Financial aid available from Federal and State level agencies for college students is deteriorating in high volumes and the tuition fees continue to rise. It has been observed that the tuition costs to attend colleges display an increase of 4 to 6 percent annually. College fees have risen faster than the prices of any other goods or services for the past 30 years. Based on 2009-2010 rates, the price for attending a private university for four years has crossed $105,000. Managing college costs is truly a pain in the current economic conditions. However, with proper financial planning you can deal with college fees and other expenses with ease.
Irrespective of the number of children you have and their respective ages, there are several investment options available for college costs. You can seek assistance from a financial planner to evaluate strategies and choose an option that best suits your needs.
You can always seek help from grants and scholarships, or even apply for student loans. You can receive financial aid even if your child is not a topper. Several grants and scholarships are based on financial need. Other criterions include academic standing, extra-curricular activities and civic involvement. Even if you feel that your income is too high to receive financial aid, there is no harm in filling out applications.
You can invest in 529 plans, which allow contributions to an investment account in your child’s name. These plans also allow you tax-free withdrawals for educational expenses. If 529s fail to interest you, you can make penalty-free withdrawals from an existing IRA account for any educational costs. IRA accounts have contribution and withdrawal limits and not everyone can qualify for it. Withdrawals from an IRA are likely to affect retirement goals.
Some offerings may interest you if your grandparents wish to contribute. Anyone with an income less than $110,000 a year single or $220,000 joint are allowed to make a contribution of up to $2,000, with several investment options, which you can discuss with your financial planner. A student can withdraw money for educational use, from a Coverdell Savings Account after his 18th birthday till he turns 30.
Lastly, you can discuss tax scholarships with your financial and tax professionals. A tax scholarship is a financial technique that creates money by transferring assets to your child over several years, taking advantage of the child’s lower tax bracket. These tax savings add up to thousands of extra dollars that can be used for higher education expenses.
There are numerous investment options available to decrease your financial woes. You can seek advice from your financial planner, who will assist you in sending your child to college without the burden of large loans and interests or the loss of your retirement fund.
Securities America is a registered broker/dealer based in La Vista, Nebraska. It offers a host of financial services such as educational spend planning too. Visit this page for more details.
Read More From Jack Ranger
|
