college savings plan

To prepare for the high costs of college education, some students or parents of students may enter into what is known as a college savings plan - a plan, usually state sponsored, which allows funds to be set aside for the cost of education without taxes being removed from the money. These savings plans, officially known as the Qualified Tuition or 529 saving plans, exist in most of the 50 states in the US. In each state where they exist, the specifics of the college saving s plan may vary, but they are generally applicable at most schools and don't have as much of a bearing in determining financial aid. With the funds that are saved using a college savings plan, the many needs of education can be properly paid, including tuition, books, fees, and room and board.

Fast Facts

A Coverdell savings account saves up to $2,000 per year, tax free
Savings Bonds bought and used for purposes of college tuition are eligible for tax deferment
Nearly 9 million 529 savings plan accounts existed in 2006

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529 College Plan Savings

Are you concerned about your ability to pay for your kids’ college education? Maybe it’s time to take a look a...
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Custodial College Savings Accounts

In many ways, custodial savings accounts are similar trust accounts. In both, a person who is not the benefici...
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College Savings Bond

College savings bonds are tax-exempt, zero-coupon bonds issued by a state to help families of that state save ...
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EE Series Bond College Savings

Series EE savings bonds are one of the safest savings products available. The series EE bond yield is currentl...
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Series Savings Bond Types: Advantages and Disadvantages

Savings bonds have been a staple in American living for decades. These may be one of the safest investments ...
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