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Early planning and extensive research can give families essential information on the resources available to help pay for college.

THE IMPORTANCE OF PRIORITIES

Years ago a family's two biggest savings goals were retirement and a mortgage. Billy Vail, a certified college planning specialist with Generations Financial Advisors in Granger, said paying for college has trumped the mortgage as the second-greatest expense families face.

Vail meets regularly with parents who say they want to put their kids through school no matter what it takes.

"Once you have that child, it's the greatest thing in the world," he said. "But you have other responsibilities to make sure you take care of before you start making sure that they're going to be able to go to college."

It would be irresponsible, Vail said, for parents to begin planning for college if they don't already have a plan in place to address issues like retirement, house payments and maintaining adequate life insurance.

STARTING OUT

If a family wants to start building their child's college fund early the first thing they must do is determine the estimated cost of attendance. Vail said parents should examine current costs of public and private colleges and universities and factor in an annual 5 percent rate increase to determine what they will cost in 17 years. Once the cost of attendance is determined, parents need to have a discussion about how much they can realistically expect to commit.

Two plans parents can use to set money aside for college are a 529 Plan and a Coverdell Education Savings Account.

A 529 Plan is a state-sponsored savings plan that can be used for qualifying post-secondary educational expenses. Every state offers a 529 Plan, Vail said, and Indiana's offers a 20 percent state tax credit for contributions up to $5,000.

A Coverdell account is similar to a 529 Plan, but has a $2,000-per-year maximum contribution level and can be used for K-12 expenses as well.

SHARING THE COST

As students enter high school more of the responsibility of offsetting college expenses shifts to them. Exceptional academic achievement can give students a chance to earn money for college that has no ties to a family's finances.

Students who push themselves look more attractive to colleges and may qualify for merit-based pay, Vail said. Chances are an admissions counselor would rather see a student with a 3.1 grade-point average earned from honors advanced placement classes than a 3.8 GPA from a regular class.

"Because they know what it took to get a 3.1 in an AP class," Vail said.

AP courses are also helpful in reducing the overall duration of college. Vail said the average student is now spending between 4 1/2 to 5 1/2 years at college, and every year costs money. Seniors who take AP tests at the end of high school may be able to opt out of some college classes, cutting the amount of time and money spent on campus.

Vail acknowledged that most 17- and 18-year olds don't know what kind of career they want. But the sooner they figure it out, the sooner they may get their college degree.

Sites like www.myroad.collegeboard.com contain interest and personality testing that can help prospective students discover what potential careers they're wired for, what majors support those careers and what colleges and universities provide those majors.

For some families, student loans provide the best bet at filling the financial gaps between high school and college.

The advantages to Federal Stafford Loans, which are typically offered to college students and their parents, are that they have a relatively low interest rate and have payments that are typically deferred until after graduation, Vail said. The downside is that the loans must be repaid, regardless of whether or not the student graduates.

Private loans may also be available for students, Vail said, though they may have less flexible terms and varying interest rates.

Some Indiana students can also benefit from the Twenty-first Century Scholars program. The program, which aspires to give low and moderate income families a way to afford college, is open to income-eligible sixth-, seventh- and eighth-graders. Students who enroll in the program and fulfill a pledge of good citizenship are provided college tuition for four years at participating Indiana colleges and universities. Students who attend private colleges are given tuition amounts comparable to the public college rate.

Any student interested in finding financial aid for college needs to fill out the Free Application for Federal Student Aid. FAFSA determines a family's need for financial aid by looking at a family's financial situation. It's used when applying for federal student financial aid, loans, work study and is used by many colleges when awarding financial aid.

Indiana's FAFSA deadline is Wednesday.

EDITOR'S NOTE: The original version of this story had Tuesday listed as the FAFSA deadline. This version is correct.