Terms of Use Many colleges require the SAT (Scholastic Aptitude Test) for admission because it is a standard way of measuring a student's ability to do college-level work. Because courses and grading standards vary widely from school to school, scores on standardized tests, like the SAT, help colleges compare your academic achievements with those of students from different schools. Remember, too, that colleges look at other things when making admission decisions -- like your high school reco  More...

Terms of Use Yes , anyone can contribute to a Coverdell Education Savings Account on behalf of the designated beneficiary. You do not have to be related. You can make a contribution to a Coverdell Education Savings Account as long as your income does not exceed these MAGI limits: In 2025: $220,000 (married filing jointly) $110,000 for other filers Income phaseouts start at $190,000 (married filing jointly) $95,000 (other filers). There can be multiple savings accounts established for  More...

7 Terms of Use You have several alternatives for saving for your child's -- or for your own -- education. The table below gives you a quick way to compare your choices. Feature The 529 College Savings Plan (not prepaid tuition) Custodial Accounts for Minors (UGMA/UTMA) Coverdell Education Savings Account (AKA Education IRA) Part of Parents' Savings and Investment Accounts Guidelines for Use of Assets Qualified Expenses C an be used for qualified higher education expenses, within limits  More...

Terms of Use Federal PLUS Loan ( P arental L oan for U ndergraduate S tudents) is designed for parents who need to borrow money to pay for their child's post-secondary school expenses. The PLUS loan allows parents to borrow up to the full cost of education, less any financial aid received, has a variable interest rate, and may be used in conjunction with other student loan products. The Federal Stafford Student Loan is for a student who needs to borrow money to pay for their post-second  More...

Terms of Use Earnings on distributions not used to pay for the beneficiary's qualified education expenses are included in the beneficiary's taxable income and subject to a 10% tax penalty. Qualified education expenses are for primary, secondary, and postsecondary education expenses, including tuition, fees, tutoring, books, supplies, related equipment, room and board, uniforms, transportation and computers. The balance of the account must be distributed within 30 days after the benefi  More...

Terms of Use Contributions to a Coverdell ESA are not tax deductible. Money invested will compound tax-free and remain untaxed upon withdrawal. If the distribution from an ESA does not exceed the beneficiary's qualified education expenses, then no federal income tax will be owed. If the money is not withdrawn by the time the beneficiary turns 30, it must be distributed to the beneficiary, who will then pay a 10% penalty on the distribution. One exception is that the proceeds can be transf  More...

Terms of Use No, contributions can no longer be made once the beneficiary reaches the age of 18. Once the beneficiary reaches age 18, he or she can take control of the account. Funds must be used by the time the beneficiary turns 30 years old or transferred to a younger sibling. The funds can also be rolled into a 529 plan. 529s have no age limit. Note: special considerations are given to disabled and special needs beneficiaries. The contributions and age limitations are lifted for these in  More...

Terms of Use Amounts can be left in the account for up to 30 days after the date the designated beneficiary turns 30. After this point, the distribution earnings would become fully taxable and a 10% penalty would apply. If the assets are not going to be used for the designated beneficiary after he or she attains age 30, the balance can be rolled over to a Coverdell Education Savings Account for another designated beneficiary who is a qualified family member under the age of 30. You can also mo  More...

Terms of Use College probably seems a long way off . But you can get on the road toward college . This is particularly true as you select your classes and start planning the courses you'll take in high school . Get ready by planning to take college-prep or tech-prep courses in high school . Now is the time to plan how to meet requirements to get into college . “ I started taking Spanish this year . I'll take algebra next year . Getting ready for college is kind of like checking o  More...

Terms of Use While paying for college may seem a daunting task, help is available from the state, the federal government, colleges, private scholarships and grants, and other lending sources. To apply for financial aid, you must first complete a “Free Application for Federal Student Aid” or FAFSA. You can get a FAFSA through the U.S. Department of Education, colleges, libraries or on the Internet at FAFSA ® Application | Federal Student Aid . FAFSAs are accepted for the upco  More...