Six Ways to Get Free Cash for College
GET FREE CASH -- CREDIT CARDS
Fidelity offers an American Express card that will rebate 2 percent of all purchases to a Fidelity 529. Upromise just launched a Mastercard that will send rebate checks or funnel rebates to a Upromise 529 account or to reduce Sallie Mae educational loans. The new card will rebate at least 1 percent on all purchases, 10 percent on groceries at selected stores, and-if consumers choose-additional rebates on certain gasoline or restaurant purchases. Babymint, Futuretrust, and FreshmanFund offer credit cards that rebate at least 1 percent to any 529 account. The catches: Spenders who carry balances or pay bills late will most likely pay more in interest and fees than they will save for college. Travis Plunkett, spokesman for the Consumer Federation of America, notes that credit card companies are not charities; accordingly, they are probably making more money from their borrowers than they are giving back.
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Six Ways to Get Free Cash for College
It's true: Some states, businesses, and colleges are really handing out free cash to help build up parents' college savings accounts. There are a few catches, of course. Nobody should sign up for anything that sounds suspiciously good without doing a little homework. And most of the grants and rebates are comparatively modest: The typical family might reap a few hundred dollars. Few parents will get enough free cash to make up for the average 20-plus percent decline in 529 college savings plans over the past year. Still, those who collect the grants when their children are young or who are diligent about maximizing rebates could generate several extra thousand dollars. Click through to see six sources of free cash, as well as some of the "catches."
Six Ways to Get Free Cash for College
GET FREE CASH -- STATES
In at least nine states, government agencies or charities offer grants for college savings to local residents. Maine, for example, in 2009 started handing out $500 to babies born in the state for whom an adult opens a Maine 529. In states such as Arkansas, Colorado, Michigan, Minnesota, Rhode Island, and Utah, the matching grants go only to low- and middle-income families. Louisiana, New Jersey, and a few other states offer different kinds of grants or scholarship programs to encourage savers.
Six Ways to Get Free Cash for College
STATES -- THE CATCHES
Each state has its own deadlines and red tape. Some require parents to fill out long forms early each year, for example. Utah's grants are so new and limited that only 19 families had qualified in the first three months of the program, which started January 1. And the Utah Educational Savings Plan, which awards the money, will stop accepting applications for the year on May 29.
Six Ways to Get Free Cash for College
GET FREE CASH -- EMPLOYERS
In 2008, Unum started giving new parents grants of $700.
The catches: Parents have to open a 529 savings account before the baby's first birthday, and the bonus is taxable.
Six Ways to Get Free Cash for College
GET FREE CASH -- CREDIT CARDS
Fidelity offers an American Express card that will rebate 2 percent of all purchases to a Fidelity 529. Upromise just launched a Mastercard that will send rebate checks or funnel rebates to a Upromise 529 account or to reduce Sallie Mae educational loans. The new card will rebate at least 1 percent on all purchases, 10 percent on groceries at selected stores, and-if consumers choose-additional rebates on certain gasoline or restaurant purchases. Babymint, Futuretrust, and FreshmanFund offer credit cards that rebate at least 1 percent to any 529 account. The catches: Spenders who carry balances or pay bills late will most likely pay more in interest and fees than they will save for college. Travis Plunkett, spokesman for the Consumer Federation of America, notes that credit card companies are not charities; accordingly, they are probably making more money from their borrowers than they are giving back.
Six Ways to Get Free Cash for College
GET FREE CASH -- WEB SITES
Babymint, Littlegrad, Futuretrust, Upromise, and other rebate Web sites will send cash back to shoppers who click through their sites to partner retailers.
The catches: Some of the Web sites make you jump through a few hoops to collect your cash.
Six Ways to Get Free Cash for College
GET FREE CASH -- COLLEGES
Several hundred colleges are offering matching grants for parents who sock away college savings. A marketing company, Sage Scholars Inc., has persuaded 230 private colleges to guarantee "Tuition Rewards" scholarships to students from families who invest or shop with Sage's business partners. And 274 private college members of the prepaid Independent 529 plan give parents at least a half-percentage-point discount if they buy tuition for a youngster at today's cost. Dickinson College upped the discount ante last year, adding an extra 4 percent to its inflation discount. That means a family with a 10-year-old who puts about $29,000 in the plan today will have paid a year's tuition in 2017, even though a year's tuition in 2009 is nearly $40,000 and, at the current rate of inflation, will probably reach $60,000 in eight years.
Six Ways to Get Free Cash for College
COLLEGES -- THE CATCHES
Plenty. Both the Independent 529 and Sage Scholars networks of colleges are limited to a few hundred comparatively expensive private colleges. There's no guarantee members' children will apply to or be admitted to the member schools. Both programs require parents to sign up several years before they tap their money. And both cover only tuition, not room, board, books, or any other college-related expenses. Sage members build up Tuition Rewards only by investing or shopping with Sage partners, some of whom charge more for their products and services than competitors not affiliated with the firm. In addition, parents of students who don't attend a member school don't get a penny of the promised scholarships back. Sage rules allow colleges to count "rewards," which average about $1,700 a year, against scholarships they were going to give the student anyway, so students may not really get any extra money. If a student doesn't end up attending a member of the Independent 529 network, parents who withdraw their money can receive no more than 2 percent more than they contributed. (But they are also limited to 2 percent less than they contributed, which makes the prepaid plan comparatively attractive right now, when the stock market is weak.)
Six Ways to Get Free Cash for College
GET FREE CASH -- RELATIVES & FRIENDS
Freshmanfund.com and Ugift offer electronic tools to make it easier to ask relatives and friends to donate to your college savings account in lieu of, say, a birthday or graduation gift.
The catches: While Freshmanfund will funnel gifts to any 529, Ugift will work only with Upromise 529s. Some relatives and friends might find requests for donations to be, well, tacky. And, let's face it, you might not have many wealthy relatives. Ugift says that half of the birthday or other event donation requests result in total donations of no more than $100.
Six Ways to Get Free Cash for College
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Comments: (28)
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By: Sheryl on 8/24/2010 10:16AM
I applaud Mr Hudson for speaking so eloquently about the subject at hand and using his very distinquised position (being Valedictorian) to do so.
He was not rude, he didn't seem bitter and he was definately not ignorant, and I wish some adults would take their cue from the actions of this young man.
I hope the staff and adminstration realize that there are other bright students in this world, and that they are doing themselves a disservice by not reaching out to students of other ethnicities.
I wish the very best for Mr Hudson....he is obviously on the right path!!
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By: Deborah Mapp on 8/24/2010 11:03AM
I applaud this young man for displaying enough courage to speak ot against an injustice and to help othersto obtain an education that may equal his. Our adult leaders need to take lessons from him. May he be blessed always.
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By: Ha on 9/01/2010 11:13PM
Injustice? Is that what you think a blind multiple choice test is? I've helped administer several of the tests and in each I've seen students of every nationality come to the various tests sites to take the test and nothing else. They are not asked their nationality is or what color their skin is. They take a simple test and that is it. The essays are read and graded. No names are given when the english department goes through them.
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By: Garlene on 8/24/2010 11:47AM
I applaud him for saying what he felt 'cause it had to be said. That took a lot of courage.
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By: Kierah on 8/24/2010 11:47AM
Just for accuracy's sake - Justin wasn't valedictorian. I went to HCHS. The title doesn't exist since students are not ranked. Students submit their speeches to committee for selection.
HCHS is an incredible learning institution and I sincerely hope that it is able to weather this storm.
Diversity at elite institutions will continue to be an issue as long our kids know every song on the radio yet can't grasp state capitals. Let's go people!
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By: Carla on 8/24/2010 2:14PM
If he wasn't valedictorian, why was he able to get up and give a speech? Regardless, he felt he needed to say what he did in his speech because of what he experienced at the school. Statistics don't lie. It was proven that what he said was correct. Either you are upset about what he said or he may of stepped on your toes. Regardless, it was a much needed speech and I applaud this young man for having the courage to stand up and speak about what he thought was wrong. Good Luck, Justin!
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By: Naima on 9/08/2010 5:05PM
Thank heaven for Justin's combination of intellectual ability and performance, critical thinking and empathy for others, a rare combination. Watch for the backlash outcry about the flas of 'affirmative action' (so -called) that places allegedly unqualified black students in high performance programs ahead of qualified whites! Clearly, that is not the case here. Justin made an observation that is clear to all of us who came through these kinds of schools or programs that have been part of public education for a very long time. The fact that these programs are publicly funded means anyone ought to have the opportunity. But as Justin so elegantly pointed out, it depends not only on who you know but on who knows you. Many more children of African and Indian descent (which includes all Latinos/Latinas) would do as well as Justin if they knew about these programs from persistent researcher parents and well informed, anti-racist teachers. When I was in school you got your one shot in the 4th grade depending on how well you did on the ITBS. From those scores we were singled out and tracked for a basic or essential (that means barebones) education or an honors, high honors or advanced education. I never thought I was special; I just got discovered, I got lucky. That means in all black school settings there were always one of two honors tracks that were predominately white if there were still any whites around after the Brown decision. So, those of us who were common working class children -- our educational, employment and life opportunities were determined by the time we were 9 years old. That was more than 50 years ago! Up with young people like Justin who can speak truthfully not only about the so called race and ethnic barriers but the tremendous class barriers to an excellent public education.
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By: Marsha on 8/24/2010 1:55PM
I think our President could learm alot from this young man as it pertains to courage and Race. Justin Hudson is my role model!! Even speaking as a black woman in my forties, I would proudly say I want to be just like him as I grow older!! God bless him. I pray he has much success!!
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By: Marsha on 8/24/2010 2:27PM
@ blkteacher.
With all due respect to you sir or madame, I would like to ask how you feel that black students want standards lowered for them?? I would suggest that perhaps standards have been lowered for them. They are just simply not expected to do as well as other races of students. I first began to see these glaring disparities when I started researching schools in other cities; the passing grades for standardized tests were higher than those in schools which had a higher percenatge of miniorites. And because the bar was set so low in these schools, it made it "appear" that these schools were performing well. I also would like to suggest that if there are little to no black teachers on staff at Hunter College High, then this means that predominately white teachers are making up these exams. I would really be curious to know if in some way these exams were not being "weighted" to favor the kind of student body these teachers favor. Clearly after reading the Ny Times article there is a problem; anytime you hear statements like "culture of fear" and five different principals over five years??? Hmmmm something is very wrong!! My son scored all fours on his state exams, and he was named Salutatorian of his fifth grade class. He should have certainly had the same opportunity had there been a more open playing field. Unfortunately we didn't even know about this school. I will end with this: My daughter had worked very hard on an assignment for her science class. She received and 80 or so, and she really felt she deserved a higher grade. The teacher's response was something to the tune of "well what are you complaining about, you got an 80 something." I feel a better response would have been to applaud and encourage her desire to be excellent. But not to worry, she got that from her mother when she got home!!
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By: putridbreath on 8/24/2010 2:36PM
Bravo for him. He's certainly no Clarence Thomas.
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