FiGuide » College & Education

Strategies For Getting A College Scholarship

Jean Keener, CRPC®, CFDP® — Fri, 16 Jul 2010 10:40:48 +0000

According to Catherine, merit-based scholarships are often much easier to qualify for than need-based. Colleges are often seeking different student profiles to round out their freshman class, so applying to multiple schools increases the opportunity for an attractive scholarship package

Could a Roth IRA Conversion Affect a Student’s Financial Aid?

Curtis A Smith, CFP® — Fri, 30 Apr 2010 15:30:00 +0000

An underreported story. In 2010, we have a wave of IRA owners converting traditional IRAs to Roths. There are all kinds of compelling reasons to make that move. Yet for some IRA owners, the Roth IRA conversion may have an unintended consequence: it may reduce their son or daughter’s chances for college financial aid.

The Downside of Prepaid Tuition

Jim Blankenship, CFP®, EA — Sun, 28 Feb 2010 12:41:02 +0000

When planning to save for future college expenses, you may run across several options – including insurance policies, savings bonds, retirement accounts and specific education accounts, such as Coverdell Education Savings and Section 529 plans. Among the options for Section 529 plans are two types of account: savings and prepaid tuition. Following is a brief explanation of the two types of account.[...]

Are 529′s The Best Way To Save For College?

Lon Jefferies, MBA — Fri, 29 Jan 2010 23:20:07 +0000

529 plans are great college savings tools because, although contributions are not deductible on a federal tax return, earnings withdrawn to pay for qualified higher education expenses such as tuition, books, and room and board are tax-free. The definition of “qualified higher education expenses” was expanded to include computers for 2009 and 2010. Although contributions to a Utah 529 plan are not deductible on a federal income tax return, the State of Utah will allow the contributor to claim a 5 percent tax credit on up to $3,480 per ...

Texans’ Options with 529 Education Savings Plans

Jean Keener, CRPC®, CFDP® — Wed, 27 Jan 2010 15:00:25 +0000

Many states provide an incentive for their residents to use their state’s 529 plan through use of a state income tax deduction. Because Texas doesn’t have a state income tax, your options are really completely open in terms of what state’s 529 savings plan you use. You can go shopping for the best options and [...]

Save on Taxes With Qualified College Expenses

Erin Baehr CFP®, EA — Sun, 24 Jan 2010 22:01:47 +0000

The holiday decorations are put away, things have been tidied up and we've turned the page on another year. No need for post-holiday blues, though — a new season is coming. This time instead of opening Christmas cards, we'll be opening Important Tax Documents. With the new tax and stimulus legislation passed in 2009, this tax season is shaping up to be a confusing one. The best defense against missing deductions or credits and leaving money on the table is to be aware of the changes that apply to you and bring them up with your tax preparer. The new credit I'm happiest about is the "American Opportunity Credit" for qualified college expenses. This credit is worth up to $2,500 per dependent student on 100 percent of the first $2,000 of qualified expenses plus 25 percent of the next $2,000, for the first four years of school.[...]

20 Answers to Your Questions about 529 Plans

Jim Blankenship, CFP®, EA — Thu, 24 Dec 2009 13:00:23 +0000

Below is a reprint of an interaction that I had with an anonymous individual several years ago on a web bulletin board, as I thought the 20 questions that the individual listed might be interesting to you. I’ve reviewed the list and updated responses where laws have changed or where I was more snarky than [...]

Coverdell Education Savings Account to Change After 2010

Jim Blankenship, CFP®, EA — Fri, 04 Dec 2009 15:50:00 +0000

Yet another expiring tax provision at the end of tax year 2010 is the expansion of the Coverdell Education Savings Account (ESA) that came into effect with EGTRRA 2001. Until the end of 2010, you are eligible to make non-deductible contributions to a Coverdell ESA of up to $2,000 per beneficiary per year. These contributions are phased out ratably when your Modified Adjusted Gross Income (MAGI) is between $95,000 and $110,000 for single filers; the phaseout occurs between $190,000 and $220,000 for married persons filing jointly (MFJ).[...]

College Pricing Trends

Jean Keener, CRPC®, CFDP® — Thu, 29 Oct 2009 14:43:12 +0000

Every October, the College Board releases its Trends in College Pricing report that highlights college cost increases and trends. While costs can vary significantly by region and individual college, the College Board publishes average cost figures, which are based on its survey of 3,500 colleges across the country. Here are highlights from its latest report [...] At four-year [...]

Economic Slowdown Impacts Prepaid Tuition Plans

Jim Blankenship, CFP®, EA — Sat, 17 Oct 2009 15:56:56 +0000

Several months ago I pointed out an article where the Illinois prepaid tuition plan, CollegeIllinois!, seemed to be elated over the impacts of the economic downturn on other types of 529 savings plans. Essentially these prepaid plans offer a guarantee of value – the cost of a semester of college at an in-state public institution [...]