A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code, which created these types of savings plans in 1996.
It’s always wonderful when grandparents volunteer to help with college costs.
Grandparents, however, have to be careful about how they pitch in if their grandchildren have a shot at receiving need-based financial aid.
If your family is too affluent to be eligible for need-based financial aid, it doesn’t matter how grandparents save for college or how they help pay the tab.
Is it possible that students have no idea how much they are borrowing for college?
My husband and I recently finished paying for college.
Most parents with college-age children should complete the Free Application for Federal Student Aid, but many families never bother.
According to the U.S. Department of Education, less than 55% of families with high school seniors submit the FAFSA. That’s a low statistic when you consider how important this document is to millions of Americans. Low and middle-income students, for instance, have a 25% to 30% greater chance of enrolling in college if they file the FAFSA.
Students who borrow for college typically graduate with an average of $26,600 in student loan debt. This can be manageable if graduates understand how to safely repay their loans. Here then are five tips to help college borrowers get a better handle on their college debt:
“My family makes too much to qualify for financial aid.” Lots of parents believe this statement, but plenty of them are wrong. In reality, many families qualify for some sort of financial aid. This financial aid myth is a stubborn one because parents don’t understand how financial aid needs are determined.
How much will you have to pay for college? The answer will depend heavily on your Expected Family Contribution. If you missed it, our last post explained what an EFC is and why it’s important to know what yours is.