Smart College Savings

The Best and The Worst 529 Plans

Sat, 03 Mar 2007 18:50:13 -0800

Not two 529 plans are identical. In fact, the difference between the best and the worst 529 plans can be huge. While you may be able to deduct state tax by investing in your home state's 529 plan, the high fees in a bad plan can quickly wipe out any tax savings you achieved, and more. Here comes the WSJ's report on a recent Morningstar research of 529 plan options.

10 Most Expensive Colleges in the U.S.

Mon, 13 Nov 2006 11:55:54 -0800

What is really surprising is except for Columbia, these colleges are not really top-tier colleges. How can they sustain the pricing power?

College Expense Keeps Climbing

Sun, 29 Oct 2006 12:32:07 -0800

The College Board bings the bad news: the college bill just keeps growing at around 6% a year. It is certainly not good news for parents with young children, and underscores the importance of savings early and more for college.

How TO Pay Off Your Student Loans

Thu, 26 Oct 2006 19:06:35 -0800

While student loans have helped many poor students by enabling them to pursue further studies by providing financial assistance, it can also be an emotionally and mentally exhausting journey. Repaying a large student loan or multiple student loans can be a long burden which extends many years, well into your working years. Many students which have graduated find themselves having to set aside a large portion of their salary just to repay the student loans. So what solution is available to help? A student loan consolidation plan may be able to help you particularly if you are repaying several student loans concurrently. A student loan consolidation plan consolidate your student loans into one loan thus you only need to make one payment each month. This will help to better manage your finances as now you only repay one loan. There are several types of student loan consolidation plans available depending on who you lend it from. Examples are federal student loan consolidation, sallie mae student loan consolidation etc. Check with your school or lender for more information. There are several ways in which you can repay a student loan consolidation. The most common is a standard repayment plan. You repay a fixed amount every month until you fully repay the loan. A graduated payment plan allows you to repay the student loan after you have graduated. It is suited for students who have no income during studies and only able to repay when they graduated and have a job. A variable payment plan allows you to adjust how much you repay each month depending on your income level. It allows a greater flexibility and is more suited for people whose income varies each month. An example would be salesmen who earn via commission. Another advantage of student loan consolidation is that it also helps to improve credit rating. Since you are effectively getting a new loan and your existing loans have already been cleared, it will help to improve your credit rating and easier to get financial assistance should you need one in future.

Best Starting Salary For College Graduates

Fri, 20 Oct 2006 20:44:57 -0800

Marshall Loeb summaries a study on starting salary of college graduates. It shouldn't be a surprise that engineering students and bean counters make more money than those devoted to education and retailing.

You Can Get Tuition Discounts At Public Colleges Too

Sun, 15 Oct 2006 12:54:11 -0800

The College Board's research finds that you have a fairly good chance to get a discount for your public school tuition too.

Six Tips Of Paying Off Student Loans

Sun, 15 Oct 2006 02:38:06 -0800

Diana Ransom at WSJ offered some tips of paying off your student loan properly. Among those tips, it is especially to examine whether a student loan consolidation will help you to pay less interest over the long haul.

How To Cut Your College Cost: 10 Innovative Ideas

Tue, 10 Oct 2006 04:42:49 -0800

Here are ten savvy ways to reduce your college expenses. Take a look:

Independent 529 Plans

Sun, 01 Oct 2006 19:59:28 -0800

Yes, although carrying the same 529 flag, a prepaid 529 plan is very different from the more popular 529 savings plan.

Debt 101 for College Students

Tue, 19 Sep 2006 20:07:59 -0800

Perhaps it is fair to say a dose of debt education is a meaningful part of your college savings plan for your college age kids. After all, one penny saved is one penny earned.

Tax Free Withdrawal From 529 Plan Made Permanent

Tue, 19 Sep 2006 19:57:46 -0800

Though almost expected, the new bill certainly removed the last cloud over 529 plan as a valuable college saving tool.

States Give Tax Breaks To College Savers

Fri, 15 Sep 2006 10:50:08 -0800

Tax breaks from some states make college savings options like 529 plans more attractive. (It also makes college planning more complicated, though.)

The Best And Worst 529 Plans

Fri, 15 Sep 2006 09:05:20 -0800

Forbes reports on a Morningstar research that sorts out the best and worse of 529 plans out in the market.

Quick Facts of 529 Plans

Fri, 15 Sep 2006 08:58:35 -0800

Note: Each 529 plan has its own set of rules and restrictions, which are subject to change. Make sure to request the most recent plan details from plan administrators.]]>

Does A 529 Plan Affect Financial Aid Eligibility?

Fri, 15 Sep 2006 08:56:23 -0800

While each educational institution may treat assets held in a 529 plan differently, investing in a 529 plan will generally reduce a student’s eligibility to participate in need-based financial aid. Beginning July 1, 2006, assets held in pre-paid tuition plans and college savings plans will be treated similarly for federal financial aid purposes. Both will be treated as parental assets in the calculation of the expected family contribution toward college costs. Previously, benefits from pre-paid tuition plans were not treated as parental assets and typically reduced need-based financial aid on a dollar for dollar basis, while assets held in college savings plans received more favorable financial aid treatment.

7 Questions You Should Ask Before You Invest In A 529 Plan

Fri, 15 Sep 2006 08:55:09 -0800

Knowing the answers to these questions may help you decide which 529 plan is best for you. Is the plan available directly from the state or plan sponsor? • What fees are charged by the plan? How much of my investment goes to compensating my broker? Under what circumstances does the plan waive or reduce certain fees? • What are the plan’s withdrawal restrictions? What types of college expenses are covered by the plan? Which colleges and universities participate in the plan? • What types of investment options are offered by the plan? How long are contributions held before being invested? • Does the plan offer special benefits for state residents? Would I be better off investing in my state’s plan or another plan? Does my state’s plan offer tax advantages or other benefits for investment in the plan it sponsors? If my state’s plan charges higher fees than another state’s plan, do the tax advantages or other benefits offered by my state outweigh the benefit of investing in another state’s less expensive plan? • What limitations apply to the plan? When can an account holder change investment options, switch beneficiaries, or transfer ownership of the account to another account holder? • Who is the program manager? When does the program manager’s current management contract expire? How has the plan performed in the past?

Is 529 Plan Right For Me?

Fri, 15 Sep 2006 08:54:29 -0800

Before you start saving specifically for college, you should consider your overall financial situation. Instead of saving for college, you may want to focus on other financial goals like buying a home, saving for retirement, or paying off high interest credit card bills. Remember that you may face penalties or lose benefits if you do not use the money in a 529 account for higher education expenses. If you decide that saving specifically for college is right for you, then the next step is to determine whether investing in a 529 plan is your best college saving option. Investing in a 529 plan is only one of several ways to save for college. Other tax-advantaged ways to save for college include Coverdell education savings accounts, Uniform Gifts to Minors Act (“UGMA”) accounts, Uniform Transfers to Minors Act (“UTMA”) accounts, tax-exempt municipal securities, and savings bonds. Saving for college in a taxable account is another option. Each college saving option has advantages and disadvantages, and may have a different impact on your eligibility for financial aid, so you should evaluate each option carefully. If you need help determining which options work best for your circumstances, you should consult with your financial professional or tax advisor before you start saving.

Different Types Of 529 Plans

Fri, 15 Sep 2006 08:53:26 -0800

Do you know there are actually two types of 529 plans with completely different characteristics?

Understanding The Rules Of 529 Plans

Fri, 15 Sep 2006 08:39:26 -0800

Here is the crash course on the basics of 529 plans.

Kiplinger's Pick of Best 529 Plans

Fri, 15 Sep 2006 08:37:33 -0800

It is Kiplinger's recommendation in 2003, so many things may have changed.

Best 529 Plans

Fri, 15 Sep 2006 08:27:45 -0800

Wondering how to choose from the dozens of 529 plans available in the market? Kiplinger picked the following four plans as the best of the pck.

Student Loan Consolidation Tips

Tue, 12 Sep 2006 01:09:37 -0800

Jay MacDonald at Bankrate is offering some smart tips to consolidate your student loans.

What Are 529 Plans?

Mon, 11 Sep 2006 05:52:15 -0800

You probably already heard about 529 plans, but do you know there are actually two types of 529 plans: prepaid and savings?