Sending the kids -- or yourself -- to college can seem like an overwhelming financial objective. Saving early is the best strategy. But what kind of saving plan is best?
Certified public accountant Joseph Hurley says Section 529 plans are "The Best Way to Save for College" (BonaCom Publications, $22.95). His book offers an Internet guide to Section 529 plans at SavingForCollege.com.
These state-sponsored plans, named for a section of the tax code, come in two basic varieties: prepaid tuition plans and savings plans. Both grow tax-deferred. Distributions are taxable at the student's income tax rate, generally much lower than the parents'. And the account remains under the parents' control until withdrawal of funds.
You don't have to sock away everything your child will need ahead of time. Wiredscholar says that "approximately 70 percent of full-time students receive some form of financial aid -- federal, state, school or private."
Wiredscholar is a service of Sallie Mae, the nation's leading provider of educational loans, primarily federally guaranteed student loans originated under the Federal Family Education Loan Program (FFELP). Feeling lucky? Wiredscholar gives away a $1,000 scholarship every month.
Athletes aren't the only kids who qualify for scholarships. And schools aren't the only ones offering to foot the bill for students. FinAid! is a comprehensive guide to loans and scholarships, including military aid for veterans and their dependents and students interested in military careers.
You can search for scholarships from the comfort of your computer. Simply input a profile of the student at one of these search engines and it will crunch through its database. See what kind of matches turn up at FastWeb, Find a Scholarship, from U.S. News, and FastAID.com.
And don't ignore the opportunity for your student to learn real world values in a work-study program. You can find out more about them by clicking at the bottom of the Student Financial Assistance page of the U.S. Department of Education.
