account is a simple and affordable idea for the holidays that is sure to please everyone in a child’s family, including the gift-giver. Rated one of the best 529 plans in the country by Morningstar, Inc., CollegeAdvantage offers tax advantages and quality investment options and can be used at any college in the country.
  
  CollegeAdvantage is the one gift that lets both the giver and receiver win! Ohioans who contribute to a CollegeAdvantage 529 account by December 31 can deduct the contribution from their 2012 state of Ohio income taxes. Up to $2,000 can be deducted each year, per beneficiary, until it is all deducted.
  
  The tax deduction is not limited to parents. Deductions can be claimed by anyone who contributes to a CollegeAdvantage account: grandparents, other family members and friends. So, this holiday season, invite your family and friends to give your children the gift of education. Go to the Forms page of our website and click on “Online Request Form” to request holiday gift cards to pass along to anyone who wants to give the gift that keeps on giving.
  
  Go comment!

• Nine years among the best in the country

  by Ohio Tuition Trust Authority | Oct 18, 2012
  For the ninth straight year, Ohio’s CollegeAdvantage 529 direct plan has received high honors from Morningstar, Inc., a leading provider of independent investment research of 529 college savings plans. In awarding CollegeAdvantage a Silver rating, Morningstar ranked us among the top eight plans in the country. Morningstar’s report highlighted our mix of managers and investment styles as a nice variety of options for college savers at a fair price.
  
  In a departure from the past, Morningstar based its rankings this year on a Five Pillar system, similar to the way it ranks mutual funds.
  
  • People: Are the managers and researcher directing the plan’s investments skilled and well supported?
  • Process: Are the age-based options based on solid research and implanted well? Are the strategies sensible and past successes likely to be repeated?
  • Parent: Is the program manager a good caretaker of college saver’s capital? Is the state managing the plan professionally?
  • Performance: Has the plan delivered strong risk-adjusted performance, and will it continue?
  • Price: Are the investment options a good value, and do state tax benefits defray costs?
  
  The new ratings system ranks 529 plans as Gold, Silver, Bronze, Neutral or Negative. CollegeAdvantage’s Silver rating indicates a plan with many industry best practices.
  
  Of the 64 plans Morningstar reviewed, CollegeAdvantage was among those rated as likely to outperform their peers on a risk-adjusted basis. Four plans were rated as Gold, four as Silver, and 19 as Bronze. Over half of all plans, including Ohio’s BlackRock CollegeAdvantage 529 advisor plan, were given a Neutral rating. College savers who choose a Neutral‐rated plan should expect market‐like returns, which is a reasonable outcome according to Morningstar. The BlackRock plan is available exclusively through financial advisors for families looking for professional investment advice and service.
  
  Go comment!

• It's College Savings Month

  by Ohio Tuition Trust Authority | Sep 12, 2012

  The start of every school year puts your child one year closer to college. When it’s time to pack the car instead of the backpack, will you be ready to pay for your child’s education?

  It’s no accident that national College Savings Month coincides with the opening of the school year. What better time to start your college savings year? Saving for college while the kids are still young will help you plan a path to your children’s success and reduce the need for student loans. Every dollar you save now is a dollar less out of your pocket when you get the tuition bill.

  One of the best ways to save is with a CollegeAdvantage 529 account. Low costs and a varied portfolio consistently place CollegeAdvantage among the top 529 plans in the country, according to Morningstar’s annual survey. You don’t have to be an experienced investor—those same varied investment options make it easy for you. You pay no taxes on earnings you use for college expenses. And if you’re an Ohio taxpayer, you can take a deduction of up to $2,000 for every account you contribute to. It’s a great opportunity for you and for relatives and friends who want to contribute to your children’s education.

  In fact, it’s a great way to get the kids involved in planning for their own education. Encourage your children to contribute to their CollegeAdvantage account. Even if it’s only small amounts from allowance, babysitting or an after-school job, those contributions will add up. And they’ll remind children of their goal to attend college. Three-quarters of students and parents in the Sallie Mae study “How America Pays for College 2012” agreed that they should share college expenses. Last year, the average student, through savings and income, paid 12% of the costs.  

  Not only does that ease the burden for you, it exponentially increases the odds the student will go to school. Research by the Center for Social Development finds that youth who designate a portion of their savings for college are four times more likely to attend college than those who don’t. That number jumps to seven if they have their own account to contribute to.  

  Have a kid? Start a CollegeAdvantage account. Watch how quickly both grow.

  Go comment!

• Caps Off to CollegeAdvantage

  by Ohio Tuition Trust Authority | Jun 28, 2012
  For several years, CollegeAdvantage has been on Morningstar’s list of the best 529 plans in the country. Morningstar isn’t the only one that ranks us so highly. Savingforcollege.com recently updated its 5-Cap Ratings system to make it easy to compare plans. CollegeAdvantage’s Direct Plan rates a perfect 10.
  
  Savings programs are scored in four areas:
  • Performance. Scores come from Savingforcollege.com’s quarterly best-to-worst rankings.
  • Costs. Total average asset-based expense ratios among plans are compared, as are program management and administrative fees. Plans are penalized for investment options that other plans offer for less.
  • Features. Plans earn points for features such as investment options that vary in risk, FDIC-insured options, purchase rewards and the ability to replace underlying funds.
  • Reliability. Plans are assessed on such considerations as experienced outside program managers, documentation quality, flexibility, rollover procedures and state due diligence.
  
  Ratings:
  • 5 Caps. A strong plan with flexible, attractive investments and additional benefits, such as state tax incentives
  • 4 Caps. An excellent plan that has a few weak spots
  • 3 Caps. A plan that’s good but has concerns you should know about
  • 2 Caps. A plan that works great for some people but has a more limited audience
  • 1 Cap. A plan that has problems to fix before it’s truly competitive
  • 0 Caps. A plan that is outmatched in every area by similar programs
  
  Each 529 plan receives two ratings: one for state residents, one for nonresidents. CollegeAdvantage rates 5 Caps on both scales.
  
  
  Go comment!

• Academic Calendar Conversion

  by Jim Petro, Chancellor, Ohio Board of Regents | May 30, 2012
  By the fall of 2012, all Ohio's public universities and colleges will be converted to an academic calendar based on the semester system creating several efficiencies both for individual institutions, for the University System of Ohio, and for students.

  A typical semester is approximately 15 weeks of instruction as compared to about 10 weeks of instruction in a typical quarter term. Schools converting from quarters to semesters will go from three quarters to two semesters. Many colleges offer summer terms in addition to the standard semester or quarter terms.

  By agreeing to a common academic calendar, the institutions of higher learning have made it possible for students to experience some savings and made it easier for Ohio students to transfer credit between institutions increasing student mobility and student success.

  In 2010-11, nearly 43,000 students transferred credit within the University System of Ohio while 12,500 earned credit simultaneously at less expensive institutions resulting in a savings totaling $46.1 million for students and their families.

  A universal calendar, along with tools like the Ohio Transfer Module, Transfer Assurance Guides and Career Technical Credit Transfer initiatives, provides students a greater opportunity for mobility between colleges and universities helping them maximize opportunities and potentially save even more money. Students may also experience savings in text book purchases for non-sequential types of courses that would require a new text each term.

  Another benefit of the conversion was a review of courses. To ensure all Ohio Transfer Module (OTM) and Transfer Assurance Guide (TAG) courses meet the high quality and rigor that Ohioans expect, submissions made under a quarter calendar were resubmitted to show how they had been configured under a semester calendar. OTM and TAG courses have the state-wide transfer guarantee. This provided an opportunity for converting colleges to revamp and upgrade some of their courses.

  Faculty across the state and Articulation and Transfer staff worked together for many years to ensure all statewide guarantee transfer courses are reviewed, approved and correctly entered in to the Ohio Board of Regent’s system to allow for efficient student transfers.

  To aid in the conversion process, campus staff had online access to the Articulation and Transfer calendar conversion processes, each institution's calendar conversion pages, course catalog, and calendar conversion contacts, the draft of the General Education Guidelines, and the Course Equivalency Crosswalk.

  17 of Ohio's colleges and universities are converting to semester calendars beginning with the 2012-2013 academic year. They are:

  • Belmont College
  • Central Ohio Technical College
  • Cincinnati State Technical & Community College
  • Clark State Community College
  • Columbus State Community College
  • Hocking College
  • Marion Technical College
  • North Central State College
  • The Ohio State University
  • Ohio University
  • Rhodes State College
  • Sinclair Community College
  • Southern State Community College
  • University of Cincinnati
  • Washington State Community College
  • Wright State University
  • Zane State College
  Go comment!

• The Importance of College Completion

  by Jim Petro | May 14, 2012

  In our country's highly competitive and unpredictable global economy, the only certainty is that the jobs of tomorrow will flow to communities, states, and nations with the educated populations qualified to fill them. There is a clear and well-documented connection between education and economic development. Thus, the role of the Ohio Board of Regents and the University System of Ohio is critical to the economic future of Ohio. The economic growth of Ohio is certainly dependent on higher education.

   Ohio's proportion of adults with bachelor's degrees in the workforce, sadly, remains in the bottom quarter of the states, typically six percentage points below the national average. This must change, and strategies to improve on this statistic are set forth in this plan.

   The mission of the University System of Ohio is to increase the percentage of Ohioans with degrees – all degrees – whether one-year certificates, two-year, or four-year degrees. This can be best accomplished by embracing strategies that advance degree completion like "expanding effective articulation and transfer credit programs," such as the program at Zane State College.

   The fact is, less than half of the students who enter our public colleges and universities actually complete a program which grants them a credential of value or degree. We must achieve a much higher rate of certificate and degree completion.

   A student cannot enhance their employment prospects by listing courses or semesters completed on their resume. When they leave college after multiple semesters of study without a certificate or a degree they have wasted their money and the state's money. It is an economic loss and a loss of human potential that must be stopped.

   Our focus must be ensuring students complete their education by earning applicable certificates, degrees or other credentials which demonstrate they are qualified to fill the jobs of today and tomorrow.

  Go comment!

• Is College Worth the Expense? Absolutely!

  by Ohio Tuition Trust Authority | May 11, 2012

  Forty to fifty years ago, a high school diploma was often sufficient to find a job that paid enough to raise a family. Back then, the U.S. economy was based on manufacturing. In the knowledge-based economy of today, it takes a bachelor’s degree to get a job with the earnings potential of a high school diploma a generation or so ago.

  But book-learning is just the beginning of the value of college. Higher education provides the mental skills to process knowledge. It opens the mind to new ideas and teaches the skills to analyze and debate them. College is a place to learn financial and social independence, especially for students who live away from home and must learn to get along with a diverse group of people. The college experience engenders tolerance, cooperation and even diplomacy. And the college years are a time to take in new experiences and begin to plan for the future.

  During college, you’ll likely start relationships that could well boost your entire career. Many student friendships last a lifetime. And graduates, as they go on to higher positions, often continue to have an affinity for their alma mater and fellow graduates.

  In such tenuous times for financial assistance, we’re all concerned about the rising costs of education. Despite the price tag, a college degree is a key to increased earnings; the median income for college graduates is about 75% higher than for high school graduates. Quite simply, a college education offers you more opportunities and a wider net to cast to find them.

  The way to minimize college expenses is not to forego the idea of higher education but to be realistic about where you go to school. Does it have to be a prestigious private university where you will build up hundreds of thousands in debts? Possibly, if you’re going into a highly specialized field that will give you the earnings potential to pay back your loans. If you’re going into a field that offers a number of university programs to choose among, you might want to consider a state school where you can graduate with an excellent education and lower debt.

  
  

  Go comment!

• Ohio's One-Stop College Shop

  by Ohio Tuition Trust Authority | Mar 22, 2012
  What’s your career goal? Not sure? Go to www.ohiohighered.org for career-planning information and exercises.
  
  Where can you find college money for your children? And how much will college cost anyway? Go to www.ohiohighered.org for a college cost estimator, information on types of financial aid, and profiles and costs of colleges across the country.
  
  And that’s not all. The Ohio Board of Regents and the University System of Ohio created www.ohiohighered.org to help Ohioans prepare for college and career choices. The “Students” tab has information on everything from a college planning timeline to what you need to apply to how to find an internship.
  
  Have you heard about Ohio’s 3-Year Degree Plan? Read all about it. Need licensure information for immigrants with health care credentials from another country? That’s there too. Veterans services? Adult literacy? Distance learning? Workforce retraining? Yes, yes, yes and yes. 
  
  www.ohiohighered.org is a one-stop information shop for everything education.
  Go comment!

• Say Hello to Our New Director

  by Ohio Tuition Trust Authority | Feb 10, 2012

  The Ohio Tuition Trust Authority welcomes Paul Paeglis as our new Executive Director. Paul brings more than 20 years of experience in the banking and financial services industry, with skills in finance, risk management, operations, strategic planning and relationship management. Most recently, he served for more than 10 years as Chief Financial Officer of Tax Related Products at JPMorgan Chase.

  His well-rounded financial background is exactly what the Ohio Board of Regents was looking for in a manager for the investments, promotion and operations of the Tuition Trust and our CollegeAdvantage 529 plan. With $6.5 billion invested, CollegeAdvantage is one of the largest 529 plans in the country and is consistently rated as among the best by leading financial analysts at Morningstar Inc. and savingforcollege.com. During the past several months, as the Board sought the ideal candidate, past Board member Richard Norman served as interim director.

  Paul is passionate about our mission to provide high-quality savings programs to help families prepare financially for their children’s higher education. And with two school-age children of his own, he understands the challenge. “We need to be managed as a business,” he says. “What attracted me to the position was the mission of what this organization does. You have to have passion for what it does. I had that at Chase, but I was ready for a change. I believe this is a place where I can find that passion again.”

  “Mr. Paeglis’ experience and expertise will further the growth and development of Ohio’s 529 plan and mobilize more families to save for college,” said Chas Withers, Executive Committee Chair of the Tuition Trust Board. “The Board looks forward to working with Paul to advance the strategic direction of the agency.” 

  Paul was quick to jump in and learn about the agency. He’s impressed with what he sees. Families know they get a fair deal with both our direct plan and our advisor plan, he says. And BlackRock, which manages our advisor plan, is a strong partner we can leverage throughout the country. 

  With so much competition for the family dollar, we have to make it easy and enticing for families to save for college, Paul says. “We have a good plan. We have good investment options. And no one who ever sent a child to college ever wished they’d saved less to send them.”

  Go comment!

• It’s Time to Complete the FAFSA!

  by Ohio Tuition Trust Authority | Jan 23, 2012

   

  Your CollegeAdvantage account puts you ahead of the game in saving for your child’s education. But if you have a college-age child, you should also fill out the FAFSA, the Free Application for Federal Student Aid, to see if your child is eligible for federal financial aid, such as a Pell Grant, Stafford Loan, Perkins Loan or work-study program. Most need-based university and private institutional loans, grants and scholarships also depend on the FAFSA.

  The federal deadline for the FAFSA is June 30 each year for the upcoming school year­—June 30, 2012, for the 2012-2013 school year. But states and schools may have their own deadlines, so be sure to check with the schools your child is interested in. And the earlier you fill out the FAFSA, the better off you are: financial aid is offered on a first-come, first-served basis.

  You can submit the FAFSA on paper or online, at www.fafsa.ed.gov. You’ll have to fill it out every year, so do it online if possible, to provide yourself a shortcut in subsequent years to information you’re submitting now. And the online form coaches you along with Help and Hints boxes on each page.

  Before you start the process, you need a Federal Student Aid PIN, which not only provides access to your records but also serves as your electronic signature. To apply for a PIN, go to www.pin.ed.gov. Store it in a safe place, and never give it out, even to agencies that offer help in filling out the FAFSA. You’ll use the same PIN every year.

  In addition to the PIN, you need the following information for both parents and student:

  • Social security number
  • Driver’s license, if you have one
  • 2011 tax return
  • Bank statements
  • Investment account statements in your name

  Parents also need to provide information on any untaxed income they might have.

  If you haven’t yet filed your 2011 taxes, don’t worry. You can estimate your income and update later. The deadline for corrections is September 15.

  As its name suggests, the FAFSA is always free. Be wary of any website or organization that offers assistance for a fee. If you need help filling out the form, look for a website or agency that will provide it at no cost. There are plenty of them out there. For the most pertinent information, start with the financial aid office at the college your child attends or is interested in.

  For more information please go to http://students.ohiohighered.org/paying/FAFSA.

  Go comment!

• New Year’s Resolution: Finish College

  by Jim Petro | Jan 05, 2012

  If your New Year’s Resolution is more about fattening your wallet than thinning your waistline, then I have a suggestion for you.  Put ‘Finish College’ at the top of your 2012 New Year’s Resolution list.

  According to the U.S. Census Bureau, people who have earned an associate’s degree will earn approximately $5,000 more annually than those with only a high school diploma. Bachelor’s degree holders earn almost $20,000 more per year than those with only a high school diploma.

  Right now, there are several thousand well-paying jobs available in Ohio that continue to be unfilled because the potential workforce does not have the education they need to qualify for those positions.

  The Ohio Board of Regents and the University System of Ohio can provide the support needed to help you keep your resolution and finish college.

  The Forever Buckeyes program immediately extends in-state resident tuition rate to any Ohio high school graduate who left the state but returns to enroll in an Ohio College. Ohio high school graduates are always welcome to attend college in Ohio.

  The state also has a robust credit transfer system. This means many courses and programs taken at one Ohio public institution will be recognized as equivalent credit at other Ohio public institutions. So even if you don’t live near the college you attended 20 years ago, you can enroll in a college that is closer to where you are located now and complete your degree. In 2010 and 2011, more than 40,000 students transferred within the University System of Ohio and saved an estimated $46.1 million by completing credit at a lower cost institution.

  Every course and every certificate is a building block in attaining career or technical certificate, an associate’s and baccalaureate degree. The ability to transfer credit from one college to another enables students to follow diverse paths to attain their degree.

  Career-Technical Credit Transfer (CT²)is another helpful program. It allows high school and adult career-technical students who successfully complete technical programs to receive college credit.

  If you haven’t started college yet, now is the time. The Ohio Board of Regents can help with that too. Starting in 2012, public colleges and universities in Ohio are required to offer three-year degree plans for 10 percent of their programs. That number will grow to 60 percent in 2014.

  A three-year degree also will help students complete their college education.  A shortened time-frame to obtain a degree, in addition to the savings, will help students avoid or clear some of the hurdles they may encounter.

  Completing your college education is a good resolution to put on your list. Keeping that resolution could help you accomplish some of those other resolutions, too, like “find a better job,” “earn more money,” “get organized,” “get out of debt,” “enjoy life more,” and “learn something new.”

   

  Jim Petro is the Chancellor of the Ohio Board of Regents.  The Chancellor, with the advice of the nine-member Board of Regents, provides policy guidance to the Governor and the Ohio General Assembly, advocates for the University System of Ohio and carries out state higher education policy. For more information, visit www.ohiohighered.org.

  Go comment!

• Conditions for 529 Plans 'Near Perfect'

  by Joe Hurley, Savingforcollege.com | Dec 08, 2011

  Citing “near-perfect” conditions, Savingforcollege.com, an independent source of 529-plan data, publications, and ratings since 1999, has released a list of six reasons why the current environment is especially good for parents, grandparents, and financial advisors to consider or recommend 529 plans for college savings.

  “While we recognize that many families are dealing with multiple financial challenges alongside economic uncertainty and market volatility, the argument for setting aside money now in 529 plans is stronger than ever,” says Joe Hurley, founder of Savingforcollege.com. “Most parents who make the commitment will, we believe, be glad they did so when they look back years from now.”

  The six reasons why Savingforcollege.com finds conditions are right for 529 plans are as follows:

  1. If economic conditions improve over time, as many expect, there is a very good chance that investments made now in age-appropriate portfolios will in fact keep pace with future tuition increases at many schools.

  2. The top tax rates are slated to move higher. Within the next two years, many parents may see their taxes on interest, dividends, and capital gains increase by a substantial amount, making the benefits of a tax-advantaged 529 plan even more compelling.

  3. With student loans becoming more expensive and state aid dwindling, 529 plans become even more critical in financing a college degree. The fact that 529 plans have certain advantages in the federal financial-aid formula will end up helping families who use 529 plans instead of taxable investments.

  4. In spite of their budget problems, no states have cut back on their deductions for contributions to a 529 plan. How long will this situation last? Parents may want to take advantage of their state-level benefits while they still exist.

  5. The IRS may soon impose new restrictions on 529 plans to police against the possibility of tax abuse. Accounts opened now may possibly be exempted from certain restrictions under “grandfathering” rules.

  6. With all the uncertainty surrounding estate and gift taxes, high net worth individuals have a unique opportunity to hedge their bets with 529 plans. Contributions to a 529 plan are removed from one’s gross estate, yet remain under the contributor’s full control. The high contribution limits in 529 plans, coupled with the temporary $5 million lifetime gifting exemption, can lead to a significant reduction in estate tax exposure.

  Savingforcollege.com, the recognized independent authority on Section 529 college savings plans, is owned and operated by Pittsford, NY-based JFH Innovative LLC.

   

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• Students to Benefit from Change to Semesters

  by E. Gordon Gee, President, The Ohio State University | Nov 29, 2011

  Change at a university as large and complex as Ohio State is never easy. But it is vital to our success and to the success of our students. Never has this fact been more apparent than in the case of our academic calendar conversion from quarters to semesters.

  For 90 years, The Ohio State University operated on a four-quarter system and it worked efficiently. Then came the 21st century. It became obvious to many of us— students, faculty, staff and administrators—that a semester-based system was in our best interests. Yes, change would be difficult. It would be messy, problematic and time consuming. It would also be one of the most important steps ever taken by the university.

  When I returned as president of the university in 2007, one of my goals was to put the students first initiative in place. One of the best ways we could do that was to adopt a semester system, in a carefully planned and thoughtfully executed manner that would provide the most benefits with the least disruption. I believe we have accomplished exactly that, as summer 2012 will usher in our new academic calendar. We are continuing to impress upon our current students the importance of meeting with their academic counselors to ensure a smooth transition. Students and parents should know that the conversion will not impact the cost of attending the university nor the length of time it will take to graduate.

  The benefits of the semester conversion are significant. Students will now be on a level playing field with their counterparts at other major universities across the country and with other Ohio institutions. They will have opportunities for earlier summer internships and job openings after their May graduation. Students will also find it easier to transfer their academic credits. The learning experience will also be enhanced. A 14-week study period will allow students to explore subjects in more depth than the former 10-week calendar allowed. And our special four-week May session will expand opportunities for service learning, cross-disciplinary seminars and study abroad.

  Our faculty has stepped up to reconfigure and reimagine course content in ways that allowed them to take a fresh, forward-thinking approach to student learning. The resulting changes are well worth the enormous effort required, and I join our students with grateful thanks to our faculty and academic leadership. Along with our students, faculty and staff, I look forward to our semester-based future with great anticipation. As renowned author and management expert Peter Drucker noted, “The best way to predict the future is to create it.”

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• The Real Cost of College

  by Richard Norman, Interim Executive Director | Nov 25, 2011

  Exploring colleges and their costs may give you sticker shock, but don’t let that scare you off from one of the best investments you can make for your child’s future.

  The sticker price of a college education, like that of a vehicle at your local dealer, generally is not the end price. The car dealer marks up the price, knowing—expecting—that the customer will negotiate. Similarly, most students, even those from families with substantial income, do not pay the advertised price for a college education. Their “negotiations” come in the form of financial aid packages.

  So how much does tuition cost these days? Nearly half (47%) of students attend a 4-year university with published charges of less than $9,000 per year for tuition and fees. (Ohio’s average is slightly above that, at $9,508.) Private schools can run to over $50,000 a year, with the average private 4-year university hovering at $27,300. But the real sticker price varies dramatically, especially among private universities. And those universities usually have more grant aid available, which means you can get more financial help to attend those schools.

  Many students shudder at the published price of more expensive schools and don’t even try to apply because of the sticker price. But you won’t know your final cost until you apply and see what your aid package turns out to be. In 2010-11, the average amount of aid awarded to a full-time undergraduate was $12,455. More than half of that was in the form of grants, which don’t have to be repaid. Apply to the school of your choice (along with others) and let the school help determine if attendance is financially feasible.

  To make it affordable, you need to understand how the negotiating works. While the method of calculating costs may vary from college to college, the basic process is the same. It starts with two types of financial aid, merit-based and need-based. Merit-based scholarships are great if you can get them. But the bulk of financial aid is need based. It depends on your ability to pay for college and is determined with the Free Application for Federal Student Aid (FAFSA) you fill out.

  The college looks at the financial information you provide on the FAFSA to assess your Expected Family Contribution (EFC). It subtracts that figure and other financial resources, such as merit-based scholarships, from the cost of attending the school. What remains is your financial need. Colleges then put together an aid package of federally subsidized loans, grants and work-study to meet that need.

  Subsidized loans have low interest rates and accrue no interest while your child is in school. But they’re still loans, and they have to be paid back. Work study, also government funded, provides your child with a part-time job and work experience.

  Colleges don’t have unlimited funds, so make sure you’re at the front of the line to sit at that negotiating table. Negotiation season starts January 1. Try to have the FAFSA in as close to that date as possible—not just this year, but every year your child is in college. Financial negotiation is an annual event.

  Keep in mind that every dollar you save for your child is a dollar less you might have to borrow as part of your financial-need package. That’s where 529 college savings plans come in.

  Do your homework. Plan for your child’s education. Work with your child to select the right school—even if it’s one that gives you sticker shock. And then work with the school to make your child’s college dream come true.

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• Asset Allocation for College Savers

  by Richard Norman, Interim Executive Director | Nov 03, 2011

  Are the investment options you’ve selected for your child’s CollegeAdvantage account the right ones? While no one can answer that question without a crystal ball, one thing is certain – the age of your child directly correlates to which type of investments are appropriate for your family. And the recommended asset allocation for the Beneficiary of a CollegeAdvantage account changes as the Beneficiary gets older.

  If you haven’t reviewed your account’s assets in a while, now may be a good time to do so. In this economic climate, it’s more important than ever to be comfortable with the diversification of your investment options. And since federal regulations limit reallocations in 529 plans to once per calendar year per Beneficiary, if you haven’t made yours yet, you only have until the end of the year to take advantage of this opportunity for 2011.

  What is asset allocation?

  Asset allocation simply means putting your money into different kinds of assets. The major asset classes are stocks, bonds and cash. Long-term investors, such as college savers, balance market risk by spreading their money over different asset classes over the years, because market conditions affect asset classes in dissimilar ways.

  The age of the Beneficiary directly affects the suggested asset allocation of your account as you save for college. When your Beneficiary is young, you may want to invest more heavily in assets that offer the greatest growth potential over time, such as stocks. As your Beneficiary nears college age, your investment strategy may change to heavier weightings in bonds and cash in order to lower market risk and better preserve capital.

  (Note: If you are invested in a CollegeAdvantage age-based option, asset allocation adjustments are automatically done for you as your Beneficiary ages.)

  Ask yourself these questions to help decide if your current asset allocation is appropriate for your time frame and risk tolerance:

  1. How many years do you have until your Beneficiary goes to college?
  2. Do you consider yourself to be a conservative, moderate or aggressive investor?
  3. What is your overall financial situation?
  4. What is your college savings goal; how much are you trying to save?

   

  After you answer these questions, look at your current CollegeAdvantage investments to see if you’re comfortable with your portfolio, based on your Beneficiary’s age. You might want to take our Risk Tolerance Questionnaire which can help you determine what type of investor you are. Then take a look at our suggested asset allocation for college savers for your Beneficiary’s age group, based on how much risk you can tolerate.

  What if I want to change my asset allocation?

  The easiest way to change the direction of your asset allocation is simply to change where you put new contributions to your account. To start a new investment option, simply make a one-time contribution online and select the new option. Then, be sure to change any recurring contributions (EFTs and payroll deductions) to the new option. You can also change your asset allocation by making a reallocation online when you access your account, or with a Reallocation Form, found in our Forms section.

  Changing your account’s asset allocation is not rocket science, it just takes a little time to look at the options available and take action to make the change.

  The information provided here should not be interpreted as investment advice, but informative in nature about the benefits of asset allocation in managing your CollegeAdvantage account.

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