Terms of Use 529 plans are one of the more popular options for families saving for their child's college education. Although the plans do differ from state to state, they are all exempt from federal income tax, giving you a real boost to your college fund. What is a 529 plan? A 529 plan is a state-operated plan that gives families a federal tax-free way to save money for college. Specific plan attributes vary by state but all have several common features. What are the two types of 529 plan  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...

Terms of Use Federal Stafford Student Loan: The Stafford Student Loan offers deferred payment options so that you do not need to begin repayment until after your graduation or after you leave school. With the subsidized Stafford Student Loan the interest is paid by the Department of Education while you remain enrolled at least half-time at an eligible school, during a six-month grace period following the date you drop below half-time enrollment, and during qualified periods of deferment. Int  More...

Terms of Use Distributions are generally tax-free if used to pay for the beneficiary's qualified education expenses. Coverdell ESAs are not tax-deductible, but earnings grow tax deferred.

Terms of Use If you're good at planning ahead, you may have thought about it before your child was even born, perhaps while you were shopping for a bassinet and teddy bears. At any rate, you probably started thinking about it when your child was very young. After all, it's one of the major responsibilities you face as a parent: your child's college education. Personal growth and expanded horizons are reason enough to send a child to college, but there are more practical considerati  More...

Terms of Use Consider that the majority of all college students receive some form of financial aid. Some tips to maximize the financial aid you and your student receive: Try to avoid putting assets in your child’s name Reduce your income Detail any financial hardships Have your child become independent As a general rule, education funds should be kept in the parents’ names, since investments in a child’s name can impact negatively on aid eligibility. For example, the rules  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 Yes , many individuals and families mistakenly think they don't qualify for financial aid and prevent themselves from receiving financial aid by failing to apply for it. In addition, there are a few sources of aid such as unsubsidized Stafford and PLUS loans that are available regardless of need. The FAFSA form is free and needs to be updated each year. Check out the other related articles in this site. More info is available by going to www.finaid.org .

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 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...