College Savings Plans

 

A College Savings Plan is a tax-advantaged savings plan designed to help pay for education.  There are 2 types of plans: savings plan and prepaid tuition plans.  Savings plans grow tax-deferred and withdrawals are tax-free if used for qualified education expenses.  Prepaid plans allow for owners to pay for tuition at a specific college or university, locking in the cost at today’s rates.  Contributions may be tax-deductible for State Income taxes.

Average Cost Chart

Qualified Expenses Include:

  • K-12 tuition expenses
  • College tuition
  • Room and board
  • Registered apprenticeship programs (up to $10,000)
 
 
Participation in a College Savings Plan does not guarantee that contributions and investment return on contributions, if any, will be adequate to cover future tuition and other education expenses or that a beneficiary will be admitted to or permitted to continue to attend an educational institution. Contributors to the program assume all investment risk, including potential loss of principal and liability for penalties such as those levied for non-educational withdrawals. Check with your state’s guidelines prior to withdrawing funds.
An investor should consider, before investing, whether the investor’s or designated beneficiary’s home state offers any favorable state tax treatment or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Consult your financial, tax, or other adviser to learn more about how state-based benefits (including any limitations) would apply to your specific circumstances.
For more complete information, including description of fees, expenses and risk, see the offering statement or program description.

 

 

Student Loan Forgiveness

Student Loan Forgiveness is a great option for those who qualify.  But there are so many programs with so many rules, it’s difficult for anyone to navigate the information to find the solution that works for you.  Our clients gain access to our knowledge of the different programs.   Below are some of the programs and links to their main sites.  


Student Loan Debt Relief

With this program, you could qualify for a one-time $10,000 or $20,000 discharge of your Federal student loan balance.  To submit an application, please use the link above and follow the steps.

Public Service Loan Forgiveness

This program offers full forgiveness for the remaining balance after 10 years (120 qualified payments) while being employed with a qualified employer.  Typically public schools and non-profit employees qualify for this program.  The key to maximizing your benefits with the PSLF is to take advantage of one of the payment plans that reduces your monthly payment.  There are ways to work within the guidelines to help you minimize your monthly payment while still qualifying for the program.

Teacher Loan Forgiveness

This program is specifically designed for public school teachers working at a qualifying school.  After 5 years, you could receive up to $5000 or $17,500 depending on what you teach.  There are many rules with this program.  Make sure you read through the guidelines to see if you qualify.


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