European Stars And Stripes (Newspaper) - April 3, 1988, Darmstadt, Hesse                                Page 18 the stars and stripes business news japanese sell off May thrash Buck hint or currency markets in Lac coming week if a massive sell erf by japanese insurance companies materializes. The Dollar dumping which would closely follow Fri Day s Start of the new fiscal year in Japan already has contributed to he Greenback s fall in recent Days As investors. Tearful of being caught with  Dollar holdings fled toothed currencies. Heavy intervention by the Bank of Japan and of her Central Banks in the last week has helped keep he Dollar within trading limits set in december by he group of seven which includes the United Stales Japan West Ger Many France the United kingdom. Italy and  heavy Selling this a cult in Japan could drive the Many by Chancellor of the exchequer Nigel Lawson that mid to my longstanding speculation of a rift on economic policy Between Lawson and prime minister Margaret Thatcher. Lawson s comments id parliament wednesday that the government remains committed to fighting inflation appeared to end uncertainty about the British economic plan and the Pound strengthened in response. The Pound also Rose As raves Lon poured Money into Sterling backed Cash fund with the belief int interest rates now arc Likely to remain stable. Sterling should continue ill rite this week traders in England predict As the markets i to find the cur Rency s upper limit that would rigger intern Rale cull they expert the currency to push through the j 1,90-to-Ihc-Pound Mark. Of j l. Kominicki Buck lower leaving " nth Difini the g-7 will cull choices allow he Dollar to slide further or push the Federal Reserve 10 raise lt.5. Interest rates. A further skill in the Buck could hold negative effects for in Polar Domina cd world financial . Economists say. A Rise in . Interest rates unlikely during the ongoing presidential race could be harmful to he to naive economic growth being enjoyed by the g-7 member countries them selves. The Dollar rallied slightly against the West Ger Man Mark in thin trading before the Slart of the four Day easier weekend. However he Dollar i expected to decline this week due to continued in Case Over America s Trade and Federal deficits. In the past week the Greenback also continued to lose ground against the British Pound which has turned in a Strong performance in he last Mont against most major currencies especially the Mark. The Pound a latest surge was attributed to to Coli paying before you learn the currency markets demand businesses persons and governments need foreign currencies to buy goods and services or investments from other countries. For example a French business buying a tractor Nom an american firm Musl  in dollars. Supply people and institutions sell their excess foreign currencies especially when they believe they can Prohl by Selling them. Companies doing business abroad buy and sell currencies to protect themselves against Buluro changes in Exchange rates Price Exchange rates Are simply the Price o the currency. For instance it used to Cost 260 japanese yen to buy one Dollar. Today s weaker Dollar buys about 130 yen. What traders think of a country s Overall Economy and stability can affect the Exchange rate. At the moment America s huge Trade deficit is helping drive the Dollar Down. History alter world warn other major currencies were Given a fixed value against the Dollar and rarely changed. This system of fixed rates ended in 1973, when Exchange Rales were allowed to Drumgo freely according to Supply and demand. Traders major National currencies Are traded mostly by Telephone and Cable transactions Between Banks and Othar financial institutions in new York London Fra Wurl Tokyo and other major lilies. Profits and losses Are determined by the differences Between the Exchange rates and interest raids among various world financial centers. Intervention Central bands of Nalkus such As the Federal Reserve in the United slates and the Bundesbank in Wesl Germany May intervene in currency markets and buy or sell Large amounts of Cash to create artificial demand or surplus to prop up or lower their currency s value against other monetary units. Innovative College financing coming of age by Vivian Marino a business writer new York Richard and Stephanie Hack have not Only picked out where heir two Small children will be amending College after the turn of the Century they be already paid their tuition in full. The Bethel Park pa., couple bought that peace of mind for about 110,000 through a tuition futures program hat had been offered Lor about three Yean 41 Duqum sue University their Alma mater. Other Young families May wish they had it so easy a they watch tuition increase outpace inflation. The Cost of some private colleges for instance now come close to the median Price of a single family Home around . Financial advisers and educators agree he Only Way a stay out of the poor House yet provide a College bound child with a Good education is to develop a strategic plan As Early As possible. People need to save for a University just As they buy a House said Richard f. Rosser president of the National association of Independent colleges and universities. It was for that reason that pique inc a Small roman Catholic univ Risty near Pittsburgh developed its tuition futures plan in 1985, a program Stephanie Hack believes will Benefit her children Melissa 5, and Brian. 4. About a half dozen other schools established similar programs but some of them As Duquesne did last week have stopped taking new applicants due to unexpectedly High tuition increases and falling interest Rales on Bonds the schools main investment vehicle. Aside from the obvious drawbacks what if a grown child does t want logo to College or to the one already paid for the program seemed like a Good Deal. At Duquesne for instance the family of it 1-year old eligible logo to College in 2005 would have paid a Lump sum of around is,600 last Tail to cover projected four year tuition of j102,600. The older the child though the higher the Cost. Most investment advisers say a family could almost do the same on their own by investing bit by i in savings Bonds or certificates of deposits although they would t have the same Tan benefits enjoyed by the schools. Since Duquesne s trend setting program numerous programs and proposals have emerged. In Washington several Bills Are pending to St up tax free savings accounts resembling individual retire ment accounts to finance education. President Reagan support a tax exempt savings Bond program. Six Stales Michigan Indiana Florida Maine Tennessee and Wyoming have passed Laws establishing prepayment Lution plans according to the Educa Ion commission of the states the internal Revenue service just ruled the Michi Gan education Trust had to  Federal taxes on earn Ings but individual investor would t have additional tax liabilities. California Illinois Missouri new Jersey new York Ohio Oregon Pennsylvania South Carolina Texas and West Vina a have similar legislation Pend ing it said. And Illinois and North Carolina have passed special savings Bond plans it said. On the commercial Side of things there s the Colleg savings Bank. The Princeton n.j., institution s Mam line of business in to sell certificates of Deposit with interest Rales changing annually to keep Pace with Ris ing College costs. Keeping track of what s available to students and families in the Way of investment plans financial Aidor scholarships is often half the Battle As College sponsored programs come and go new Laws evolve from state to stale or Congre ind the internal Revenue service gel involved. There s Juil so much change going on said John b. Con. A spokesman for the National association of College Ana University Minas officers. The non profit group Bawd in Washington . Publishes alternative approaches to tuition financing available to the Public for s1 i. Many other guidebooks also Are available in Book stores and colleges. Cox suggests thai parents Start out by selecting a few prospective colleges then contacting the financial Aid departments of each to see what programs the schools have or might be considering. Here s a thumbnail look at some of the Many pro Grams being offered according to nac Ubo and other sources prepayment plans. Students Hove the option at some colleges and universities of paying for All four years up front thus avoiding future tuition increase to. About 50 institutions Oiler this program including number of Ivy league schools like Brown University Cornell University and Yale University. Delayed prepayment or installation plans. A num Ber of colleges and universities allow tuition payment to be made in equal amounts or instalments during t semester or year. Some institutions require a Down payment of As much As to percent tuition Gilt Kcf Euleaus. Sold by a handful of col Leges including two year schools these certificate May be bought for a designated number of credit hours or other tuition unit. Some arc transferable but most cannot be cashed in. Interstate tuition plans. At least two regional con ionic is on the Wesl coast and in new England offer some students a Chance to go to College out of slate for slightly higher than the residential Rale. The program is Only limited to participating Stales and institutions. One of the groups. Western interstate com Mission for higher education also a ranges for slate subsidized tuition Wrosz tale Borders. Loan programs. Besides commercial Banks and thrifts a number of colleges and universities loan Money directly to families or student although most Are intended to pick up where federally guaranteed student Loans leave off. Several Quirt such As Massachusetts Connecticut Maryland and Mew York also provide student Loans. Others. Work study programs and scholarships arc available 10 a Broad Range of students. Several re search services will even help track Down obscure scholarships for a fee