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According to a recent study by
The College Board,
the median annual income for bachelor's
degree recipients is 80
percent higher than median
income for those with only a high
school diploma.
However, tuition and fees at
private colleges jumped an average
of 5.8% last year, and can now
top $40,000 a year at big-name
schools if you include living
costs. Public colleges —
hurt by state budget cutbacks
— raised prices an average
of 9.6% according to the same
study. Beyond that, it is estimated
children born today could face
college costs that are three to
four times current prices.
A good rule of thumb:
Parents should aim to
save one-third of the expected
college costs, pay one-third from
current income and financial
aid during college, and borrow
one-third, according to Mark Kantrowitz,
publisher of Finaid.org,
a financial aid Web site.
Choosing
a College-Savings Plan
There's no single college-savings
plan perfect for every
family. Deciding where
to invest will largely depend
on your income, the age of your
child, and your chances of qualifying
for financial aid.
It is important to keep financial
aid in mind from the beginning
because where you invest can have
an impact on your aid eligibility.
But be careful not to fall into
the trap of not saving at all
in order to qualify for aid. Financial
aid is determined more by income
than by accumulated assets, and
investments held in a student's
name typically reduce financial
aid more than assets held in a
parent's name.
Education Funding
Analysis
Getting
started is easy. Contact the Education
Loan Center, and a
PNC Investments Financial Consultant
will conduct an Education Funding Analysis
that can help determine your child
or grandchild's education funding needs.
Together, you can create a savings
and investment strategy designed
to meet your needs.
Learn More About:
Call us at 800-PNC-6111
to schedule an appointment to
discuss your investment needs.
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Important Investor Information:
Securities and brokerage services are provided by
PNC Investments, a division of J.J.B. Hilliard,
W.L. Lyons, Inc. member NYSE and SIPC. Annuities
and other insurance products are offered by PNC
Insurance Services, Inc. and J.J.B. Hilliard, W.L.
Lyons, Inc., licensed insurance agencies.
