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How To Afford Out-of-State Tuition

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how to make out of state tuition affordable

Every parent dreams of a full-ride scholarship for their child. I, personally, have high hopes on an Ivy League education. But full-ride scholarships aren’t always realistic. And what if your child wants to attend an out-of-state college?  

Out-of-state tuition can increase your education costs by over 100%. However, some options may make out-of-state tuition more affordable. 

Here are nine options to consider to make out-of-state tuition more affordable.

Flat Rate Tuition

Look for colleges that are on a flat-rate tuition policy. Flat rate tuition does not discriminate based on where you live; the cost is the same regardless of your residency.

An example of a university that charges the same tuition for in-state and out-of-state residents is Mississippi Valley University.

Student Exchange

Similar to studying abroad for a year, some schools allow an exchange to another university, for the same cost as your home school. Generally, these are available for one-year increments. Check out the National Student Exchange for more information.

Good Neighbor Policy

Neighboring states or counties may offer reduced tuition. It’s often not advertised, so it’s worth giving the financial aid office a call to ask what kind of assistance they can offer.

Low Out-of-State Tuition

Some colleges are cheaper than others, or the gap between in-state and out-of-state tuition is more narrow. West Texas A&M University in Canyon, Texas, is an example where the difference between in-state and out-of-state is less than $1,000 per year.

Waivers

Top performing students may be eligible for a non-resident tuition waiver. There may be certain restrictions, as every state has different regulations. For example, the student may need to be studying in a particular area. East Tennessee University has waiver options if you major in History. 

Reciprocity Agreements

Similar to good neighbor schools, some states hold agreements with other states to allow residents to swap states for the sake of saving on college tuition. The Western Undergraduate Exchange is an exchange of approximately 16 states on the West Coast that allow for reduced out-of-state tuition if you attend a school in one of the participating states. Deadlines are a big deal here – so make sure you apply early.

Legacy Scholarships

Legacy scholarships may be available for alumni of many colleges.

Tuition-Free Schools

In exchange for service, many schools offer free tuition. Alice Lloyd College in Kentucky is an example. Through a student work program, students may be eligible for free tuition. More schools are listed here.

Relocate

While not the most realistic of the options, it’s worth mentioning. Massive action produces massive results. If your child has their heart set on a specific school, and you have the flexibility to move – perhaps you work remote – this may be an option. It’s crucial to review residency requirements in each state as they often have loopholes that will hinder short term moves for the sake of paying in-state tuition.

 

Do you think out-of-state tuition is out of your reach? Share your concerns in the comments below.

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Are Parents Legally Obligated To Pay For College

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Are Parents Legally Obligated To Pay For College

In August 2013, a New Jersey girl sued her parents for the cost of her college tuition. Caitlyn Ricci won that case in 2014, and the decision was upheld in court later that year. The details of the lawsuit is worthy of soap opera. Amongst which is that Ms. Ricci is estranged from her parents for failure to follow the rules laid out by her parents. While we leave the legal merits of the case up to the judges, it begs the question, are parents are legally obligated to pay for college.

This topic is particularly personal for me. We save money for our children’s college. However, I don’t necessarily plan on spending that money on college. My parents didn’t pay for my college. The education I gained from that alone was worth as much as the cost of my degree.

There is No Hard and Fast Answer

While there is no black and white answer, there are some signs that point to yes, parents are expected to contribute financially to their children’s higher education. This may not always come in the form of payment for a child’s tuition; it can be through other means of financial support, such as providing housing or transportation.

The State You Live In Matters

The case referenced above was filed in the state of New Jersey, which is a progressive state in terms of state laws that have been established which define parental requirements in terms of financial contribution towards a college education.

Each state sets its own laws, and some states such as California are on the other end of the spectrum and limit parental obligations. Overall, there is no specific requirement for parents to pay for their children’s college education in most states. However, if a parent is divorced, this may be a game-changer.

It Will Depend On The Parents Marital Status

The obligation is more strict when the parents are divorced.

When a marriage ends in divorce, and parents and children get involved, the parent with custodial rights generally receives some sort of financial contribution from the other parent. This is agreed upon as part of the divorce settlement, and higher education costs are typically included in the agreement.

Again, each state will differ – here is a breakdown of requirements by state.

The Child Must Participate In The Cost

There is an expectation that the child should make a reasonable attempt to contribute to their college education. In the case referenced above, Ms. Ricci’s parents appealed on the grounds that she did not apply for all applicable scholarships and loans. The claim was ultimately rejected in favor of the parents due to the fact Ms. Ricci was emancipated from her parents. Thus she showed intent to be independent of her parents. The court applied that independence to financial support, as well.

 

Do you think parents should be legally obligated to pay for college? Are you planning to pay for yours? Share your opinion in the comments below.

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A Guide for Building A Child Trust Fund

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Child Trust Fund Guide

A Child trust fund isn’t just for the Rockefellers and the Rothschilds of the world. They’re also for normal moms like you and me who want to leave a legacy for our children and our grandchildren.

What Is A Child Trust Fund

Trust funds are a financial tool associated with estate planning. They represent a separate legal entity that holds assets such as cash and property for the future benefit of a child.  

Three terms that are helpful to understand are:

  • Trustee – the beneficiary of the trust, or the child
  • Grantor – the person who set up the trust
  • Trustee – the person or company that manages the assets of the trust

Why Do You Need One And How Does It Differ From A Will

The primary benefits of a trust include tax savings for the grantor and asset protection for the beneficiary.

A trust allows for the distribution of funds over time for a specific event, for example, monthly distributions to pay for a grandchild’s college expenses. With a trust, this is possible before the grantor’s death. A will does not go into effect until a person dies.

With a trust, the specific conditions set by the grantor are met. Where this is different than a will, is the property passed on through a will must enter probate, which can get messy, can cause delays, and can cost extra money. A trust is done outside of the court system so that you can avoid probate.

Types of Child Trust Funds

The most popular type of Child Trust Funds falls under the term, Irrevocable Trust Funds (ITF). There are two major types of ITFs – Section 2503 (b) and Section 2503 (c).

Section 2503 (b) Minor Trust Fund – Qualifies for the annual gift tax exclusion based on current limitations. Distributions of the trust income to the child or a custodial bank account must be made on a yearly basis or more frequent basis. Access to the principal at the age of 21 is not required.

Section 2503 (c) Minor Trust Fund – Qualifies for the annual gift tax exclusion. All the money (both principal and income) in the trust must be transferred to the child at the age of 21.

How To Set One Up

There is a lot to consider when setting up a trust fund for your children. Not only are there legal and tax issues to consider, but you’ll also have emotional impact to think about. For example, you’ll need to consider the individual personalities of your children. Do you believe they will be mature enough to receive a significant distribution of assets at the age of 21? If the answer is no, you’ll want to avoid the Section 2503 (c) fund.

Seek out the counsel of a qualified estate attorney during the process of setting up your trust. Their experience with the federal and state laws will ensure you, your children, and your assets are adequately protected.  

 

Do you have any experience setting up a trust fund for your kids? Tell us about it in the comments below.

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Child Savings – More Than Money in the Bank

Best Ways To Save On College Needs

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Whether your child is off to college this year or next, you are thinking about the needs. There are a lot of things a new student needs aside from their supplies list for classes. There are tons of commercials and ads on bedding, laptops, and mini-fridges. When is the right time to buy? How do you know if you are saving money? Here are some of my recommendations.

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Free Apps And Websites To Tutor Your Child

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When a child struggles and the budget is tight, tutoring can become a frustrating ordeal. Some schools offer after-school programs that help with homework. Sometimes you can help. I have looked at several apps and websites that are helpful to tutor your child. They are all free and can be a lifesaver. Some of them are so much fun, your child might want to visit them when they don’t need tutoring.

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Giving Your Child a Homework Area

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Children do well when they have a designated spot for doing homework. The area should convey that completing assignments is important. It has everything they have nearby. It is comfortable and quiet. If your child struggles with silence, music from a radio or MP3 player is helpful. I don’t recommend television as it can become a distraction.

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4 Of The Best Free Educational Apps For Toddlers

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There are going to be moments where you are somewhere, and the toddler is in a particularly horrible mood. You will think “I just want to hand them my phone so they will be quiet” and you know it will work. Then you are inundated with those “I am a bad parent” feelings and you don’t know what to do. While we all know that too much screen time can be bad for kids, we also know that sometimes it’s about your sanity. Fortunately, there are ways to combat those feelings by ensuring you provide an educational app so that Cranky Toddler is learning rather than being sucked into some mindlessness. Here are some top picks on free kids apps (without hidden in-app purchases) that are good for your kids.

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What Are Non Farm Payrolls?

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There is loads of economic data coming out every day that can have a tremendous effect on the markets. Non farm payrolls is a big data point, but so is data coming from the rest of the US government, like consumer confidence indexes and explanations of defense spending. The US is a massive governmental entity that can have a huge effect on the global economy, in many ways you might not expect.

First, take a look at what economics actually is. The freshman college course that you might have slept through for much of second semester actually had a lot to teach you. Economics deals with choice. It purports to deal with rational human behavior in a world where there is scarce resources. How do we get what we want when our choices always have to have a trade-off.

Economics takes into account the way that corporations invest throughout the world, how business pay their employees and how consumers spend their money. In a world that is governed more and more by capitalism, it makes sense to pay attention to the way that all this activity affects people. And the markets.

One of the largest info bombs that hits the global economy each month is the United States report on non farms payrolls. Sometimes the most effective piece of inof is the number of jobs added to the US economy added each month. That small bit of data can have an effect on the S&P 500, the confidence of consumers spending throughout the country and how foreign investors see the world. All of that can have a major effect on global markets.

Also released with non farm payrolls is the U.S. unemployment rate. That metric is very important in determining the psychological health of the US economy. And the US economy has an outsized effect on the rest of the world. Economic indicators in Europe and Asia have a large effect on the global markets as well, but the US is the most powerful government in the world and the largest economy in the world. So the machinations and changes within the economic fortunes of its citizens are vastly important to traders and global market watchers.

Sometimes analysts are bullish about non-farm payrolls and they tend to think that more jobs will be created. Many times, they are wrong and the market corrects itself. Sometimes the non farms payrolls will outperform expectations and the market will respond accordingly. Either way, there are opportunities for traders to make money on these moves.

Following economic data points is important for any investor because you can really get yourself an education about how the world works when you spend time looking at where the money goes. It can help you make decisions about where to put your money and where to get good at trading. Trading can also flourish off the release of economic data like non farm payrolls because savvy traders know which stocks or commodities will spike or fall based on the data that comes out.

That knowledge comes along with watching the market closely. When you pay attention to economic data then you can grasp a global picture of the market and how it might affect your world. That will give indicators and trends that you can follow as you trade stocks, bonds, commodities or futures. Really any kind of trading or investing can benefit from watching and understanding global economic data.

For more information on how to get started in online trading,, look to this resource for picking the right platform that will match your risk appetite and strategy.