federal financial aid – Putnam Wealth Management

As FAFSA rules change, more grandparents may save in 529 plans

More grandparents may consider funding a 529 plan for their grandchildren as financial aid rules change.

Parents looking at future college expenses are assessing choices for funding college to reduce the debt burden for their children and themselves.

The future of student loan forgiveness proposals is still under debate highlighting the need to save for college.

Last year, the coronavirus relief bill signed into law in late 2020 makes several changes to the FAFSA filing process in the future.

Taxes

Students may want to consider using a Roth IRA to save some of their summer earnings.

While college students may decide to take a gap year, families can continue to plan for the completion of the college program.

Here are some saving strategies using 529 savings plans that may help students maximize their eligibility for financial aid.

Understanding federal financial aid for college

Families want to save for college and maximize their child’s eligibility for financial aid. There are ways to use a 529 plan to meet both goals.