Credit tips for college students

These days, a college education is more expensive than ever before – and costs are rising every year. That’s why many students and families look for financial aid and educational loans. A good credit history is essential for qualifying for one of these loans, which can offer very favorable terms.

Once again, it is essential to review your credit history before you apply – to make sure the information is accurate and up-to-date.

Most universities have financial aid resources that should be thoroughly investigated by students and their families. Even if you do not qualify for financial aid because of high income or assets, there may be other resources of which you can take advantage.

Consider an Educational IRA. Implemented in 1998, Educational IRAs offer substantial tax advantages for families, both immediately and when the child goes to college. If you qualify, you can make tax-free contributions of up to $500 per year.

There are some restrictions, so please consult your bank or tax advisor for more information.

Start saving immediately. College costs have risen substantially in the past few years.

Note: Some states have special savings plans if you commit to sending your child to college within the state. Ask your bank or State Representative’s office about them.