By John J. Kruzel
American Forces Press Service
Aug. 1, 2007 - A company that makes test-preparation products for students gearing up for college entrance exams is offering free materials to servicemembers and their families, sacrificing a chunk of its bottom line for those on the front lines. eKnowledge is an online- and CD-ROM-based learning program that teaches test-taking techniques for the Scholastic Aptitude Test, or SAT, and American College Test, or ACT, among others. The company plans to expand its coverage soon by offering complimentary programs to Junior ROTC members.
Charlie Beall, eKnowledge chief executive officer and a former Marine, fought in Vietnam as infantry officer. He said he has sympathy for servicemembers whose income might be strained by $300 or $400 price tags attached to premium test-prep products.
"A sergeant in the Air Force stationed in Singapore who's got a couple of teenage kids that are getting ready to go to college can't afford $400 or $500 apiece for these test-preparation products," Beall said. "A lot of these folks have children in the JROTC program, so they're going to have help with tuition because they're going to go to school on ROTC scholarships.
"But that doesn't help them financially with their ACT and SAT test preparation, which ultimately is going to have an influence on which schools they can go to," he added.
SAT and ACT exam scores often weigh heavily in college admission judgments and can tip the scales toward an applicant's acceptance or rejection. Beall estimates students improve their scores 30 to 40 percent when they prepare with eKnowledge products, compared to those who don't use a premium-prep program.
A group of National Football League players last year heard through their agency, Victory Sports Group, about eKnowledge's plan to donate study materials to boost troops' and their family members' chances at gaining admission to choice schools.
The seven NFL players -- Mark Anderson of the Chicago Bears, Jon Bradley of the Tampa Bay Buccaneers, Garrick Jones of the Atlanta Falcons, Corey Williams of the Green Bay Packers, Jason Radar of the Miami Dolphins, Ahmaad Galloway of the San Diego Chargers, and Scott Young of the Philadelphia Eagles -- jumped at the chance to support servicemembers and their families.
With the football players' help, eKnowledge donated $6.9 million worth of multimedia SAT/ACT preparation materials.
Young said he was inspired to team with eKnowledge because of Jake Johnson, Young's best friend since high school. As a Marine, Johnson spent four years serving in Operation Iraqi Freedom.
"When people are willing to put their lives on hold to serve and protect the U.S., our freedoms (and) everything we know as a country, it's the least we can do to help these people in the military come home and get back to a civilian lifestyle, to get back and get that little jumpstart into education," Young said.
"I think it is owed by the civilian population to help out people who are fighting for us and risking their lives and the families (who) are right there with them," he said.
eKnowledge and NFL participants have donated more than 48,000 test preparation CDs and DVDs, and received roughly 20,000 thank you notes from satisfied troops. One note was even postmarked from Africa, where a servicemember was stationed.
"As a military parent residing in Kenya," Air Force Maj. Douglas McClain wrote, "I truly appreciate the opportunity to obtain these products for my daughter who attends the international school here.
"This program will guarantee that she has current material to prepare for the SAT and ACT," the note said. "Thanks from an Air Force major who is trying to serve his country and also take care of his family."
Servicemembers interested in receiving free eKnowledge products can complete an online request form at www.militaryhomefront.dod.mil by following the link to "Donation: VSG/NFL Players." Requests can also be made by calling eKnowledge at 951-256-4076 or via e-mail at support@eknowledge.com.
Showing posts with label tuition. Show all posts
Showing posts with label tuition. Show all posts
Thursday, August 02, 2007
Thursday, March 22, 2007
Groups Makes College Less Painful for Parents
By Samantha L. Quigley
American Forces Press Service
March 21, 2007 – Parents of even young children often wonder how they'll pay for college tuition, but military service organizations are taking some uncertainty out of the equation. The Military Officers Association of America and the United Services Automobile Association both offer college savings plans to help servicemembers defray the cost of college educations long before the bill arrives in the mail.
MOAA and USAA also are members of America Supports You, a Defense Department program highlighting the ways Americans and the corporate sector are supporting the nation's servicemembers.
Both organizations offer state-sponsored 529 College Savings Plans, which are available in nearly every state.
MOAA's "Degrees of Success" plan, chosen for its low fees and expenses, has been available to all servicemembers since November, Phil Dyer, MOAA's deputy director of financial education, said. It also offers a waiver of the typical $3,000 initial fee. The waiver requires enrollment through the MOAA Web site and participation in a $50 automatic payment plan.
Dyer, who is also a certified financial planner, said the frequency of that payment is flexible.
The $3,000 waiver is automatically available to all enlisted personnel. Officers wishing to take advantage of the benefit must be MOAA members, however, Dyer said.
Investing in a 529 plan is much like investing in mutual funds, Dyer said. "Some are fixed income choices, which may return 4 percent a year, but most of them are tied to a basket of stock market mutual funds," he added.
If an investor doesn't want to play the market when it comes to paying for college, there's an option that will put minds at ease, Dyer said. "Most 529 plans will have what is called an age-weighted option, ... kind of like a fire-and-forget missile," he said. "You just pick the maturity year that you want and then they will automatically adjust the investments as you draw closer to that to make it more conservative."
The 529 plans also offer benefits beyond defraying the cost of college before the child begins classes. For instance, withdrawals used for qualified educational expenses are state and federal income tax exempt, Dyer said. Qualifying expenses include participation in accredited trade school programs, undergraduate study at two- and four-year schools, and graduate programs, Dyer added.
Owners of these savings plans -- generally parents -- are free to change the beneficiary once a year with no penalty, he said. That feature is useful if a beneficiary child, for whatever reason, doesn't use the money saved.
"If you get to the end of the line and nobody's used the money, ... you (can) take the money out for a nonqualified education expense and it's treated just like a premature (individual retirement account) distribution," Dyer said. "What that means is ... that anything you take out is going to be added to your taxable income for the year."
The money also incurs a 10 percent "non-qualifying withdrawal" tax penalty, he said.
While USAA offers a similar plan, the terms are a little different, June Walbert, a certified financial planner with USAA, said. USAA members can open an account for as little as $250 with a subsequent $50 per month contribution. The organization also offers an additional feature to help boost a 529 College Savings Plan's bottom line.
"Our program is linked with the Upromise rewards service, which means that if you register a credit card or a debit card with Upromise -- without any catches or without any fees -- if you shop and use certain products, ... then you can get Upromise rewards credited directly to your 529 College Savings Plan," she said. The Upromise program is connected with thousands of retailers and restaurants.
In addition to the 529 College Savings Plan, USAA offers another option, the Coverdell Education Savings Account. Money in a Coverdell account can be used for education beginning at the elementary level and continuing through higher education, Walbert said.
"So if the parent starts a Coverdell Education Savings Account when the kiddo is born, a few years later they can start withdrawing the money after it's had some time to percolate, if you will, in the market," she said.
The Coverdell plan has slightly different guidelines from 529 plans, she added. There is a $2,000 a year contribution limit, and there are income parameters imposed by the Internal Revenue Service. "So you can't make too much money and still qualify for the Coverdell Education Savings Account," Walbert said.
One form of college savings plan that Walbert cautions parents about is the 529 Pre-paid Tuition Plan, which is valid only in the state it's linked to. It's a little riskier, she said, and that risk has more to do with a child's choice of schools than stock market fluctuations.
"None of us know where our kids want to go to school, number one," Walbert said. "With a 529 Pre-paid Tuition Plan, (investors) are buying tuition credits for the future at today's rates, ... and the requirement is that you go to school in that state."
Article sponsored by military and police personnel who have authored books as well as criminal justice online leadership.
American Forces Press Service
March 21, 2007 – Parents of even young children often wonder how they'll pay for college tuition, but military service organizations are taking some uncertainty out of the equation. The Military Officers Association of America and the United Services Automobile Association both offer college savings plans to help servicemembers defray the cost of college educations long before the bill arrives in the mail.
MOAA and USAA also are members of America Supports You, a Defense Department program highlighting the ways Americans and the corporate sector are supporting the nation's servicemembers.
Both organizations offer state-sponsored 529 College Savings Plans, which are available in nearly every state.
MOAA's "Degrees of Success" plan, chosen for its low fees and expenses, has been available to all servicemembers since November, Phil Dyer, MOAA's deputy director of financial education, said. It also offers a waiver of the typical $3,000 initial fee. The waiver requires enrollment through the MOAA Web site and participation in a $50 automatic payment plan.
Dyer, who is also a certified financial planner, said the frequency of that payment is flexible.
The $3,000 waiver is automatically available to all enlisted personnel. Officers wishing to take advantage of the benefit must be MOAA members, however, Dyer said.
Investing in a 529 plan is much like investing in mutual funds, Dyer said. "Some are fixed income choices, which may return 4 percent a year, but most of them are tied to a basket of stock market mutual funds," he added.
If an investor doesn't want to play the market when it comes to paying for college, there's an option that will put minds at ease, Dyer said. "Most 529 plans will have what is called an age-weighted option, ... kind of like a fire-and-forget missile," he said. "You just pick the maturity year that you want and then they will automatically adjust the investments as you draw closer to that to make it more conservative."
The 529 plans also offer benefits beyond defraying the cost of college before the child begins classes. For instance, withdrawals used for qualified educational expenses are state and federal income tax exempt, Dyer said. Qualifying expenses include participation in accredited trade school programs, undergraduate study at two- and four-year schools, and graduate programs, Dyer added.
Owners of these savings plans -- generally parents -- are free to change the beneficiary once a year with no penalty, he said. That feature is useful if a beneficiary child, for whatever reason, doesn't use the money saved.
"If you get to the end of the line and nobody's used the money, ... you (can) take the money out for a nonqualified education expense and it's treated just like a premature (individual retirement account) distribution," Dyer said. "What that means is ... that anything you take out is going to be added to your taxable income for the year."
The money also incurs a 10 percent "non-qualifying withdrawal" tax penalty, he said.
While USAA offers a similar plan, the terms are a little different, June Walbert, a certified financial planner with USAA, said. USAA members can open an account for as little as $250 with a subsequent $50 per month contribution. The organization also offers an additional feature to help boost a 529 College Savings Plan's bottom line.
"Our program is linked with the Upromise rewards service, which means that if you register a credit card or a debit card with Upromise -- without any catches or without any fees -- if you shop and use certain products, ... then you can get Upromise rewards credited directly to your 529 College Savings Plan," she said. The Upromise program is connected with thousands of retailers and restaurants.
In addition to the 529 College Savings Plan, USAA offers another option, the Coverdell Education Savings Account. Money in a Coverdell account can be used for education beginning at the elementary level and continuing through higher education, Walbert said.
"So if the parent starts a Coverdell Education Savings Account when the kiddo is born, a few years later they can start withdrawing the money after it's had some time to percolate, if you will, in the market," she said.
The Coverdell plan has slightly different guidelines from 529 plans, she added. There is a $2,000 a year contribution limit, and there are income parameters imposed by the Internal Revenue Service. "So you can't make too much money and still qualify for the Coverdell Education Savings Account," Walbert said.
One form of college savings plan that Walbert cautions parents about is the 529 Pre-paid Tuition Plan, which is valid only in the state it's linked to. It's a little riskier, she said, and that risk has more to do with a child's choice of schools than stock market fluctuations.
"None of us know where our kids want to go to school, number one," Walbert said. "With a 529 Pre-paid Tuition Plan, (investors) are buying tuition credits for the future at today's rates, ... and the requirement is that you go to school in that state."
Article sponsored by military and police personnel who have authored books as well as criminal justice online leadership.
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