First Investors Helps Families Prepare for College

New York, NY, August 1, 2008 - It's that time again: Back to School. As thoughts turn to the classroom, First Investors is helping clients find ways to finance their children's higher education.

Many parents of young children are concerned about the costs of higher education. According to the College Boardⁱ, average tuition and fees for in-state students at public four-year colleges and universities in 2007-08 were $6,185—that's 6.6% higher than they were in 2006-07. Average total charges, including tuition and fees and room and board, were $13,589—that's 5.9% higher than a year earlier. And total charges at a private four-year university could set a family back an average of $32,307 per year.

"With the cost of college on the rise, it's understandable that many parents are anxious about how they will be able to afford tuition and other expenses," says Robert M. Flanagan, President of First Investors Corporation. "However, there are college savings vehicles that can help many families make their college dreams a reality."

Two such options are Education Savings Accounts and 529 Plans. Education Savings Accounts (ESAs) were created by the U.S. government as a way for families to fund education expenses. Money within an ESA grows tax-deferred, and can be withdrawn free of federal income tax for qualified education expenses. Money can be withdrawn as early as kindergarten to pay for qualified expenses, including books, uniforms and school equipment. There is a yearly contribution limit of $2,000, and certain income limitations apply.

529 plans are another excellent choice for families that want to save exclusively for higher education. Individuals can open a 529 plan account for any beneficiary, including themselves, and enjoy tax-deferred growth and federally tax-free withdrawals for qualified higher education expenses such as tuition, books, and room and board at any accredited institution. 529 plans are sponsored by individual states, state agencies, or educational institutions and vary depending on the plan and state in which they are available; a financial professional, such as a First Investors Financial Services Representative, can give you further information. Many plans have contribution limits in excess of $200,000.ⁱⁱ

Mr. Flanagan says, "Our representatives are knowledgeable about 529 plans, ESAs and other college funding options and are well prepared to discuss them with their clients."

In addition, First Investors representatives also offer their clients a free College Needs Analysis, a personalized assessment that helps families determine how they can achieve their college savings goals.

First Investors has been serving the needs of investors since 1930. Through the Great Depression, World War II, numerous recessions and bull and bear markets alike, the Company has remained committed to its mission—helping clients reach their financial goals. Today, First Investors offers a wide range of financial products and services, including mutual funds, annuities, and life insurance. The Company prides itself on delivering financial services with a “personal touch.” A First Investors Financial Services Representative is a licensed professional who will take the time to learn about your current financial situation and future goals in order to assist you with your financial needs. .

First Investors Corporation
110 Wall Street
New York, NY 10005-3830
1-800-832-7783
www.firstinvestors.com

529 Plans may be subject to administrative and management fees. If you invest in a 529 Plan outside of your state of residence, you may lose any state tax benefits associated with a Plan offered by your state of residence.

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