The FAFSA process discounts the income and assets of students differently than the income and assets of parents in order to calculate the family contribution (EFC) amount. Understanding these components is important to maximizing the financial aid package. The Government-sponsored financial aid programs are summarized in our blog “Types of Financial Aid.” Need-based Federal aid …
A college financial aid package is a combination of merit-based grants from universities or private institutions, and need-based loans or grants from the Government. There are three types of financial aid: Grants, Loans and Work-Study Program (WSP). Grants are awards that do not require repayment, whereas loans need to be paid back. Financial aid can …
The 529 college savings plan allows after-tax investment to grow and be withdrawn tax-free for qualified education-related expenses. The state-run 529 plans are the newer and better version of the ESA Coverdell plans offered by private brokerage firms. Here are the key features of the 529 college savings plan. Tax Benefits: 529 plans have Roth-like …
Today’s cost of tuition at a public institution of higher education is (on average) $10K a year and is increasing at twice the normal inflation rate. Sending two children to college is quarter of a million dollars expense in today’s costs. Interestingly, rich state and private University endowment funds help subsidize tuition costs. Planning for …
