As the volatile economy batters college nest eggs, a growing number of financial institutions are rolling out incentives to help families save or pay for higher education.

» Some banks are giving a $1,000 bonus to parents who open a college savings account before their child's 6th birthday. A federal credit union is offering a discount on a loan to pay for college costs. Another is donating money to student scholarships based on a local university football team's "return yards," which is how far players run with the ball after a punt or kick.

» The incentives won't significantly ease the pain of surging tuition or shrinking investment portfolios. Yet banks and credit unions hope their efforts will provide comfort to consumers. Yearly tuition and fees at public four-year colleges have risen 62 percent in the past decade, according to the College Board says.

» Institutions also hope that they'll be able to attract and retain more customers by forging relationships with students, said Chip Filson of Callahan & Associates, which consults with credit unions. These students will eventually need car loans and mortgages.

» Parents and students need to "look twice before you leap" into these promotions, said Kalman Chany, author of Paying for College Without Going Broke . The industry's college-related promotions "might not be the best deal in town."

» Parents also should explore all the options they have available to them to pay for college costs, including state-sponsored 529 college-savings plans, Chany said. These plans allow you to withdraw funds, free of federal taxes, to pay for college.

Source » USA TODAY