College Funding and Financing Paying for the cost of college is often one of a family's most significant financial obligations. Therefore, it is important that families specifically address college planning rather than simply consider it a by-product of their overall financial strategy. Planning for college costs includes assessing the family's goals and developing and implementing tax and financial strategies to meet those goals. The college planning process is complicated by the presence of the college financial aid system, which must be considered since it can play an important role in how a family will meet college costs. Families need to understand that a college education will continue to be an expensive proposition. However, the outlook for the future looks a lot more promising than it has for some time. The reason is that colleges have realized that they have no choice other than to be judicious in their pricing schedule, more generous in their awarding of financial aid, and creative in offering more merit scholarships to prospective students. Saving money in advance, obtaining financial aid, and leveraging the available education tax incentives are the basic strategies for making education affordable.  Setting aside a certain amount every month or each payday will help build up a fund for college. The earlier the savings begins, the smaller the amount that must be set aside each month. Financial aid is designed to help many families meet college costs. Every year millions of students apply for and receive financial aid. In fact, almost half of all students attending college receive financial aid of some kind. Three main types of financial assistance are available to qualified students at the college level: grants and scholarships, loans, and work-study. Helping clients plan ways to minimize college costs has grown in importance because of the soaring cost of college. College planning is a service we are uniquely positioned to provide because of our detailed knowledge and network with other college planning specialists. This familiarity should enable us to identify weaknesses and to communicate the need for college planning to our clients. We can also play a key role in (a) analyzing the financial and tax implications of proposed asset plans, (b) assessing and estimating a client's eligibility for financial aid, and (c) communicating the results of this analysis to our client's other advisors, which typically include (among others) an attorney, an investment advisor and insurance professional.   Glaus & Associates, C.P.A., L.L.C. 2855 Independence Cape Girardeau, MO 63703 (573) 334-8474  (573) 334-8713 FAX normanglaus@glauscpa.com