Holiday Leftovers from the NICCP

Sixty-five percent of grandparents plan to contribute to their grandchildren's education and more than half of those grandparents will give more than $10,000, according to a survey by the Hartford Financial Services Group. But less than one-third of the grandparents surveyed have coordinated college savings with their adult children.

According to the Kiplinger Tax Letter, only certain forgiven student loans are exempt from tax. The exemption is limited to loans forgiven because the borrowers worked for a period of time in public service jobs or taught in schools in low-income areas. This is so whether the loan was issued by the government or by a private lender. If the forgiveness is due to other reasons, such as school closure or a drop in income, borrowers escape tax only if they filed for bankruptcy or are insolvent at discharge.

Take some advice from Marc Sheer, PhD, career counselor and education consultant about cutting costs with college. Take classes during break periods. Many universities offer courses that can give you full credit for one to two weeks of study, at a lower price per credit than is charged for regular courses. Take extra classes during regular semesters. Many colleges charge a single price for tuition no matter how many classes you take. If most studetns take four courses per semester and you can take five for no extra costs, each course costs you less money and you may be able to graduate early - saving even more.