What avenues of college funding are available?Saving for someone's college education is daunting, but manageable. Plan early, invest often. Your child will thank you for many years to come. And what could be better than that? Start a savings plan: Start early. Start when a child is born. If you invest regularly and aggressively..you can have a large portion of the funds needed by the time your child is of college age. From ages 1-9 invest aggressively. Invest in higher risk funds which yield higher returns. From ages 10-13 start shifting to more conservative funds such as bond funds and money market funds. At ages 14-17 shift your money into banking instruments such as treasury bills or laddered cd's. Be sure you move your funds before the January of your child's junior year. The gain on your investment will show up on your tax return, which you will show when applying for financial aid. Colleges weigh income more heavily than assets when calculating financial aid. Pump up your 401k plan. Since college admissions weigh income more heavily than assets when deciding who gets financial aid, another tactic is to lower your income via 401K deductions. This reduces your income and shelters more of your assets. We'll show you the best and easiest of college funding possibilities. There are several things that can be done to ease the strain of paying for college. With planning and consistent saving and research, you can find tens of thousands of dollars to help with college costs. One of the easiest ways to get free money for college is through Upromise. This is a company that will contribute to a college 529 account for anyone you designate (child, grandchild, any relative, friend). They make contributions based on your purchases, use of credit and debt cards, grocery club cards and spending at designated retailers. So if you shop at designated online shops, buy gas at designated stations, plan your travel on designated sites....they will contribute a specified percentage for each transaction. Whether you're dining out, buying groceries, buying major appliances or even selling your house.....a percentage of your buying power will be contributed to a college fund for a person(s) of your choosing. College 529 accounts are savings accounts designated by the IRS to be federal income tax free and in some cases also state income tax free. 529 accounts can be set up for anyone (child or adult) by anyone (a parent, a grandparent, friend). If the designated person chooses not continue on with secondary education, then the funds may transferred to another individual for use in college or vocational training costs. It's a win win proposition Scholarships and grants can be a major part of your college costs considerations. Scholarships and grants are monies to be used for college costs and are not expected to be repaid. Many organizations offer scholarships for a variety of qualifications ( example: children of firemen, of a particular heritage, a political association, for children of deceased parents etc,). Researching and being diligent in pursuing those opportunities is the key to success in obtaining scholarships and grants Another source of funding for college is through college loans. There are a variety of loans available from federally and state funded to private funding of loans through financial institutions and colleges. These funds must be repaid, some with interest and most after graduation from school. Return to Teach Money Management Return to Money Management Plan - Financial Road Map Return to College Age Money Management
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