Education

Paying for College

Title and Description
Advantages and Disadvantages of Coverdell Education Savings Accounts
This tool may help you decide if using a Coverdell educational saving account to pay for college education is right for you.
Advantages and Disadvantages of Custodial Accounts For College Savings
This tool may help you decide if using custodial accounts to pay for college education is right for you.
Advantages and Disadvantages of U.S. Savings Bonds For College Savings
This tool may help you decide if using U.S. savings bonds to pay for college education is right for you.
Are state savings plans a good way to save for college?
A state savings plan lets you save money for college in an individual investment account that offers federal tax advantages.
Can an UGMA/UTMA account reduce my child's financial aid for college?
An UGMA/UTMA account is a custodial account established for a minor child and managed by a parent or other designated custodian.
College Savings Vehicles Compared
This table compares 529 plans, Coverdell ESAs, U.S. savings bonds, and Custodial accounts.
Do series EE bonds offer any special advantages if used for college savings?
Series EE bonds are generally inexpensive, low-risk investments whose earnings are exempt from state and local taxes.
Help! My child is only two years away from college and we haven't saved much. What should we do?
You'll need to accumulate enough of a down payment for the early college bills, and establish a savings plan for the later college years.
How can I save for my child's college education?
It's recommended that you start saving for your child's college education as early as possible.
How can we possibly save for retirement and our child's college education at the same time?
To accomplish both goals, you may need to compromise.
I've heard that a grandparent can pay a grandchild's tuition directly to the college without any gift tax problems. Is this true?
Any gifts over the $11,000 annual gift tax exclusion are subject to federal gift tax and generation-skipping transfer tax (GSTT).
Should I establish a trust for my child's college education fund?
The answer depends first on your financial objectives and then on other factors that will influence those objectives.
Should I open a Coverdell education savings account?
You can contribute at any time during the year, and you have until April 15 of the following taxable year to make a contribution.
Should I save for college in my name or my child's name?
There is no right or wrong answer, just different consequences.
Should I take out a home equity loan to pay for my child's tuition?
You may want to consider taking out a home equity loan as a source of funds for your child's private school or college tuition.
Should I use my 401(k) to fund my child's college education?
Your 401(k) plan should be dedicated to your retirement, with the possibility that you might need to tap into it for college expenses.
Should I withdraw money from my IRA to pay for my child's college tuition?
Assuming that you have a traditional IRA or Roth IRA, you'll want to consider the financial consequences before making a decision.
What are the rules for Coverdell education savings accounts?
A Coverdell education savings account is a savings vehicle that allows you to invest for the education costs of a child or other beneficiary.
What is the CollegeSure CD?
The CollegeSure CD® is an FDIC-insured certificate of deposit (CD) with an interest rate linked to the rising cost of higher education.

Financial Planning


 
 
 
 
 
 
 
 
 
 
 
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