If you are saving for your grandchild's college education, you may want to consider the flexibility, low cost and tax advantages of New York's College Savings Program. There are no restrictions based on age, income or state of residence. Anyone - a parent, grandparent, relative or friend -can open an account for a future college student.

You can open an account with as little as $25. Additional contributions can be made by check or if you prefer, you can save $25 each month through automatic deposit from a bank account. If your employer offers payroll deduction, the minimum contribution is only $15 per pay period. Even small amounts of money saved regularly over time can go a long way towards making the dream of a college education come true.

The Program also offers some nice tax advantages. New York taxpayers can deduct the full amount of their contributions, up to $5,000 per year, from their New York taxable income. A husband and wife can each deduct up to $5,000 per year for a total deduction of $10,000 for contributions to their own separate accounts. Account earnings are exempt from New York taxes and federal taxes are deferred.

Contributions to your account will be invested in stock, bond, and money market funds according to the age of your grandchild. As your grandchild gets closer to college age, the mix of investments becomes more conservative. After the account has been opened for three years, you can start using the money to pay for the qualified higher education expenses of your grandchild. As the account owner, only you can authorize withdrawals. If your grandchild decides not to go to college, you can change the beneficiary and use the money to help another immediate family member attend college.

Governor George E. Pataki's Higher Education Services Corporation and State Comptroller H. Carl McCall jointly oversee the Program. With more than 91,000 accounts and over $440 million in assets, the New York's College Savings Program is considered one of the best in the nation.

Call 1-877-NYSAVES or visit www.nysaves.org to find out why New York's College Savings Program is one of the best ways to save for a child's college education or to obtain a program brochure. Accounts are opened by completing an Enrollment Form and Tuition Savings Agreement. All of these documents should be read carefully before opening an account. Account value will fluctuate based upon a number of factors, including general financial market conditions. Federal and State tax benefits are subject to certain limitations. You should consult your tax advisor. Investments are made through Teachers Personal Investors Services Inc., as distributor.


PURPLE HEART VETERANS FINALLY PRIORITIZED

Veterans awarded the Purple Heart for combat wounds will find it easier to get medical care from the Department of Veterans Affairs (VA).

Under new VA rules, Purple Heart veterans now have a higher priority for health-care services than before. Also, they don't have to make out-of-pocket payments, technically known as "co-payments," for either inpatient or outpatient VA medical services.

The new rules authorize VA to reimburse Purple Heart recipients for any medical co-payments made to VA for care given after November 29, 1999. Purple Heart recipients are still responsible for making co-payments of $2 for each 30-day supply of prescription medicine given to outpatients for conditions that are not related to military service.

"We urge Purple Heart recipients who have medical conditions they believe are related to their military service to contact VA for help in filing a claim," said Joe Thompson, VA's Under Secretary for Benefits.

By itself, the Purple Heart doesn't qualify veterans for VA disability compensation. That requires a separate screening process. Nor does the Purple Heart affect eligibility for long-term nursing care.

VA's new eligibility rules for Purple Heart recipients were approved last year by Congress in the Veterans Millennium Health Care and Benefits Act. The change affects the seven-step priority system that Congress set up for VA health care.

It moves Purple Heart recipients who were in VA's priority groups 4 through 7 into priority group 3. Purple Heart recipients who qualify for priority groups 1 or 2 by virtue of service-connected disabilities will stay in those higher groups.

Anyone claiming benefits as a Purple Heart recipient must prove that they have been awarded the decoration. VA will accept the following as proof: Defense Department Form 214, discharge papers, military personnel records, orders or award certificates.