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MONEY SMART KIDS
Ways to Pay for College
by Janet Bodnar

Judging by my mail, there seems to be a bit of a generation gap over the question of who should be responsible for paying college bills -- students themselves or their parents.

Although many parents willingly take on the bulk of this responsibility, others can't afford it -- and some who have the money choose not to spend it. Even when parents are able and willing to pay, they often are torn between lending a hand so their kids don't have to take on major debt, or making kids go it alone as a character-building experience.

Children, on the other hand, often assume their parents will pay the full freight. When that's not the case, they're at a loss as to how to come up with the cash -- especially if their parents are so well off financially that they don't qualify for financial aid.

It's clear that parents and kids need to discuss this issue well before it's time to file the college applications. Parents, your kids need to know exactly how much your budget will bear. If they're going to have to pay a chunk of the costs, it's up to you to help them find alternative financing.

Last week, for example, I talked about how to save money by seeking scholarships, or attending a two-year school and then transferring. I've also known students who have taken advantage of the following three options:

• Cooperative education. Co-op programs let students get a paying job related to their academic major and either work half-time or alternate semesters of work and study. Then they can use their earnings to help pay tuition bills. Well-known co-op schools include American University, Drexel University, Georgia Tech and Northeastern University.



• Military service. An Army ROTC scholarship covers up to full tuition for four years. In return, students are required to serve four years of active duty after graduation, or a longer part-time stint in the Reserves or National Guard. Joining the military also qualifies students for education benefits.



• The three-year plan. Get out of school a year early by combining high school advanced placement credits, extra courses and summer school. Through the College Board's College-Level Examination Program, students also can get college credit for subjects they've already mastered elsewhere. Admittedly, finishing in three years cuts down on the college fun factor. But it also cuts down considerably on the cost.