The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
Notebooks, check. Pencil cases, check. Backpacks, check. 529 plan, whoops, forgot that one.
September is a good time to think about all things educational. For those who have 529 plans, increase the monthly contribution. The little extra you contribute will surely add up over the years. For those of you who don’t, or are not familiar with this type of savings vehicle, here is a friendly reminder to start a 529 plan.
A 529 plan is a tax-advantaged investment vehicle in the U.S. designed to encourage saving for the future higher education expenses of a designated beneficiary. A 529 plan is the most flexible method with tremendous advantages for long-term college saving. Here are some of the most important things to know:
Many parents may be concerned about how having a 529 plan will impact their chances of financial aid. A 529 account owned by a parent for a dependent student is reported on the Free Application for Federal Student Aid (FAFSA) as a parental asset. Parental assets are assessed at a maximum 5.64% rate in determining the student’s Expected Family Contribution (EFC).
Parents may also wonder if they should save for retirement or save for college. Ideally, once your emergency fund is fully funded, you should aim to set aside enough money for tuition contribution goals and retirement savings simultaneously, if that’s possible. If not, it’s critical for parents to secure their emergency fund, then their retirement finances first before funding children’s education expenses.
Image: iStockphoto
August 26, 2020
Student Loans
August 4, 2020
Student Loans
July 31, 2020
Student Loans