PAYING FOR COLLEGE

If your child is heading off to collegein the next few months, here area few do's and don'ts about how topay the tab. First, don't tap your401(k). Money that you take out istaxable, plus it increases your incomeand can shrink any financial packageyour child may be eligible for. Youmay be able to borrow from the401(k), however. Do spend anymoney that's in the child's name forthis year's college costs. Financial aidformulas tap the child's cash stashfirst; the fewer financial resourcesJunior has, the better their chancesfor a better aid package next year. Doapply for financial aid, even if youthink you probably aren't eligible.Your child may at least qualify forlow-rate student loans.