Save for college

Saving for College

There are two main types of College savings plans. Section 529 plans and pre-paid tuition plans. They are tax deffered savings plans that are available in all states.

The key points to the these plans are:

• They are available to anyone regardless of income or age up to the plan limit.
• Can benefit anyone. YOu may set up a plan for you child, grandchild, nephew or neice.
• All contributions are tax deffered and qualified withdrawls are tax free.

Pre-paid tuition plans
Contributions pay for a specific number of course units at todays' prices. If the cost of tuition increases the state pays the difference between the amount purchased and the current costs if the sutdent attends an in-state public college or university. If the student chooses to attend a private or out-of-state college the plan normally pays the average of the in-state tuition at that time.

529 Savings Plans
If you're not sure your child will be going to an in-state school, this plan may be better suited for you. The 529 plan gives you the flexibility to contribute to a tax deferred account for your student and is invested in a savings vehicle. (such as a stock or mutual fund) The amount available for college depends on the amount you invest and the rate of return. this may or may not be enough to pay for the total costs of school when your child is ready to begin their college career.

Below you will find links to a few of the most recent articles added to our library. Check them out and be sure to review the entire resource by visiting the Student Loan Advisors Library.