The Obama Administration is proposing a series of changes to 529 Plans, reports the LA Times, in order to encourage more middle class Americans to save money for college. 529 Plans allow you to contribute after-tax dollars, which then grow tax-free until withdrawal, as long as they are used for qualified education purposes. (To learn more about 529 Plans, see Financial Aid … [Read more...] about President Obama Pushes for More College Saving Among Middle Class
Saving for College
Student Loan Interest Rates Set to Fall; Pell Grant to Increase
A number of important changes are looming for federal student aid, which may save you some serious cash. Here's a quick look at the most significant developments: Interest rates on subsidized Stafford loans are dropping -- This year, they will go from a 6% to 5.6% (fixed). Under the College Cost Reduction and Access Act of '07, the rate will continue to drop until … [Read more...] about Student Loan Interest Rates Set to Fall; Pell Grant to Increase
Should Parents Foot the Bill for College?
I recently read this older piece on Kiplinger.com, entitled "Who should pay for college?" and it got me thinking: Assuming money is not an issue, do you think parents should be responsible for paying for their kids' college education? There's a whole range of responses to this question, from: Absolutely not! I paid my own way through school and my kids will do the same! It … [Read more...] about Should Parents Foot the Bill for College?
The Best and Worst 529 Plans for 2008
Consumer Reports recently published its May edition of Consumer Reports Money in which it ranked the 88 different 529 College Savings Plans. If you aren't familiar with College Savings Plans, I recently reviewed them in our "Best Ways to Save for College" series -- check it out here. Or you can read a more in-depth analysis of 529 Plans in our section on College … [Read more...] about The Best and Worst 529 Plans for 2008
The Best Way to Save for College: Coverdell ESA
Last week, we launched a new series here about the best vehicles for saving for college. The first two posts covered 529 Plans, both College Savings Plans and Prepaid Tuition Plans. If you didn't catch them last week, start there. Today we are looking at a lesser known college savings vehicle: the Coverdell Educational Savings Account, also referred to as the Educational … [Read more...] about The Best Way to Save for College: Coverdell ESA