Financial Literacy 101: Local Students Finding Creative Ways to Pay for College

PHILADELPHIA, SEPTEMBER 6, 2005 - As college students begin to head back to classes, many are focusing on a challenging assignment: Coming up with new ways to help pay for tuition and fees.

Research now indicates that local community college costs run approximately 20 percent above the national average, while expenses at four-year private universities can be 30 percent higher. So many area families are thinking outside-the-box in order to stretch dollars and enable all their children to receive an affordable, high quality education.

In a series of interviews, local students, families and administrators shared a few winning strategies:

• Seek Out Employers That Will Pay for Education: Many corporations, hospitals and area colleges offer tuition assistance or tuition reimbursement programs for employees. Contact Human Resources to determine if you, a spouse, or perhaps even your child might qualify for financial assistance. Community College of Philadelphia is one of the local employers that help staff and their families. One of its employees, Evelyn Thomas, and her daughter, Sonia, both graduated from the College in May. Evelyn said she took a job in Housekeeping to help her reduce the costs of earning a college education. After a long day of working, Evelyn would shed her uniform and head for classes. "I wanted to show my granddaughter the value of educating yourself," she said.


• Check Out All Your Opportunities: If you are a displaced worker, you may be eligible for a free semester of college tuition by signing up for Community College of Philadelphia's Opportunity Now, an initiative that began in spring 2002 to help people who have lost their jobs. During the past academic year, 125 residents enrolled through the program, bringing the total number of participants to 787. Of those, 146 continued their education and received their associate's degrees. Additionally, the College has the First Class program, which provides members of the Greater Philadelphia Chamber of Commerce or the Philadelphia Convention and Visitor's Bureau their first class at Community College of Philadelphia free of charge. Contact the College's Admissions office or Member Services at both organizations for further details.

http://www.ccp.edu/site/college_news/current/opportunity.php

http://www.ccp.edu/site/college_news/current/first_class.php


• Consider Accelerated Learning Programs: Accelerated learning programs may also help to reduce the miscellaneous costs associated with earning a college degree. Community College of Philadelphia offers two programs that allow high school students to take college classes: Advance@College allows highly motivated and academically talented 11th and 12th grade students from Philadelphia public, parochial and private schools to take college courses. Tuition is significantly reduced, and no additional fees are charged. Advanced Tech@College accelerates learning for high school students and allows them to work toward a college degree as they get a high school diploma. After completing two years, program participants are able to graduate from high school with up to 24 college credits. The curriculum, designed in partnership with the School District of Philadelphia, provides a seamless transition into an associate's degree-granting program. Public high school students spend 11th and 12th grades at the College's Main Campus taking a combination of high school and college courses. Upon completion of the program, students can continue in the Computer Information Systems curriculum, with course options in Computer Programming, Computer Science, Information Technology, PC Applications, Network Administration or Web Site Development.

http://www.ccp.edu/site/prospective/advance_at_college.php


• Seek scholarships and grants from more common sources such as churches, neighborhood associations, trade and professional associations, and corporations. Unions, fraternities, sororities, and professional organizations can be lucrative sources of scholarship money. Once you have been admitted to a college, visit the institution's Web site to explore special scholarships for students. Major corporations sometimes offer scholarships that are restricted to employees and their families. The Community College of Philadelphia Foundation offers scholarships for academically gifted students enrolled at the College who volunteer in their communities and neighborhoods.

http://www.ccp.edu/site/current/scholarships/
http://www.educationalplanner.org


• Assemble Educational Investors: Ask friends and family to contribute to your education rather than provide gifts or presents. If you are getting married, ask guests to contribute to an educational fund for the two of you in lieu of more traditional wedding gifts. More grandparents are taking on the responsibility for paying their grandchildren's college tuition. You don't have to be a relative to help contribute to a friend's or family member's education. As long as the money is paid directly to the college or university, the gift tax rules do not apply. Investors should consult a financial adviser to determine the best way to help.


• Become A Guest Student: Each year, thousands of students reduce the costs of earning a college by taking classes as guest students. Guest students typically enroll in more than one institution to take classes required for their degree. When you enroll, always make sure the course you sign up for will meet your degree requirements. If you enroll in a community college, you may be able to take some classes required to complete your four-year degree at a much lower price.


• Consider Distance Learning: Transportation and babysitting costs can add to the cost of earning a college degree. Students can reduce these expenses by taking distance learning classes, which enable them to earn college credit via the Internet classes or television.

http://www.ccp.edu/site/academic/distance_ed.php


• Take Full Advantage of the Available Tax Benefits: Consider the Hope Tax Credit (worth up to $1,500 per student) and the Lifetime Learning Tax Credit (equal to 20 percent of a family's tuition). During any particular year, families can claim only one of the credits for each student. The amount of the credit is determined by the amount paid for "qualified tuition and related expenses" for each student and the amount of your modified adjusted gross income (modified AGI). For more information call the IRS at 1-800-829-1040 or check with your accountant or financial adviser.

http://www.ed.gov/offices/OPE/PPI/HOPE/index.html


• Check out Web sites and seek out local merchants that offer deep discounts to college students. Movie theatres, clothing stores, technology stores, book stores and other retailers may offer discounts on purchases to those with student IDs. Check with your student activities office or student life center for free or reduced priced tickets to area entertainment venues. Visit www.campusphilly.org, which offers discounted electronic keychain cards that are accepted at vendors around the city. Community College of Philadelphia is a sponsor of Campus Philly.