Financing Post Secondary Education & Training Options...
...Savings Programs Are The Best Place To Start
by Randy Rivers
September 08, 2007
For Parents…
Kansas Learning Quest: Offers education savings accounts to help pay higher education expenses for individuals you designate or for yourself. The program also provides tax advantages under both state and federal laws. For more information: https://www.learningquestsavings.com/learningquest/index.jsp
Education Savings Account: For each child under 18, families may deposit $2,000 per year into an Education IRA. Earnings would accumulate tax-free and no taxes will be due upon withdrawal for net post-secondary expenses such as tuition, fees, books, equipment and room and board. For more information contact a financial planner or mutual fund company. http://www.irs.gov/publications/p970/ch07.html#d0e7081
IRA / 401(k) and 403(b) Withdrawals: Taxpayers may withdraw funds from a tax-deferred savings account, without penalty, for the higher education expenses of the taxpayer, spouse, child or grandchild. The amount that can be withdrawn without penalty is limited to net post-secondary expenses for tuition, fees, books, equipment and room and board. For more information contact your financial planner or fund administrator.
Uniform Gifts / Uniform Transfers to Minors Acts (UGMA/UTMA): Enables you to make a gift to a minor. You may designate yourself or another adult to act as custodian for the minor’s account. The minor is still the beneficial owner of the shares and account earnings and transactions are reported to the IRS under the minor’s social security number. When the child reaches the age specified in the state’s act, the custodian is legally required to transfer the shares into the name of the minor. For more information, contact a financial planner.
For Students…
Americorps: Interested in community service for economics, social or environmental change? Are you at least 18 years old? Once you one-year service is complete, you are eligible for and educational award (about $4,700), which you can use to pay tuition or other expenses or to repay educational loans. Visit www.americorps.org
Work Study: Work-study is awarded to you base on how you fill out the FAFSA. If you’re eligible and funds are available, it will show up on your award letter.
Next Step: Scholarship Searches – utilize free Internet databases such as www.fastweb.com ; www.collegeanswer.com/index.jsp ; www.freschinfo.com/ .
Finally: Fill out your FAFSA (Free Application for Federal Student Aid) www.fafsa.ed.gov/ for all possible federal aid you are eligible for. See separate article on completing the FAFSA
More Help Applying for Federal Aid: 07-08 High School Counselor's Financial Aid Handbook
Financing Post Secondary Education & Training Options...
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