Tackling the rising costs of higher education

Tackling the rising costs of higher education

Nearly 20 million Americans attend college each year, and, of those, nearly 60% borrow annually to help cover costs. While many may borrow to pay for tuition, there are challenges associated with debt that may be particularly difficult for students seeking a job after graduation. The Federal Reserve notes that there is roughly $1 trillion

Three reasons why 529 plans remain popular

Three reasons why 529 plans remain popular

The back-to-school season can be a good time to talk about college savings. As many parents would attest, before you realize it, back to school means back to college. A 529 college savings plan remains one of the most popular vehicles for saving for college costs, largely due to the ease of account creation, flexibility,

Connect with non-profits with a 529 scholarship account

Connect with non-profits with a 529 scholarship account

Strategies involving 529 college savings plans offer many opportunities for advisors to connect with a range of clients, from individuals and families to non-profit organizations. The rapid growth of 529 plans illustrates the potential business opportunities. After retirement, education funding is widely regarded by investors as the most important savings need. Advisors who reach out

A 529 plan offers benefits beyond paying for college

A 529 plan offers benefits beyond paying for college

There are numerous incentives for parents to save for a child’s future higher education, rather than rely on borrowing. Cost is one. Total charges at both private and public four-year colleges rose more than 4% from 2011-2012 to 2012-2013, according to the College Board. Source: The College Board, “Trends in College Pricing 2012.” Another incentive

Tax breaks extended for college savings

Tax breaks extended for college savings

The American Taxpayer Relief Act of 2012 extends or leaves intact provisions that may benefit families saving for and funding a college education. 529 plans unchanged The new law did not affect 529 college savings plans, which offer some of the most meaningful tax benefits to savers. Account owners pay no federal income tax on

Considering a 529 strategy for certain family trust assets

Considering a 529 strategy for certain family trust assets

Many people establish irrevocable family trusts to fund their children’s college tuition and expenses, but the possibility of higher tax rates in 2013 may make this year an opportune time to consider designating a portion of those trust assets to own a 529 college savings plan. Irrevocable trusts are generally not tax efficient entities since

Student loans not easy to shed

Student loans not easy to shed

Borrowing money remains a significant part of most students’ plans for paying for college. According to Pew Research Center, 60% of all graduates in 2008 had borrowed money for school, compared with 52% in 1996. Considering this trend, it’s likely that taking out a loan will be part of the discussion when planning for college.

Expiring tax laws pressure college savings, but not 529 plans

Expiring tax laws pressure college savings, but not 529 plans

While several tax provisions set to expire this year are putting pressure on college savings, there are no legislative changes currently proposed that would impact 529 savings plans. If Congress does not act, the contribution limits for Coverdell education saving accounts will be reduced after December 31, 2012. The current maximum contribution is $2,000 per