Health Insurance Will Your Former Employer Cut Back On Benefits

The AARP Bullletin newsletter for July August 2008 had an interesting short article on a growing benefits problem for retirees. They talk about companies that had committed to providing health insurance benefits for their retirees. The Equal Employment Opportunity Commission (EEOC) passed a regulation that permits companies to cut back on health insurance benefits when the former employee becomes eligible for Medicare at age 65. For many retirees Medicare plans are not equal to the benefits through their former employers plans. Understand that although employers have been given the right to modify plans not every employer will do so. However the economic pressure will continue to encourage employers to do so. Make your voice heard to your current and your former employers.

We all need to be planning to take care of ourselves for retirement income, retirement planning, health insurance and Long Term Care needs. The trend for companies to cut back on health benefits and pensions continues. I can help with planning and implementing your financial strategy.

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College Funding with Federal Need Based Programs

Since 2001 College costs have risen by well over 50-60% The most expensive Colleges now cost $50,000 per year in room and tuition. It is obviously higher when you factor in food, transportation, entertainment and books. Ouch!! This is for undergraduate programs.
Need Based Federal loans and grants are available to help pay for college
Federal Money comes in several forms. Grants do not need to be repaid.
Loans need to be repaid unless you qualify for an exeception. The most notable exception is the Public Service Loan Forgiveness Program. Students willing to commit 10 years to a qualifying Public Service Job may be elegible for forgiveness of their remaining federal subsidized student loans. This won't waive private loans or bank loans.
Pell Grants are for Low income students and do not have to be repaid because they are a grant. The maximum available is currently $4,731 per year.
Student going into teaching careers may be eligible for an additional$4,000 per year in federal grants.
Stafford Loans are need based federal loans. The good news is the interest rates are set to drop to 6.0% for the 2008-2009 school year. Maximum loan amounts are on a sliding scale starting at $3,500 for freshman and as much as $5,500 for college seniors. Up front loan origination fees of 2% of the loan amount are required.

One of our many services involves helping families increase their eligibility for need based aid.
www.columbusfinancialplanningpros.com