College on Grandma?

Physician's Money Digest, September15 2003, Volume 10, Issue 17

Projected tuition costs are swampingthe budgets of parents with college-boundchildren, and grandparents are beingasked to help foot the bill. A recent surveyfor AIG SunAmerica found that 54%of grandparents are already shoulderingpart of their grandchildren's college costsor expect to. One in 5 expect to pay foras much as 75% of these costs, and 1 in4 plan on putting 25% to 50% of collegecosts into a grandchild's college fund.Unfortunately, only 2% chose to helpfund a 529 plan, which many financialaid experts consider 1 of the best ways tosave for college. Instead, more than halfopted to give cash or a combination ofcash and securities, which could cut intoa student's financial aid package.