The Daily News

Because the month of September signifies the beginning of a new academic year, the nation's only state-owned bank — Bank of North Dakota — is recognizing it as College Savings Month and encourages families to map out and implement a plan to help finance their child's college education.

A North Dakota college graduate has an average of $22,000 in student loans, said Lance Hill, spokesman for the Bank of North Dakota. The state's 529 program, College SAVE, can assist families in saving for higher education and reduce the need for borrowing.

"North Dakota schools are fairly economical compared to other regions in the country, but that's still a lot of debt to come out of school with," Hill said.

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College SAVE is an account that grandparents, aunts and uncles, and parents can contribute to at any time in which all earnings are exempt from federal and state income tax. The earnings are simply required to be used for higher education expenses, such as tuition and room and board fees for in-state students.

College SAVE also includes a state matching grant, which allows account owners to receive up to a $300 match from the Bank of North Dakota.

"By saving in advance for educational goals, families can reduce their students' debt load substantially after graduation," said Eric Hardmeyer, Bank of North Dakota president.

Although the North Dakota State College of Science is a promoter of the state 529 higher education savings program, Shelley Blome, assistant director of Enrollment Services, said she doesn't see a lot of students enrolled. Ninety-two percent of NDSCS students, however, do receive some type of financial aid, with the average loan amounting to $6,735.

Blome said students typically start by filling out the Free Application for Federal Student Aid (FAFSA) and then are directed toward other loan options if there are additional unmet needs.

"We have a private loan through the school, otherwise, we offer three or four different alternatives for them, and also the parents can take out a parent loan if they desire," Blome said.

Approximately 25-35 percent of students at NDSCS seek out alternative loans, according to Blome.

Wahpeton and Fairmount High School Career Development Counselor Bobby Jo Jelinek indicated she advises juniors and seniors to apply for scholarships to help reduce the amount of post-graduation debt.

"A lot of students seem to think you have to be at the top of your class, and some schools are geared that way, but many others are not," Jelinek said. "A lot of students have summer employment and they'll save that way too."

A January meeting, held each academic year, is the most effective way parents and students can become informed of financial aid as high school counselors and NDSCS representatives attend to help answer questions.

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