Questions to ask when selecting a Section 529 Plan
When comparing 529 plans, consider these questions to determine if a particular plan has the flexibility to meet your needs.
Are there state tax benefits for residents or negative tax consequences for non-residents?
What are the minimum and maximum allowable contribution amounts?
Are there any restrictions on who may be a beneficiary or what beneficiary changes can be made?
What kind of account access is available (customer service representatives available by phone, online enrollment, internet access, etc.)?
What is the process for taking withdrawals? Is paper documentation needed? Can checks be sent directly from the plan account to the school?
What investment options are available? What are the underlying funds? What are the fees? How much investment flexibility is available?
Top 10 Student Loan Tips
While these tips are intended for those who have already graduated from college, they are helpful points to keep in mind when considering student loans. For detailed information about each of the tips, see the source information below.
Know your loans
Know your grace period
Stay in touch with your lender
Pick the right repayment option
Stay out of trouble
Lower your principal if you can
Pay off the most expensive loans first
Should loans be consolidated?
Source: “Top 10 Student Loan Tips for Recent Graduates,” The Project on Student Debt, an Initiative of the Institute for College Access & Success. https://ticas.org/content/posd/top-10-student-loan-tips-recent-graduates
The College Board, paying for college. https://bigfuture.collegeboard.org/pay-for-college
com has numerous articles about savings plans, tutorials, etc. www.savingforcollege.com
Section 529 Plans
College Savings 101, “Understanding 529 Plans”, www.savingforcollege.com. http://tinyurl.com/Understanding529
“Common 529 Questions,” College Savings Plan Network, www.collegesavings.org. http://tinyurl.com/Common529Questions
“An Introduction for 529 Plans,” U.S. Securities and Exchange Commission, www.sec.gov. http://tinyurl.com/IntroTo529
“Introduction to ESAs,” www.savingforcollege.com. http://tinyurl.com/IntroToESAs
“Choosing a loan that’s right for you,” U.S. Consumer Financial Protection Bureau, www.consumerfinance.gov. http://tinyurl.com/ChoosingALoan
“Consolidating your federal education loans,” U.S. Department of Education, http://studentaid.ed.gov http://tinyurl.com/FedLoanConsolidation
Internal Revenue Service Publication 970, “Tax Benefits for Education,” covers Coverdell ESAs, U.S. Savings Bonds, American Opportunity Credit, Lifetime Learning Credit, and student loan interest and other deductions. http://tinyurl.com/IRSPub970
“Family Guide to College Saving,” by Joseph Hurley. Order at www.savingforcollege.com.
“Funding Education Beyond High School: The “Guide to Federal Student Aid.” Available at www.studentaid.gov or (800) 433-3243.
Securities offered through LPL Financial, Member FINRA/SIPC. Worksite Financial Solutions is a program exclusive to LPL Financial and its advisor partners. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
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