What is the best way to save for college tuition?
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Best way to save to pay for college tuition?
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#1 by Judy on January 11th, 2012
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Google FAFSA application and EFC calculator
You will see a couple of things.
One of them being that if your parents have little in savings – you could get a free ride from the government in grants.
There are seminars that charge you thousands on how to do this.
The tricks are:
Get your parents to pay off their mortgage, their cars, and any debt they have.
Also tell them to put away the max in 401K plans, and IRA accounts.
This will clear their savings, which is the only thing you have to report on the FAFSA.
This needs to be done a year before you go to college, so their tax return will show little income from taxable accounts.
When you go to college, you’ll apply for the FAFSA and get tons of need – based grants along with low interest loans.
This seems unethical – and it is.
But it will maximize grants by the government.
Plus, your parents will have no mortgage, and they later can pay off your student loans.
Consider this option.
Saving money in 529′s plans will directly reduce the amount of aid you will qualify for.
Check the EFC calculator – you’ll see what I mean.
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#2 by Pari on January 12th, 2012
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stop eating so much…you will save a great deal if you lose weight and eat less…much less..that food money you are wasting on yourself should go into the childrens savings..
#3 by Ruby on January 12th, 2012
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If it is more than 10 years away, buy government bonds.
We started buying bonds for our daughter when she was very young. She got loans throughout college, and those loans do not start gaining interest until graduation.
Series EE bonds double in value at full maturity. We bought a $100 for $50 every other month. When she graduated, she cashed all the bonds and had more than enough to pay all her college loans off- everything.
Any money kept in the student’s or parents account lessens the amount of government aid the student will get. It is reported in the FASFA and other forms. Buying the bonds takes the money out of the bank so it is not reported, and puts it all back in your hands… doubled… when it is time to use it.
I believe EE bonds take 14 years to reach full maturity. Consider that they will gain interest the 4 years she is in college too.
It was so simple and worked so well for us. I don’t know why more people don’t do this.