EDUCATION
SPECIAL SECTION:
college, and some plans even allow for savings to be used at the
child’s discretion (for education or something else) when they
reach a certain age.
Parents wishing to save specifically for education purposes can
open a 529 college savings plan. The name comes from Section 529
of the IRS tax code, which encourages saving for future educational
purposes through a tax-advantaged plan. In Pennsylvania, there
are two options available: the PA 529 Guaranteed Savings Plan
(GSP) or the PA 529 Investment Plan (IP). Each plan requires a
certain amount of money down (as little as $15) and both plans
can be used at most post-secondary schools, including colleges,
universities, technical and professional schools, or even elementary
or secondary public, private, or religious schools. Another benefit is
that neither of these plans is limited to in-state tuition.
The biggest difference between the two plans is the way your
money is invested and how it’s managed. The GSP allows you to
choose the type of school or tuition level to save toward, then the
PA Treasury manages your investments from there. The benefit
is that your savings continues to grow with tuition inflation. The
IP gives you more freedom to invest your savings into a variety
of 17 different investment options, but your money is more fluid,
allowing you to lose or gain depending on market conditions.
There are several other options available when starting to save
for a minor, including educational savings account (ES), Uniform
Transfer/Gift to Minors Act, custodial accounts, or simply putting
money under your mattress. No matter what route you choose, it’s
never too early to start saving.
TRADE SCHOOLS
Over the past 30 years, the cost to attend a four-year college has
increased by 213 percent, leaving many college graduates searching
for ways to repay their student loans. Some high school seniors
are looking to avoid the hefty price tag of a four-year degree and
instead opting to attend a trade or technical school. Trade school
enrollment continues to increase since the early 2000s, but a
steep decline in vocational education in the 1980s and ‘90s led
to a shortage of blue-collar workers across the nation. Trying to
gain back skilled workers has led to an increase in wages, enticing
students and parents alike to see past the old stigma of choosing
a trade school over college. Here are a few of the best trades or
vocations available.
• Air Traffic Controller – With a few years of intense training and
a certification by the FAA, air traffic controllers are highly sought
after. Individuals must have the ability to concentrate, organize
flight plans, inspect radio equipment, and are required to be
constantly vigilant to successfully execute their job duties.
• Radiation Therapist – An associate degree is required to land
a job as a radiation therapist, along with a licensure to practice.
If you’re interested in caring for other people, this job requires
administering radiation for cancer treatments.
• Dental Hygienist – Smile! Your career could be in making teeth
brighter. Dental hygienists work to clean teeth, take x-rays, and
educate patients on oral health. They are also ranked among the
most satisfied workers. You’ll need an associate degree to pursue
this career.
• Electrician – Training to become an electrician takes about as
long as it takes to get a bachelor’s degree and a license, but this
job training pays for itself along the way. If reading blueprints
and installing or repairing wires and other electrical components
interests you, this career might be electrifying.
• Plumber – You’ll need your high school diploma and an
apprenticeship to become a plumber. Once you are licensed, you
can start to work, but you’re sure to need some physical strength
to take on this job.
• Diagnostic Medical Sonographer – After obtaining an
associate degree, sonographers go on to prep patients for
procedures, review and process images for physicians, and
administer ultrasounds. You’ll also be responsible for operating
imaging equipment.
• Elevator Installer – A career with high earning potential,
elevator installers repair and maintain elevators, escalators,
moving walkways, and lifts. A high school diploma and
apprenticeship is required for this role, so if you’re good with
power tools, this job might be a lift up for you.
TYPES OF COLLEGE LOANS
Getting into college is one of the most exciting times of a
student’s life and is the first step in shaping his/her career. Many
colleges and universities offer a myriad of grants or scholarships to
assist with paying for post-secondary school, but often these are
not enough. Student loans provide financial assistance for students
to cover the costs associated with attending a college or career
school, including tuition, supplies, books, and living expenses.
There are several types of loans available including need-based,
non-need-based, state, and private.
Need-based loans are provided to students who are unable to
pay the amount needed to cover all costs to attend college. Need
is determined by the Free Application for Federal Student Aid
(FAFSA), which can be completed online, as the name suggests,
for free! Need-based loans are available as a Federal Perkins Loan,
awarded to students with the highest need, or a Federal Direct
Subsidized Loan, provided interest-free while in college.
If FAFSA determines that a student is ineligible for a need-based
loan, non-need-based loan options are available as a Federal Direct
Unsubsidized Loan or Federal Direct PLUS Loan. Unsubsidized
loans allow the borrower to add interest to the total amount
borrowed after graduation, but beware, as this leads to owing even
more money when it comes time to start paying off the loan. Direct
PLUS Loans provide graduate students or parents the opportunity
to borrow the total cost of attending college, minus other financial
aid received.
Unlike the loans mentioned above that are sponsored by the
federal government, state and private loans are sponsored by banks,
colleges, foundations, and state agencies. The U.S. Department of
Education manages all college loans available by state and requires
students to be in-state residents or enrolled in a college in that state.
Private loans are an option for borrowers but come with terms and
conditions that may not be as favorable as federal loans. Private
loans also require a cosigner who is responsible for repaying the
money if the student fails to do so.
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MONROEVILLE
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