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The Many Ways to Save for College

Check out the other articles in college finance series:
How Will We Ever Save for College? | "We Forgot to Save for College!" | Choosing and Using a Financial Planner


What are your college savings options? Some parents tap into home equity loans, variable life insurance policies and even retirement accounts. But there are programs specifically for education savings, including:



  • 529 and Coverdell education savings plans - These are both tax-exempt savings plans, although the 529s vary by state and can include prepaid tuition plans that lock in current tuition costs at in-state public colleges. Coverdell Education Savings Accounts can be used to pay for primary, secondary and postsecondary education costs.
     

  • Credit card rebate programs - Programs such as UPromise® and BabyMint™ offer tax-exempt rebates, to be used for college savings, when you purchase products or services from particular businesses.
     

  • Certificates of Deposit and U.S. Treasury Savings Bonds - Each have education-dedicated savings options.

Check out FinAid.org, a college planning Web site created by financial aid expert Mark Kantrowitz, to learn more about your savings options.


Check out the other articles in this series:



Resources


The resources listed below cover long-range planning for college savings. This is just a small sampling of the resources available, but a good place to start.


Financial Planners or Advisors


Both membership organizations list local financial planners and good financial planning tips:



College Financing Advice





  • CollegeBoard.com   - Offers information to students and parents about saving for and applying to college.

  • FinAid.org   - This award-winning Web site has information on aid, scholarships, loans, savings plans and more.

  • SavingForCollege.com   - Provides information, tips and news about college savings options, including 529s and Coverdell Education Savings Accounts.

Books


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