"Where Can I Find Money to Pay for Higher Education?"

For most families, the process of financing a higher education can seem overwhelming. At Irwin Bank, we take the complex and make it simple. Our education financing advisors clearly explain your available options, explore and assist with government programs, then develop an education financing package that's right for you.

Low-interest student loan programs offer federal guarantees and flexible repayment plans. Programs include:

Stafford Loans -- A government loan program that is available through Irwin Bank. The loans are either subsidized, for needy students, where the accumulated interest is paid by the government, or unsubsidized, for middle and upper-middle income families where the student pays all of the accumulated interest.

Perkins Loans -- The U.S. Dept. of Education gives aid directly to colleges, who decide which of their students need it most.

PLUS Loans -- The federal Parent Loans for Undergraduate Students (PLUS) lets parents borrow money at a low-interest rate to cover any costs not already covered by the student's financial aid package. They may borrow up to the full cost of attendance at a college or vocational school. PLUS loans are the financial responsibility of the parents, not the student. If the student fails to make payments on time, the parents will be held responsible. Like the Stafford Loan, PLUS loans can be provided though Irwin Bank.

Private loans help bridge the gap between the actual cost of education and the amount the government allows you to borrow in its programs. If grants, scholarships, and government aid do not meet your borrowing needs, Irwin Bank offers a variety of supplemental borrowing programs, including:

Home Equity Loan -- Use the equity in your home to help cover expenses. The interest rate is low compared to other types of financial institution loans and interest may be tax deductible.

Personal Loan -- Borrow money for a computer, furniture for an apartment, or other school-related expenses.

Loan consolidation combines several student or parent loans into one bigger loan, which is then used to pay off the balances on your other loans. Current students or graduates may choose this option to take advantage of lower interest rates, simplify the repayment process, or reduce the monthly payment amount by extending the repayment plan.

Ask your Irwin Bank representative if loan consolidation makes sense for you.

Grants and scholarships are based on merit or financial need and do not have to be repaid.

Pell Grants -- The size of the grant depends on the undergraduate student's need. In 2000-2001, the maximum grant is $3,300. A Pell Grant follows the student should they transfer to another school.

Supplemental Educational Opportunity Grants (SEOGs -- Federal aid is given directly to colleges, who decide which undergraduate students need it most.

Institutional Grants and Scholarships -- Almost all colleges and universities give their own money in the form of institutional grants and scholarships. Many donors establish scholarship funds through contributing to private and public universities. Students should request a list of institutional grants and scholarships from prospective colleges..

HOPE Scholarships -- Parents of dependent students (under the age of 24), or independent students may receive a tax credit up to $1,500 per year. The credit can be claimed in the first two years of college or vocational school for students enrolled at least half-time.

Lifetime Learning Tax Credits -- This program offers a 20% tax credit for the first $5,000 of tuition and fees paid each year for juniors, seniors and adults returning to college. After 2002, the credit will be increased to cover the first $10,000 paid.

Local or Private Scholarships -- Organizations, foundations or local groups may offer scholarships to academically promising students, minorities, women and disabled students.

IRA Funds -- Parents and grandparents may withdraw Individual Retirement Account funds, without penalty (treated as regular income), to use for higher education expenses of the taxpayer, a spouse, child or grandchild.

Work-Study Programs -- Work-Study students work during the summer or part-time during the school year to help pay for college. Schools help find jobs for students, and the federal government helps pay the salary. Work-Study jobs give students valuable work experience and are often related to the student's classes or future career.

Serve Your Country -- Many opportunities exist for students to pay for all or part of a college education by serving their country during or after their college years. Local armed forces recruiting offices can provide more information.

With the help of Irwin Bank, higher education is attainable.

Because higher education represents an investment in your child's future, no child who wants to continue his/her schooling and is willing to work hard should be prevented by financial need.

It is highly recommended that parents or guardians of high school students meet with an Irwin Bank education financing advisor in the fall of the student's senior year. For more information, or to schedule a free appointment, please call (724) 863-3100.

Yes! You can continue your studies or finance a career change much the same way as younger students.

With the help of Irwin Bank, you can conduct a search for aid and loan programs just like younger, traditional students. There are no age restrictions on eligibility for federal student financial aid, and as an experienced adult, you may have more opportunities for private financing.

"How Can We Afford A College Education For Our Children?"

Saving money is the best way to prepare for meeting the costs of college. Set aside money each month, starting now, to build a college fund. Think about where your child might attend college, how much that type of college might cost, and how much you can afford to save. The earlier you and your child begin saving, the smaller the amount you will have to set aside each month.

"With the help of Irwin Bank, I can save enough to ensure I will be ready for my children's college when they are."

Pennsylvania Tuition Account Program (TAP 529) -- As the costs of higher education continue to rise, financing this major expense is becoming more difficult. TAP 529 provides a solution to help you plan for the future of your children or grandchildren. The program provides a means for tax-deferred growth and tax-free withdrawals for qualified education expenses. There may be no federal or Pennsylvania income or capital gains taxes on these investments. 529 plans are flexible, allowing for investment amounts ranging from $50/month to total contribution limits in excess of $250,000 per account. TAP 529 can also be used to gift and remove assets from an estate while the assets remain under the control of the donor.

Coverdell Education Savings Account -- For children under the age of 18, beginning 2002, $2,000 per year may be deposited in an Education Savings Account in the child's name. Earnings on the savings account are tax free. No taxes will be due upon withdrawal if used for college tuition or private high school, effective until the child reaches 30 years of age. This benefit is phased out for families with incomes above $190,000 - $220,000 and for individuals $95,000 - $110,000. There is no requirement that there be a family relationship to make a contribution. (Grandparents, godparents, friends, neighbors or the child his/herself can contribute). Beginning 2002, corporations and other entities, including tax-exempt organizations, will be permitted to contribute to ESA’s, regardless of income. You may contribute to an ESA and a Qualified Tuition Program in the same year. Beginning 2003, you may make prior year contributions to an ESA if you missed making the current year contribution for that year.

Custodial Accounts -- Saving in your child's name allows you to control the account until their adulthood, while taking advantage of tax savings, because a child's earnings are taxed at a lower rate. College fund custodial accounts can be opened using the following:

Statement Savings Account -- Simple and convenient with free direct deposit. Only $25 opens an account. Passbook Savings -- A great tool for teaching children how to save as they watch their money grow in their very own passbook.

Money Market Account -- Open an IBMA Account with a $1,000 deposit and earn a higher interest rate as compared to Statement Savings and Passbook Savings.

Certificates of Deposit (CD) -- Maturity lengths are available for up to 10 years. Opening deposit amounts vary depending on maturity term.

Investment Products -- mutual funds, stocks, and bonds. Investment products may offer the best return on your money if you begin saving early. For investment assistance in starting your college fund, speak with our UVEST Investment Consultant.

 Revision 05-05

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