Education Planning Common Questions |
Saving For College
- Are government savings bonds risk free?
- Are savings bonds a good way to save?
- Can an UGMA/UTMA account reduce my child's financial aid for college?
- Do series EE bonds offer any special advantages if used for college savings?
- Should I open a Coverdell education savings account?
- Should I save for college in my name or my child's name?
- What are the rules for Coverdell education savings accounts?
- What is the CollegeSure CD?
- What is the college inflation rate?
Paying For College
- I've heard that a grandparent can pay a grandchild's tuition directly to the college without any gift tax problems. Is this true?
- Should I use my 401(k) to fund my child's college education?
- Should I withdraw money from my IRA to pay for my child's college tuition?
Financial Aid
- Are any financial aid programs tailored especially to parents of post-secondary students?
- Can an UGMA/UTMA account reduce my child's financial aid for college?
- Can anyone get a Pell Grant?
- Can we negotiate our child's financial aid award?
- How do I apply for financial aid?
- How do I know if I'm eligible for federal financial aid?
- Is there anything I can do now so that my child can obtain more financial aid later?
- What are the major federal financial aid loan programs?
- What is a Stafford Loan?
- Are there any assets that are not counted for financial aid purposes?
529 Plan Basics
- What can you tell me about employer-sponsored 529 plans?
- What is the Independent 529 Plan?
- What's the difference between state savings plans and prepaid tuition plans?
- Who can legally offer 529 plans?
529 Plan Expenses and Fees
- What expenses and fees are generally associated with 529 plans?
- Do 529 plan expenses vary among states?
529 plans: Tax Issues
- Can I deduct my contributions to my 529 account?
- Can I use 529 funds to pay my child's college expenses in the same year I take either the Hope credit or the Lifetime Learning credit?
- How does the annual gift tax exclusion apply to contributions to a 529 plan?
- I intend to make tuition payments directly to my grandchild's college, and I know this will reduce my estate. But would it be better to contribute to a 529 plan instead?
- I know that qualified withdrawals from state savings plans are now exempt from federal income tax. But what about state taxes?
- I opened a 529 plan and my child is the beneficiary. If my mother makes a contribution to the plan, is that considered a gift to me or to my child?
- I opened a state savings plan sponsored by a different state than my own. Will I get that state's tax benefits?
- I'd like to make a lump-sum contribution to my grandchild's 529 account. Will I owe gift tax?
- If I cash in Series EE U.S. savings bonds I purchased 10 years ago and contribute the proceeds to a 529 plan, can I still avoid paying tax on the proceeds?
- Will I be penalized if the money in my 529 plan isn't used for college expenses?
- Will the value of my 529 account be included in my estate or my beneficiary's estate?
Borrowing Against Your 529 Account
- Can I use the money in my 529 account as security if I apply for a loan?
- I know I can borrow against my 401(k), but can I borrow against the value of my 529 account?
Choosing A 529 Plan
- Can I invest in any state's 529 plan, or am I limited to my own state's plan?
- I've decided on a state savings plan, but how do I go about choosing one?
Understanding 529 Investments
- Does a state savings plan allow me to choose my own investments?
- Is my rate of return guaranteed under a 529 plan?
- What recourse do I have if I'm unhappy with my state savings plan's investment performance?
- What's the difference between how a state savings plan invests and how a prepaid tuition plan invests?
Using or Withdrawing 529 Funds
- Can the funds in a 529 plan be used for college expenses if my child is only attending part-time?
- How will my 529 account be treated for financial aid purposes?
- I opened a state savings plan account for my grandchild many years ago, and he's now filling out financial aid applications. Do his parents need to list the value of the account in their assets, or does my grandchild list the value of the account as his asset?
- Must the funds in a 529 plan be used for tuition only, or can they be used for room and board expenses?
- My child got a full scholarship to college--now what?
- My child is the beneficiary of a 529 plan. Can he use the 529 funds at a foreign school?
- My child is the beneficiary of a 529 plan. Can he use the 529 funds for graduate school?
- My child is the beneficiary of a 529 plan. Can he use the 529 funds for vocational school?
- My child is the beneficiary of a 529 plan. Can we use the 529 funds for her private elementary or secondary school?
- My child will be going to college next year and using 529 funds to pay expenses -- what do I need to do?
- What happens if my child finishes college and there is money left over in the 529 account?
- What happens to my 529 plan if my child wants to postpone going to college for a year or two after high school?
- Can 529 funds be used for general living expenses while at college?
