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Paying for Graduate School
Paying for graduateschool can be achallenge. While thebank of Mom andDad may havehelped fund an un-dergraduate educa-tion, students con-sidering graduate school are more likely to beon their own financially. Here are some sug-gestions on where to look for financial help.
Loans, loans, loans
According to the College Board, the averagegraduate student funds 69% of his or her edu-cation costs with loans. Would-be studentscan borrow from private lenders or the federalgovernment. Uncle Sam's three major loanprograms--all available to graduate students--are the subsidized and unsubsidized Staffordloan, the subsidized Perkins loan, and theunsubsidized PLUS loan. "Subsidized" meansthe government pays the accruing interestduring school and deferment (loan postpone-ment) periods; such loans are only availableto students who demonstrate financial need.In 2007, graduate students may be eligible toborrow up to $8,500 in subsidized Staffordloans, up to $12,000 in unsubsidized Staffordloans, and up to $6,000 in Perkins loans.Currently, the interest rate on new Staffordloans is fixed at 6.8% and 5% for Perkinsloans. And under the PLUS loan program,graduate students can borrow up to the fullcost of their education (minus any other finan-cial aid received) at a current fixed interestrate of 8.5%. To be eligible for federal studentloans, you must be attending graduate schoolon at least a half-time basis. Then you mustfile the government's aid application, calledthe Free Application for Federal Student Aid.You can file it online at www.fafsa.ed.gov.Students can also obtain loans from banks or other private lenders, though such loans typi-cally carry higher, variable rates of interest.
Scholarships and grants
Most scholarship and grant aid at the gradu-ate level comes from the school itself. How-ever, this aid is often awarded on the basis of merit rather than need. To investigate, contactthe school's financial aid office. Many scholar-ships and grants (like teaching fellowships or research grants) are awarded at the depart-mental level, so your chances might dependon what subject area you'll be studying.
Employer educational assistance
Some companies offer tuition reimbursement,which can be a great source of "free money."But there are often strings attached, like main-taining a certain grade point average or stay-ing with the company for a number of years.The first $5,250 of employer-provided tuitionbenefits is exempt from federal income tax.
Education tax benefits
Three federal education tax benefits mighthelp defray your expenses in 2007:
The Lifetime Learning credit 
is worth up to$2,000 for tuition and fees. To qualify, your income must be below $57,000 (single) or $114,000 (married filing jointly).
The deduction for qualified higher educationexpenses
lets you deduct $4,000 for tuitionand fees if your income is below $65,000(single) or $130,000 (married filing jointly). If your income is more than that but less than$80,000 (single) or $160,000 (married filing jointly), you can deduct $2,000. This deduc-tion is only available for 2007, and it can't betaken in the same year as the Lifetime credit.
The student loan interest deduction
lets youdeduct up to $2,500 of student loan interesteach year. To qualify, your income must bebelow $70,000 (single) or $140,000 (marriedfiling jointly).For more information, see IRS Publication970, Tax Benefits for Education.
gvandyke@synergyfinancialgrp.comwww.synergyfinancialgrp.com
Synergy Financial Group
George Van Dyke401 Washington Ave #703Towson, MD 21204410-825-3200410-530-2500 (cell)
The purpose of this newsletter is togive you interesting tidbits ofinformation that you may find ofinterest. The hope is that some ofwhat you read here will spur you totake action, help you to simplifysome aspect of your financial life,or help you to avoid a future pitfall!Alert:REAL ESTATE FALLOUT - 13% ofadjustable rate mortgages takenout during the last 3 calendar years(2004-06) are projected toultimately end in foreclosure(source: First American CoreLogic,Wall Street Journal).BIGGER THAN MOST - To rank inthe top 1% of Americanhouseholds based upon net worth(including the value of a family'sprimary residence) requires a networth of $6 million or more (source:Federal Reserve, WSJ)
May 16, 2007
In this issue: 
Paying for Graduate SchoolDon't Let This Year's FamilyVacation Wreck Your BudgetModifying a Home forIndependent LivingAsk the Experts
 
Don't Let This Year's Family Vacation Wreck Your Budget
With today'sbusy lifestyles,many peopleview a nicefamily vacationevery year asan entitlement,even if it meansgoing into debt to pay for it. They rationalizethat they work hard all year and deserve it, or they become wistful after hearing about thefancy vacation plans of friends, co-workers, or neighbors. Sure, everyone needs a break,and parents naturally want their kids to havefond memories of endless summer days spentromping on the beach, but how can you pre-vent your vacation costs from spiraling out of control?
Can you really afford it?
First, assess honestly whether you can affordthe vacation you're thinking about. If you haveto borrow most of the money to pay for it, thenyou probably can't afford it. If you do borrow topay for your trip, you might find yourself finan-cially strapped later on if the roof starts leak-ing or one of the kids needs braces. At thevery least, you'll inherit the stress that comeswith trying to pay off that debt.
Think outside the vacation box
Not being able to take a dream vacation does-n't mean you can't take a vacation at all. Eve-ryone needs time away from their job andnormal family responsibilities to recharge. If you simply don't have the budget for the vaca-tion you want, think of other creative ways tospend your time off. Here are some ideas:
•
Try a few long weekends instead of oneor two consecutive weeks. Perhaps youcan afford a couple of nights at a hotel or bed and breakfast instead of all week. Or maybe you can camp for a few nights at astate or national park, where rates arevery reasonable.
•
Vacation from home. Take day trips into anearby city and visit museums, restau-rants, and other attractions. Or head outto the country for a hike, swim, and pic-nic. Doing things out of the ordinary, likeeating breakfast three times a day or set-ting up a tent in the living room to playgames and sleep in, can be a big hit withkids. Young kids usually just like beingwith their parents and are mostly happy togo along with what you have planned.
•
Let older kids pick an activity. It might notbe Disney World
®
, but what about a trip toan amusement or water park, a day or two at the beach, an afternoon canoeingor fishing, a movie and dinner outing, or aballgame? Instead of lamenting the factthat you can't take an exotic vacation,focus on what you can do and enjoy thetime with your family.
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Consider house swapping. If you're will-ing to trade houses with other like-mindedfamilies to save on room-and-boardcosts, there are several websites whereyou can find more information.
Plan now for next year (or the year after)
It's never too early to start thinking about nextyear, or the year after that. Start saving nowfor that future getaway by making a budgetand seeing where you might be able tosqueeze a few dollars. Then consider openinga separate vacation account for those funds;otherwise, the money may get "lost" in your regular savings account and used for other purposes. Where you put your money willdepend on your time horizon and other fac-tors. A financial professional can help youexamine your options.If you can contribute monthly to your vacationfund, great. If you can't, consider adding smallwindfalls like your tax refund, year-end bonus,or cash from birthdays and holidays. Knowingthat you're setting aside money for a planned"dream" vacation can go a long way to makingyou feel less deprived in the years you canonly afford to stay close to home.And when it comes time to actually planningyour big vacation, keep cost-cutting tips inmind. For example, you might consider lessconvenient flights or a night or two at a lessfancy hotel.
Forget about the Joneses
It's tempting to want to take grand vacationsevery year when everyone else seems to bedoing so. But don't fall into the trap of thinkingthat you or your family will somehow bescarred if you can't. The important thing is torelax in a way that you can afford, and thenenjoy that time with your family. You will havetaught your children an important lesson--howto live a financially sound life, without worryingabout what the Joneses are doing.
Keeping it simple
When asked by onefamily magazineabout their favoritevacation memories,most kids listed thesimple things--eating ice cream, swimming,staying up late, jumping on the hotel bed, fishing, lying in ahammock, picking blueberries. So don't feel bad about keeping thingssimple! 
Page 2
 
Modifying a Home for Independent Living
 
Because many homes aren't designed toaccommodate changing physical needs, it'ssometimes challenging for people with dis-abilities to live independently. But fortunately,homes can be modified to remove barriers toindependence and reduce reliance on care-givers. For older individuals, home modifica-tions can delay or even prevent the need for costly care in a nursing home or assisted-living facility.Improvement options will depend on individualneeds and physical concerns. But here's abroad look at some of the home modificationsthat might help make day-to-day living safer and easier for you or a loved one.
Inside the home
Kitchen
•
Remove cabinet doors to make it easier to see and reach items
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Use turntables inside cabinets to reachsupplies easily
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Lower countertop surfaces and kitchencabinets to make them more accessible
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Install a cook top and a low wall oveninstead of using a range; install an adjust-able mirror over the stove to make view-ing cook top from a wheelchair easier 
Bathroom
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Install a raised toilet with attached hand-rails (portable seats are also available if replacing the toilet is impractical)
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Cover sink handles with rubber grips tomake it easier to turn the water on and off 
•
Install grab bars or poles near the toiletand shower 
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Replace bathtub with low-thresholdshower 
Other living areas
•
Replace door knobs with lever-style han-dles, or install door knob covers that areeasier to grip and turn
•
Add nightlights to prevent nighttime falls
•
Remove throw rugs and thick doormats;replace padded carpet with thinner, level-loop carpet to prevent tripping and facili-tate wheelchair or walker navigation
•
Widen doorways, remove doors, or installspecial hinges that allow doors to openwider 
•
Install a ceiling lift device that will allowindependent movement around the home
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Install a stair lift or an in-home elevator 
Outside the home
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Apply nonskid surfaces to garage floors,decks, stairs, and walkways
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Install handrails on both sides of stairs
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Replace standard exterior lights withmotion-sensitive or photo-sensitive lights
 
•
Construct an entrance/exit ramp
Paying for home modifications
Many home modifications are simple and in-expensive, but if you need to remodel exten-sively or hire a contractor, you may need helppaying for improvements. Fortunately, finan-cial help is available from public and privateagencies and charities. For example, statesand communities may offer special financingor grant programs, and charities often organ-ize repair or improvement projects. To findhelp available in your community, contact your local Area Agency on Aging through the na-tionwide Eldercare Locator at (800) 677-1116,or through their website, www.eldercare.gov.
Tax breaks
If you itemize deductions on your federal in-come tax return, you may be able to deducthome improvements that are primarily for medical care and prescribed by your doctor.However, you can deduct only the amountthat is more than 7.5% of your adjusted grossincome. For example, if your adjusted grossincome is $70,000, then you would be able todeduct expenses that exceed $5,250. Ex-penses that generally qualify include the costof installing ramps, lowering or modifying cabi-nets, and adding grab bars. If an improvementincreases the value of your home, it may beonly partially deductible. For more informationand a list of deductible expenses, see IRSPublication 502, Medical and DentalExpenses.Some states also offer tax breaks to their resi-dents, including sales tax exemptions, deduc-tions, or tax credits; local property tax creditsor abatements may be available as well. For more information, talk to a tax professional.
 
Daily living aids and assistive devices
People often don't realize how many  products are availableto help people maintaintheir independence.Here are just a few that can be found at  pharmacies and medical equipment suppliers:
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 Amplified phones
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Large buttonremote controls
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Lift chairs
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Shower or tub chairs
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Reachers that grasphard-to-pick -upitems
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Optical magnifiers that  project text onto aTV screen
•
Personal emergency responsesystems
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