Students Rely More on Scholarships and Grants, Less on Savings to Finance College

OMAHA, Neb.--([ BUSINESS WIRE ])--Over the last decade, college costs have increased 22 percent, with the average cost of attending a four-year, public school totaling more than $80,000.* Combine that with a struggling economy and ita�s no wonder more teens today plan to rely on scholarships or grants to pay for school.

"Sitting down with your child and developing a plan to pay for college is a great opportunity for parents to teach financial responsibilities to their children."

According to a recent [ survey ] released by TD Ameritrade Holding Corporation (NASDAQ: AMTD), 60 percent of todaya�s teens expect to pay for at least part of college through scholarships or grants, compared to 37 percent of adults who relied on the same when they went to college.

Teens are also relying less on savings (20%) to foot the bill. While 25 percent of todaya�s teens said their parents have a 529 College Savings Plan in place to help with education expenses, the majority of teens (66%) and adults (54%) alike have never even heard of such a plan.

"A tough economy impacts everyone a" not just those who are nearing retirement, but those who are just starting out as well,a said Lule Demmissie, managing director of investment products and retirement at TDAmeritrade, Inc., a broker-dealer subsidiary of TD Ameritrade Holding Corporation. aFaced with rising tuition costs and potentially less means, getting a head start on saving for college has never been more important.a

For parents with small children, saving now using a plan such as a [ 529 College Savings Plan ] or [ Coverdell Education Savings Account ] can help them prepare for when the child becomes a college-bound teenager. But for those looking to subsidize college costs today, Demmissie suggests looking at the following resources:

Research available scholarshipsa" While applying for scholarships takes a little research and time, taking advantage of online resources like [ www.scholarships.com ] can help identify scholarship opportunities and save you money down the road.

Explore student loan opportunitiesa" Sites like the U.S. Department of Educationa�s Federal Student Aid (FSA) website [ http://www.fafsa.ed.gov/ ] offer parents and students preparing for college financial resources that are available through the U.S. government. FSA also includes explanations on the different federal student aid programs that are available a" and not just for low-income students.

Take advantage of work-study programsa" One overlooked opportunity for college funding is student work-study programs. Work-study programs are determined by the federal government and are often needs based, so apply early since funding for these programs is often limited and on a first-come, first-served basis. The application is part of the Free Application for Student Aid (FAFSA).

aOne way to handle rising tuition costs is to have a good savings strategy in place,a adds Demmissie. aSitting down with your child and developing a plan to pay for college is a great opportunity for parents to teach financial responsibilities to their children.a

Parents looking to learn about education savings can visit TDAmeritradea�s college planning [ website ] to determine which of the following savings plans might be right for them:

AMTD-G

Survey Methodology
These results are based on a survey conducted by ORC International of Princeton, New Jersey, on behalf of TD Ameritrade Holding Corporation. Six hundred ninety one (691) adults who are age 20 to 59 along with 304 teenagers age 14-19 participated in a telephone survey conducted May 19-23, 2011.Survey participants across the country were asked to share their views on how the current economic environment has affected their lifestyle and outlook. The margin of error among the adults 20-59 in this survey is 4%; among the teenagers, the margin of error is 6%. This means that in 19 cases out of 20, survey results based on 691 respondents will differ by no more than 4 percentage points in either direction from what would have been obtained by seeking the opinions of all eligible U.S. adults who are 20 to 59 years of age. Similarly, the results of the survey among teenagers will differ by no more than 6 percentage points in either direction. ORC International and TD Ameritrade Holding Corporation are separate, unaffiliated companies and are not responsible for each other's products and services.

About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritradea�s (NASDAQ: AMTD) [ technology ], [ people ] and [ education ] to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how a" bringing Wall Street to Main Street for more than 36 years. An [ official sponsor of the 2012 U.S. Olympic Team ], TD Ameritrade has time and again been [ recognized as a leader ] in investment services. Please visit TD Ameritradea�s [ newsroom ] or [ www.amtd.com ] for more information.

Brokerage services provided by TDAmeritrade, Inc., member FINRA ([ www.FINRA.org ]) /SIPC ([ www.SIPC.org ]) /NFA ([ www.nfa.futures.org) ]

* [ The College Board, "Trends in College Pricing 2010a ], Average Estimated Undergraduate Budgets, 2010/2011. Note: Data includes tuition and fees, room and board, books and supplies, transportation and other expenses for a four-year, public school.

Contributing Sources

Market Wire

N@N

Students Rely More on Scholarships and Grants, Less on Savings to Finance College