College, Your Kids and Saving
Spring brings the reality of our kids making final decisions on where to go to college. They sift and sort through scholarship offers, out of state vs instate tuition and how to pay for college. If you have kids who are 10 years out from college, here are some answers.
"The 529 college savings plan is the single most popular college savings vehicle for families, accounting for about 30% of colleges savings and available in every state, except Wyoming, and Washington, D.C., according to Sallie Mae, a private lender of student loans."
"But there are well more than 50 plans to choose from because many states offer plans that are sold directly to families as well as plans sold by brokers and registered investment advisors. In all cases, however, earnings grow free of federal taxes and withdrawals are tax-free if they’re used for qualified educational expenses such as tuition or room and board. In most cases, total allowable balances can reach into the hundreds of thousands of dollars."