529 Plan

A 529 plan (named for the tax code with the same number) is one way you can save money for a child’s education. The general idea about 529 plans is this: You can salt away after-tax money into a 529 plan and those funds will grow tax free in the plan as long as you use the funds for approved college expenses. Each state offers different 529 plan options, but you don’t necessarily have to invest in the 529 plan for your state. There may be tax benefits for investing in your home state plan, but if the plan is expensive or doesn’t offer stellar returns, you may do better by investing in a different state’s plan. How do 529 plans work? At what point should you open a 529 plan for a child? And how does the money in a 529 plan get taxed? Learn more about 529 plans from this topic page.

Leftover Funds in a 529 Savings Plan: What to Do With the Money

Q: My child graduated college and we still have leftover funds in a Georgia 529 savings plan; about $5000. If I close the account out, do the leftover funds become income to me as the parent or to my child …

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Questions On 529 Savings Plans

Are there tax penalties on a 529 plan if your child doesn’t start college by a certain date? Is a 529 plan the best way to save for college? Are contributions to a qualified 529 plan deductible? These questions and more about 529 plans are answered here.

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Real Estate Minute: Grandparents Help With Saving For College

Real Estate Minute with Ilyce Glink
Grandparents Help With Saving For College
Original Air Date: July 3, 2006

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Fund College With PLUS Loans

Paying for college may include a combination of student loans, grants and scholarships. In some cases, parents are willing to take out loans towards their children’s college educations as well. Parents who want to borrow money to pay for college can take out PLUS loans, which begin accruing interest right away. In addition, the first payment toward a PLUS loan must occur within 60 days of the PLUS loan’s disbursement.

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Perkins Student Loans Help Fund College Education

When you’re trying to fund college you should look into all borrowing options. If you have significant financial need you may qualify for a federal Perkins loan. To see if you’re eligible, you should fill out a Free Application for Federal Student Aid (FAFSA) form.

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529 Plan Helps You Save Money For College

How can you save money for college for you or your children? You can set up a 529 plan, which is named for the section of the tax code which covers it. A 529 allows you to invest money to be used toward college expenses such as books, tuition and computers. States may offer two types of 529 plans: a prepaid tuition plan or a college savings plan. Learn about 529 plans here.

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Are There Advantages To Using Savings Bonds For College?

Using savings bonds to pay for college has its pros and cons.

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Federal Student Aid For College: Who’s Eligible?

When you want to get a college education you need to figure out how to fund it. One part of paying for college may include federal student aid. What criteria do you have to meet in order to get federal student aid for college?

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Pay College Expenses With Qualified Tuition Program

A qualified tuition program is another name for a 529 plan, which allows you to save and invest money for college expenses. 529 plans or QTPs provide people with special tax benefits, such as accumulating earnings tax-free, if you meet education expense levels. QTPs may also be set up by educational institutions themselves.

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Investing Needed To Save Cash For College

Some of your child’s education is bound to be paid for through scholarships, financial aid, and student loans. The rest can only be the product of aggressive investing. To make sure your child has college money available when they need it, you have to choose a well-diversified portfolio of mutual funds and start spending less and saving more by shaving costs from your budget.

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