How To Save For College

"For a young family just starting out without a lot of cash, saving for their children's college education can seem a daunting task," The News-Times reports.

"...One of the most common mistakes parents make, however, is deciding not to save any money at all for their child's education out of concern that it might impact their ability to get financial aid in the future.

'If you can choose to save, don't not do it because you're afraid of eligibility,' said Karen McCarthy, a senior policy analyst with the National Association of Student Financial Aid Administrators. 'The federal formula for financial aid is driven more by income than by assets, and a student's assets are weighted more heavily than a parent's.'

She explained that the federal government expects that a student can use their assets towards their education, while the government also realizes that parents are saving their money for other expenses as well, including their own retirement or the education of other children in the household."

NASFAA's "Financial Aid in the News" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.