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.