As the cost of a college education continues to rise (average 8%/year), it is more important than ever to plan as early as possible. For people starting a college savings plan today, questions arise as to what is the best vehicle and how much should I save. Thrive can help by factoring this important goal into your comprehensive financial plan. We'll work with you to determine the right vehicle(s) and appropriate amount to save.
Depending on your unique situation, here are common funding vehicles:
- 529 Plan
- Coverdell Education Savings Plan
- UTMA Accounts
- U.S. Savings Bonds
- Home Equity
When saving for college, special consideration should be given to future eligibility for financial aid. Most needs based financial aid programs base eligibility on the amount of assets that are owned by the child. Generally, assets that are owned by the parents are not considered for financial aid eligibility. If assets are held in the child’s name, or in a trust for the child, they could negatively impact eligibility.
To learn more about Saving For College, please contact us today.