Paying for Education Expenses
Plan Now and Be Prepared for the Future
If you are planning to pay for education expenses for yourself, your children, your grandchildren, or someone else you love, there are many factors to consider:
- Choosing public vs. private education.
- In-state vs. out-of-state tuition.
- Financial aid opportunities, both federal and state.
- Scholarships.
- Type of degree sought.
- Housing costs (on- or off-campus).
- How much money you will need.
- How long it will take to save it.
- How your plan impacts your current taxes, future taxes, financial aid eligibility, and tax credits.
Several education savings plans are available, each with its own advantages:
Uniform Gifts to Minors/Uniform Transfers to Minors Accounts (UGMA/UTMA).
Your child will ultimately control this type of custodial account and use the funds for education as well as other expenses.
529 college savings plan.
A 529 plan targets college tuition and expenses. It remains under your control and offers certain tax and contribution advantages.
Coverdell Education Savings Account.
This account offers tax benefits and has a maximum annual contribution limit of $2,000.
We can help you learn all your options, review the pros and cons of each, and guide you in choosing the best solution for your needs and situation.
