College Finance: Tips for Starting a College Fund

Starting a savings fund for college can be intimidating, especially when you start thinking about all of the time and money that needs to invested in order to get started. Everyone knows how expensive college is. However, by utilizing a few of the tools listed below you too can begin saving for college.
Financial Aid
There are literally billions of dollars at your disposal in the form of grants, and scholarships. Although there are thousands of different types of financial aid, there are three general types such as campus-based grants, state, and federal grants. You can contact your local financial aid office to determine your eligibility.

Tax Credits
Tax credits are known to be better than tax deductions. You can use your tax deductions to subtract from your total taxes due. By contacting your IRS office, or website, you can check you current credit amounts.

Grant Money
A grant is money that can be presented to a person for many different reasons. The United States Department of Education has several varying forms of Student Financial Assistant Programs. These programs are dedicated to helping people get into college.

Investments
It is important to decide to begin investing ahead of time. Make sure that when you start saving for your college fund, or your child’s college fund that you have quite a few years to start investing. It can take many years to save up a substantial amount of money for a college fund.

Loans
Many people find it less cumbersome to take out loans to pay for college. Taking out loans can be more time effective, and can help to build credit. However, take caution when managing loans, you could form a lot of debt in a short amount of time.

Uniform Transfers to Minors Act (UTMA) and the Uniform Gift to Minors Act (UGMA)
Using an account like the UTMA or the UGMA can help vastly when saving for a college fund. You can place money into a custodial account on an easy, yearly basis. Check the IRS’ website for more information.

Coverdell Education Savings Accounts
Formerly known as Educational IRAs, you can start saving with this type of account. If you are saving college fund money for a child you can use an account like this and save money until he or she is eighteen. Putting contributions into an account like this is simple.

Section 529 plans
Named after the taxing code that governs them, the section 529 plans offer college fund money to people in need. Although rules vary by state, almost every state in American offers these plans. In many cases, you do not even have to be a state resident to take advantage of them.

By using these plans you can start putting money aside for college funds. Saving for college does no always have to be stressful. There always financial opportunities out there for people that need them. All you need to do is research your options, there are hundreds of plans out there.

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  1. […] Guru @ Debt Free Blog writes College Finance: Tips for Starting a College Fund – Everyone knows how expensive college is. However, by utilizing a few of the tools listed […]

  2. […] Guru @ Debt Free Blog writes College Finance: Tips for Starting a College Fund – Everyone knows how expensive college is. However, by utilizing a few of the tools listed […]

  3. […] Guru @ Debt Free Blog writes College Finance: Tips for Starting a College Fund – Everyone knows how expensive college is. However, by utilizing a few of the tools listed […]

  4. […] Guru @ Debt Free Blog writes College Finance: Tips for Starting a College Fund – Everyone knows how expensive college is. However, by utilizing a few of the tools listed […]