**Resources for Post-Secondary Education Planning and Asset Purchase**

This reference sheet supplements "Strategies for Post-Secondary
Education," found in the *AFI Grantee Handbook.* It provides additional
information and suggestions on how best to assist participants saving
for post-secondary education. If you do not have the February 2005
edition of the *Handbook* and would like the first tip sheet, contact
the AFI Resource Center at <AFIProgram@acf.hhs.gov> or call
202-401-4626, and Resource Center staff will send you a copy.

**Contents**

**Strategies for Post-Secondary Education**

1.  Financial Education and Asset-Specific Training for Education Savers

2.  Strategies for Assisting AFI Participants Already Enrolled in a
    Course of Study

3.  Tips for Helping Participants Change their Asset Goal from
    Homeownership or Business Ownership to Education

4.  Education Plans -- an Important Tool for AFI Project Participants

5.  Where to Turn for Further Assistance with Education Counseling

6.  Recruiting Participants for Education IDAs

7.  Definitions of Eligible Educational Institutions

8.  Definitions of Eligible Educational Expenses

**Strategies for Post-Secondary Education**

**1. *Financial Education and Asset-Specific Training for Education
Savers ***

AFI Projects may choose how they treat preparation for post-secondary
education purchase or the equivalent of asset-specific training for this
purpose. Currently, some projects provide a module on post-secondary or
additional training and education in their general financial education
sequence. Such modules often include information on choosing schools,
finding other financial support for education, or how to learn what
skills or certifications are in demand and will lead to increased
earnings in the local market. Other projects are using Education Plans
\[Appendix 3 for examples\], similar to business plans, where the
participant spells out educational and career goals, along with the
resources and time needed to complete a course of study. Whether
participants are advised in these matters by project staff or by others,
such as school or college career advisors or financial aid officers,
also varies.

Learning about financial aid, potential loans, and careers involved in
education planning and purchase offers opportunities to develop and
exercise financial knowledge. For example, student loans and the
repayment record become an important part of a participant's credit
record. We encourage all AFI Projects to include guidance for
participants on securing and reviewing a credit report, including for
those saving for post-secondary education. This information is as
important for education savers as it is for potential home or business
purchases.

Participants who are in default with students loans can make addressing
this barrier part of their credit repair plan. They may restore their
eligibility by establishing and adhering to a repayment plan. Many
employers and industry sectors use credit status as a criterion in
hiring. They view a stable credit history as a predictor of stable
employment. In addition, some sectors, such as financial services,
security and law enforcement, and healthcare, are especially cautious
about hiring persons with poor credit.

**2. *Strategies for Assisting AFI Participants Already Enrolled in a
Course of Study ***

Adults may be more likely to enter an AFI IDA program with an education
or career track in mind. They may already be enrolled. In such
situations, AFI Projects should review with the participant the
expectations concerning earnings associated with the training and career
path to maximize long-term asset building and self-sufficiency. General
program requirements, local and AFI-related rules and frameworks, of
course, apply.

Older students may also need supportive services or resources to enable
them to manage child care, transportation or other matters while in
school and working simultaneously. Some institutions, especially
community colleges, have extensive support services, ranging from local
transportation networks and on campus childcare, to financial counseling
and legal assistance. Identifying additional resources to pay for school
is likely to be helpful as well.

**3. *Tips for Helping Participants Change their Asset Goal from
Homeownership or Business Ownership to Education***

Grantees should be sure IDA participants have realistic goals when they
enroll and begin saving. It may still happen, however, that a
participant is unable to acquire the asset originally targeted,
especially in the case of home ownership. Further, the need to adjust
goals should become apparent well before the actual purchase target
date. Many grantees have found that shifting to an education purchase is
the least difficult option in such circumstances. Nevertheless, the
primary interest should still be to maximize the benefit of the
educational purchase rather than it being just a default to use the
money. In some cases, it might even be better for participants simply to
take their own savings and use them for other purposes, such as paying
off debt. Project staff may help participants make decisions on how to
use the savings and match in several ways, such as:

-   Working intensively, directly or with educational partners, to find
    an educational option that complements the participant's interests
    and aptitudes as well as offering a strong possibility of increased
    earnings or advancement with a current employer or industry sector.
    \[see Education Plans below\]

-   Transferring the benefit to an eligible dependent: The savings and
    match may be helpful for older minors who are planning on
    post-secondary education or training, provided the funds can be
    spent before the end of the project period.

-   Changing policy on when purchase is required: If it fits with the
    funding period, grantees who have the flexibility could consider
    allowing more time, for example an additional year or two after
    meeting the savings goal for the purchase, if the participant could
    realistically resolve the barrier to the original goal, such as poor
    credit for home ownership.

**4. *Education Plans -- Important Tools for AFI Project Participants***

Education Plans, as used by several AFI Projects, are similar to
business plans. They help the participant and the AFI Project in several
ways, including the following:

-   Education Plans prompt participants to think through their
    educational goal. Plans may go far beyond a participant's interests
    and aptitudes to include a long-term projection of what the
    educational goal can lead to. For example, if someone wants to study
    computer graphics, the plan may also ask what kinds of careers
    derive from these skills, what earnings and growth may be expected,
    whether these skills are in demand in the local area, which
    employers may be seeking such skills, how much time will be needed
    to achieve a degree or certification, whether other resources will
    be needed and where to find them, how to cover ongoing living
    expenses while studying and working, and the like. Education Plans
    may help participants choose the eligible institution wisely when
    there are several offering similar training or certification: cost,
    time, scheduling flexibility, accessible location, reputation with
    employers, and other factors come into play in the decision on where
    to enroll.

-   Education Plans may help a participant who is changing goals, for
    whatever reason, to get the most benefit by exploring a field
    thoroughly rather than just jumping to something else. He or she may
    find a whole new career path or ways that existing employment may be
    a platform for advancement.

-   Staff may use Education Plans to project and manage withdrawals. The
    flexibility associated with AFI support of post-secondary education
    often results in multiple withdrawals for tuition, books, fees, and
    equipment; and these withdrawals may take place over several
    quarters, semesters, or other stages of study. It will help the
    participant and the program to keep track of amounts and uses if
    they are projected in a plan. Like a business capitalization plan,
    an Education Plan can outline likely, allowable, and necessary
    expenses and various stages and saves staff time while providing a
    strong resource for withdrawal documentation.

Attached are two examples of Education Plans developed by AFI grantees,
one developed by the Central Vermont Community Action Council and one
used by United Way Community Services in Detroit. Both cover the same
territory but use different formats. The Education Plans are also used
as part of the withdrawal procedure.

**5. *Where to Turn for Further Assistance with Education Counseling***

There are a number of additional resources for career and financial
information. Which ones are available in a specific area may vary.

**[Career Information:]{.underline}**

-   **Career Advisors/counselors:** The educational institution is
    likely to have advisors who specialize in specific fields or
    vocations. They should also be knowledgeable about the earnings
    ranges associated with different certifications or fields. Often
    career advisors are located in career counseling centers, but they
    may also be found in departments or divisions in some cases.
    Students who are enrolled may use these services; whether potential
    students have access may vary.

-   **Employment Services:** All localities should have an employment
    service operated by a local workforce board as part of the U. S.
    Department of Labor's employment and training system. Often these
    are called One Stops, but they may have different names, depending
    on the state. Grantees may go to the state's labor agency website to
    find local contacts, and to find specific information on careers,
    sources of training and education, projected occupational demand for
    the locality, and other information. The nearest "One Stop" can also
    assist prospective students in identifying demand occupations and,
    in some cases, help the student assess his or her aptitude for
    specific occupations. The may have funds for training in specific
    fields.

-   **Alumni:** Many institutions have formal alumni associations that
    students may contact for information on demand for particular skills
    or typical wages and earnings with specific certifications or
    degrees. Alumni associations may also represent valuable networking
    resources that participants can use throughout their careers for
    advancement.

**[Financial Information]{.underline}**

-   **Federal Financial Aid:** Students or applicants can go through the
    financial aid offices of their educational institutions. They may
    also go to the U.S. Department of Education website to get the
    universal application for federal aid, called the Free Application
    for Federal Student Aid (FAFSA) and for directions on how to
    complete it. Participants can also download The Student Guide to
    Financial Aid. The website is www.fafsa.ed.gov.

-   **State Financial Aid:** Most states have some additional funds,
    outside of tuition savings plans, available for low-income students,
    especially those attending public institutions in state.
    Participants may contact the state Department of Education or look
    for financial aid information on the department's website. Community
    colleges also have information on this topic.

-   **Industry-based Aid:** Many industry sectors have local, state or
    national associations that provide some financial support, usually
    for persons already in the field. Search the Internet by sector for
    relevant organizations. Examples include the construction industry,
    healthcare, and engineering. Sometimes industry sectors also have
    culturally based organizations that assist persons just entering the
    field. There are a few Federal aid programs that target specific
    professions, such as nursing.

-   **Employers:** Be sure participants know whether their employer
    helps to fund education or training for existing employees. Many
    employers will reimburse for tuition, fees or other costs; sometimes
    the amount is on a sliding scale linked to actual grades. A few will
    put some money up front. Some have policies that grant automatic pay
    increases or create eligibility for promotion upon completion of a
    degree, certification, or specific short-term training.

-   **Other Sources:** There are a number of national organizations that
    focus on financial aid for post-secondary education. Be wary,
    however, of sites offering to find scholarships for a fee. A free,
    legitimate site, recommended by the U.S. Department of Education, is
    [www.fastweb.com](http://www.fastweb.com/). Students should use
    their financial education to examine and compare any scholarship,
    grant or loan offers they may receive from any source.

***6. Recruiting Participants for Education IDAs***

There are a number of ways to focus recruitment and enrollment efforts
for post-secondary goals, including but not limited to:

-   Developing a strong relationship with the eligible institutions in
    your area that serve a large proportion of low-income students who
    are likely to be eligible for the program. Some may have outreach
    counselors, who can work with students considering enrollment at
    their institution. These outreach counselors or academic counselors
    are also in a position to refer students to you who are already
    enrolled or who have already focused their interests. They may also
    be able to help you collect necessary documentation.

-   Using relationships with TANF agencies that may have persons who are
    working but still TANF eligible for other supports and who need
    additional training to advance another step toward self-sufficiency.

-   Contacting local adult education programs, such as GED programs or
    continuing education programs associated with public or private
    educational institutions.

-   Consulting with the human resource departments of area employers who
    have many entry-level workers whom they would like to advance if
    they had the necessary skills. (You'd be saving them money on
    training and helping them to reduce turnover.)

-   Partnering with public employers, such as cities and states, who
    often have many low-wage workers who would be eligible. Be careful
    about the assets component in determining eligibility in these
    cases, since older workers could also have savings or pension
    resources that render them ineligible by AFI standards.

-   Cultivating a relationship with employment centers or One Stops that
    may be able to refer persons whom they cannot fund for training but
    whose income and assets may mean they are eligible for AFI. One
    Stops sometimes can pay for short-term training in specific fields
    and for their targeted populations, such as TANF recipients or
    exoffenders.

-   Educating the appropriate staff of local school systems. Some
    teachers may qualify for AFI, but there may also be classroom aides
    and all kinds of support staff who are eligible. Take a similar
    approach with law enforcement agencies and transportation boards.

-   Reaching out to campus-based centers that focus on adults, such as
    women's centers with programs for workforce re-entry, or student
    associations for commuting or older students, or campus daycare
    centers that serve students or staff.

-   Continuing to work with faith-based and community-based
    organizations that serve eligible populations and neighborhoods,
    especially those focused on employment. They may be able to sequence
    eligible individuals from their initial placement and retention to
    advancement by means of additional skills acquired with an IDA.

9.  ***Definitions of Eligible Institutions*.**

> Eligible educational institutions are those that fit the definitions
> of an institution of higher education given in the Higher Education
> Act of 1965, sections 101 and 102, or the Carl D. Perkins Vocational
> and Applied Technology Education Act. The actual language is included
> in Appendix 1 of this resource sheet, but the basic point is that
> institutions are eligible to receive Federal financial aid funds, such
> as Pell grants, or to work with Federal Student loans, such as Direct
> Student Loans, and other Federal sources to support the costs of
> attendance.
>
> Note that many proprietary institutions fit the definitions, as do
> some, but not all, institutions that operate via distance learning and
> correspondence training, and some, but not all, foreign institutions.
> If you have any doubt about whether an institution is eligible, ask
> the business office to confirm whether they receive Federal financial
> aid funds or check on their accreditation at
> <http://ope.ed.gov/accreditation/Search.asp>.

10. ***Definitions of Allowable Educational Expenses***

> The specific language describing eligible educational expenses from
> AFIA is included in Appendix 1, but basically there are two conditions
> that must be met. The first is that expenses must be related to
> *enrollment at an eligible educational institution*. The second is
> that the expenses be *required* for enrollment or attendance or for
> fees, books, supplies and equipment for courses of instruction at an
> eligible educational institution. So, for example, someone enrolled in
> auto repair training through a union program may not be able to use
> the AFI funds for tuition, fees or tools; but someone enrolled in auto
> repair at an accredited community college or vocational-technical
> school would be able to use AFI funds. The provider of the training
> must be an eligible institution as must the recipient of the funds. It
> can happen that the necessary equipment purchased, such as a computer,
> is purchased from an eligible educational institution different from
> the eligible educational institution the participant is attending.

**Appendix 1: AFIA Language on Educational Institution Eligibility and
Post-Secondary Educational Expenses**

**Eligible Educational Institutions**

The Act defines eligible institutions in Section 404 (8) (ii) as
follows:

> (ii)ELIGIBLE EDUCATIONAL INSTITUTION.---The term "eligible educational
> institution" means the following:

(l) INSTITUTION OF HIGHER EDUCATION.---An institution described in
    section 101 or 102 of the Higher Education Act of 1965.

> (ll) POST-SECONDARY VOCATIONAL EDUCATION SCHOOL.---An area vocational
> education school (as defined in subparagraph © or (D) of section
> 521(4) of the Carl D. Perkins Vocational and Applied Technology
> Education Act (20 U.S. C. 2471(4))) which is in any State (as defined
> in section 521 (33) of such Act), as such sections are effect on the
> date of enactment of this title.
>
> **[Institutions of Higher Education]{.underline}**
>
> The Higher Education Act itself is very long with many clauses and sub
> clauses. To verify eligibility for an institution of higher education,
> go to <http://ope.ed.gov/accreditation/Search.asp> and type in the
> name of the institution. You do not need to fill out any of the other
> parameters.
>
> **[Vocational Education Schools]{.underline}**
>
> Postsecondary vocational education schools are those defined in
> subparagraph C or D of section 521(4) of the Carl D. Perkins
> Vocational and Applied Technology Education Act (20 U.S.C. 2471(4) as
> sections are in effect on the date of AFI enactment..
>
> The specific definitions found there as follows:
>
> "4) The term 'area vocational education school\' means\--
>
> '(A) a specialized high school used exclusively or principally for the
> provision of vocational education to individuals who are available for
> study in preparation for entering the labor market;
>
> '(B) the department of a high school exclusively or principally used
> for providing vocational education in not less than 5 different
> occupational fields to individuals who are available for study in
> preparation for entering the labor market;
>
> '(C) a technical institute or vocational school used exclusively or
> principally for the provision of vocational education to individuals
> who have completed or left high school and who are available for study
> in preparation for entering the labor market; or
>
> '(D) the department or division of a junior college, community college
> or university operating under the policies of the State board and
> which provides vocational education in not less than 5 different
> occupational fields leading to immediate employment but not
> necessarily leading to a baccalaureate degree, if, in the case of a
> school, department, or division described in subparagraph (C) or this
> subparagraph, it admits as regular students both individuals who have
> completed high school and individuals who have left high school....."

Again, you could ask the institution's business office to verify that
they are eligible to handle Federal student aid. If so, they would have
a Federal School Code.

**Post-Secondary Educational Expenses**

The Act defines eligible expenses broadly as follows in section 404
(8)(i):

> POST-SECONDARY EDUCATIONAL EXPENSES.---The term "post-secondary
> educational expenses" means the following:
>
> \(l\) TUITION AND FEES.---Tuition and fees required for the enrollment
> or attendance of a student at an eligible educational institution.
>
> (ll) FEES, BOOKS, SUPPLIES, AND EQUIPMENT.---Fees, books, supplies,
> and equipment required for courses of instruction at an eligible
> educational institution.

Note that, as with all asset purchases, funds must go to the third
party, in this case, an eligible educational institution.

**Appendix 2: Additional Resources for Post-Secondary Education Planning
and Asset Purchase**

**1. Federal Financial Aid**: The FAFSA (Free Application for Federal
Student Assistance) site offers information on the various kinds of
Federal financial aid available and enables the student to fill out the
application online. Go to [www.fafsa.ed.gov](http://www.fafsa.gov/).
About 10 days after submitting the application, the user then receives
in the mail a report on eligibility for financial aid and the types of
aid in a Student Aid Report. A paper application may take two to three
weeks. Often, institutional financial aid offices allow applicants to
use on-site computers if needed for this step. The FAFSA site also
provides the lengthy list of required documentation to proceed to
collect aid, as well as links to a vast array of additional information
on Federal student aid.

A related site, accessible from the FAFSA site or directly, is the PIN
site: [www.pin.ed.gov](http://www.pin.ed.gov/). Getting the "PIN" is a
first step in negotiating the Federal financial aid system or in filling
out the FAFSA online.

Information on Federal educational assistance may also be found at
[www.ifap.ed.gov/IFAPWebApp/index.jsp](http://www.ifap.ed.gov/IFAPWebApp/index.jsp),
a site geared toward education professionals. From here you can see
calendars for financial aid deadlines and order publications on
financial aid and other counseling topics.

*Note: Participants should be advised to apply for financial aid of any
kind, state or Federal, well ahead of the time for enrollment. December
is not too early for fall enrollment.*

**3. *Educational Opportunity Centers*** (EOCs) focus on helping
first-generation, low-income students access post-secondary education.
To find an Educational Opportunity Center near you, go to
[www.neoca.freeservers.com](http://www.neoca.freeservers.com/), and
click on the directory of Educational Opportunity Programs. This will
take you to a PDF file that lists 139 local institutions that host EOCs.
One of many organizations in this group is the Vermont Student
Assistance Corporation. Their site,
[www.vsac.org](http://www.vsac.org/), also has many helpful tools for
students and those who advise them, including career exploration tools
for adults (and youth), as well as a variety of counseling materials
tailored for students with multiple responsibilities and links to other
useful sites.

**4. Scholarships**: Information on a wide variety of scholarships is
available at [www.fastweb.com](http://www.fastweb.com/), a site
recommended by the Department of Education. Here, applicants fill out a
general questionnaire and subsequently receive emails about scholarships
for which they may be eligible. Available scholarships may be based on
many factors: financial need, academic performance, geography, area of
interest, or family name.

**5. Career Counseling:** For information on careers, there are many
sites, both public and commercial. For data on the local job market and
projections for demand in specific industries or skills, go to the U.S.
Department of Labor, [www.dol.gov](http://www.dol.gov/). Among the links
there is the Occupational Outlook Handbook, which gives details on
projected labor market demand, the skills needed, and the likely
earnings associated with particular occupations. Resources for specific
geographical areas are also accessible from this site. From the Labor
site, you can also use the "jobs" link to America's Job Bank and USA
Jobs, which post openings. The local One Stop Employment Centers,
located in cities and regional offices in rural areas, also provide
detailed information on local employment conditions, prevailing wages,
and projected employer needs, in addition to specific job search
assistance. They may also offer interest and aptitude assessments on
site or online. State Department of Labor sites offer information that
allow students and advisors to compare similar degree or certificate
programs offered by several different institutions. Participants can
look at the number who enrolled in a particular course of study, how
many completed, got related employment and average wages.

**Appendix 3: Sample Educational Plans**

1.  **Central Vermont Community Action Council**

2.  **United Way Community Services of Detroit**