MEFA's Martha Savory on College Planning

-- good day for the stock market so far Dow's up about fifty points and take that right now that is and the NASDAQ is probably about flat right now down just slightly couple points S&P is up five tenured US. Treasury is at one point 905 buried gold is up now five dollars and ninety cents an oil trading up only 55 cents. It's holding 9736. All right we are joined by mark. From meet with that. Okay I know. Anyway Martha savory joins us today from meet the Martha welcomed the show Daria Dolan. I think it's. Thanks for having me. We're glad to eight Martha tell our listeners would meet the stands for -- I'm sure -- the Massachusetts educational financing. Think authority. -- -- and let's go through some of that the -- now what does it cost to attend some of the various U -- schools I'm thinking about. UMass Amherst UMass Boston Dartmouth Pittsburg State lol Framingham state. Well -- I'll give you the general -- I think that's probably the best. Thing to do for families that are thinking about planning and saving and paying for college. And -- this year going into the 20122013. -- UMass Amherst which as you know as the flagship. Camp up in the -- that attempt. That cost is about 26000 dollars. All land. -- code that includes tuition fees room and board books and supplies personal expenses miscellaneous expense as. So compact give you an idea of what what it is that. The University of Massachusetts at Amherst UMass Boston would be a little bit -- in all likelihood because there wouldn't be a crewman -- charge for that kind of institution. Because they have very limited dorm space that's available to students to study that. Says state college system. We you know I would estimate that it probably about 22000 dollars per -- like expertise state university your Bridgewater state university. Those are -- all in cost for that tip of kept -- What about the private schools and I'm thinking about the ones around Boston. You've got to Bentley College Merrimack College stone hill college Babson these are private they're not state systems schools how much they cost. Well you know obviously the cost can range depending upon any institution but I would say that went Stanley are thinking about how they're going to meet those college costs. They need to be thinking anywhere in the range of forty. Over 50000 dollars for the upcoming academic year. And -- firm meet this perspective when do you advise parents to start saving for college -- have any preferred methods. Well our you know our recommendation perfectly and were always delighted what we hear from people. That has started saving for college where they've actually been had a child at that that's our. Scenario but what we liked that they need is that we we apparently from cradle to comment on all the way that like spam -- Planning and saving and paying for college. And -- into earlier a family can Begin that -- Obviously the better off but isn't an update you know that the time value money is significant when you Begin to -- when your children are little. And I know I have to to college age children at night. I have my condolences. I don't know. I have 11 more to get through. And by you know those those years. Paying for college but back that we had they've really made -- each different -- Added -- gave up options that they think other families that don't think about saving for college. They don't have that option. But Martha let me ask you because I have heard from other families that they said well. Money that's in the 529 plan hurts our college application for passer. Right and that -- that's the biggest. Meant that Alec and perpetuated among those anxious family that you talk to on you know the baseball -- a Little League field. The reality is is that because the saving up -- 29 -- is considered the asset of a parent. That in a formula that's decided by the federal government to afford the federal financial and is it it's aboard a favorable. Treatment of that app that because at the treatment of a of the parent app that as opposed to. Peeing in the student. Asset side of the formula so in reality. It doesn't really hurt -- -- -- after the decreed that they think it and at the end of the day if they don't say how do they think they're going to pick a college. I think it catches a lot of families by surprise of the night I see it in the community in which I live you know families really struggle. They're doing things -- refinancing their homes and tapping in a home equity lines of credit. Martha what does meet -- make available to Massachusetts residents for student loans let's say you've saved -- don't have enough you still -- 50101000. Dollar gap per year what are the options through me for. Well it's. It's that they need options aren't that one of the things that -- should now is that we do a tremendous amount of community education. That they should come to our web site which is a very simple -- but that'll work. To be able to see where we are -- their community learn about what all of their options are. And we have available to families. -- -- -- That that are really promote the lone tree across the country and these loans are made available -- him -- to our map which president. Or out of state. Immediately that are coming to Massachusetts to study at any one of our colleges -- universities either public or private so -- Great benefit for our families right here and the common while. And those treatments we have a couple of different repayment option. And they start as low as six point 89%. And parents have to sign about. The parent. And that means but it's it's but we refer to was -- Stanley amounts to a book apparent in the student together are on our -- now. Yet many grandparents sign up the -- I'd run into a couple times June was talking to me about how somebody she knew. The grandparent has signed up for their child their grandchild college education. Sure and that that actually -- It doesn't have to be apparent for the federal program have to be apparent apparent on behalf of the child at meet it can be any creditworthy -- -- so if we have apparently where the parent. Doesn't have that credit but the grandparent. Four and not -- -- or uncle are Brothers that scare it can be taken all the on the -- note together so we went back to you that yes we -- -- You don't want to make this college pathway -- reality of their child and -- kind of look to the strongest. You know the credit with and the family. And we have to three people on on now meet a. Would set with the average loan balance for -- graduating college today Martha. Well if it's. Significant it's about 23 to 24000 dollars depending upon where that child has gone and that's just for the federal financial aid and obviously. What we want is always our families here and the commonwealth of to take advantage for those students to take advantage of the federal law that they can -- in their own name. Come back to students are graduating. With those loan debt on the federal side. You know -- except in some cases of 24000 dollars. Well Martha thank you very much for your time and I hope to come back against about I would not do it at night Martha savory from me for joining us today on the financial exchange.