– Keep The Education Plan In Your Name: If you can keep the plan in your name that would be an asset when you apply for the financial aid. Many financial institutions usually put huge financial requirements which aren’t possible for your child to fulfill. So, choose wisely and keep the plan in your name or in the name of your wife (insurer).
– Choose College Plan Wisely: There are different plans to follow, choose the one which suits you best. There are certain ifs’ and buts’ on saving for college plans, so better inquire about the best plan which suits your needs. Also investigate the plan and inquire about how they invest money to help it grow. Be sure to get the details of the plan you have opted for.
– Estimate How Much You Can Contribute To Your Child’s College: Get zeroed on the contribution and estimate how much you would be eligible to pay when your child starts his/her college. Before your final decision, give it a careful thought considering your family income. Moreover, always estimate the amount you would easily pay before opting a plan.
– Invest In Tax Free Plans: This is an asset when you opt for the educational saving plan that gives you a head start. If the money you are paying is also earning your tax benefits that’s best for you and your family. There are many plans which help families to save for college because anyone can open one, and the money invested grows tax-free and can also be withdrawn without being taxed.
– Determine A Tuition Program: Prepaid tuition plans are college saving plans that are guaranteed to increase in value at the same rate as college tuition. So by purchasing the equivalent of a year’s worth of tuition today, you ensure that in 15 years your investment will still be worth a year’s worth of tuition at the current rate.
– Compare Different Plans: Comparing different plans will help you in determining the best and suitable plan for your child. This will also help you in understanding the current market standing of that particular plan.
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