Ask This When Planning a College Savings Strategy

As college tuition and costs continue to rise faster than inflation rates, planning ahead for school tuition and other costs is more important than ever. Answers to a few basic questions may provide you with the insight needed to make the most of your efforts and financial decisions.

5 Comments

  1. AskThisWhen on July 22, 2015 at 12:19 pm

    Are Scholarships or Grants Available?

    Yes! The number of scholarships available is vast and continues to grow. Military scholarships, academic scholarships, and first-in-family scholarships, are just the tip of the iceberg. Federal Pell Grants are also available as long as you meet a certain criteria.

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  2. AskThisWhen on July 22, 2015 at 12:19 pm

    Can savings allow me to avoid student loans completely?

    Tuition, cost of living and other expenses such as living arrangements and text books can quickly add up. While more aggressive savings goals and investment planning that will ensure superior returns may be needed to cover all the related expenses needed to attend college, even modest savings can alleviate the need to seek out financial aid and student loans. The more expenses you are equipped to cover out of pocket, the less likely you or your children will be to end up in long-term debt.

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  3. AskThisWhen on July 22, 2015 at 12:19 pm

    How should I invest my savings?

    For inexperienced investors, mutual funds able that have a successful three or five year history of providing investors with superior returns are often the best place to begin investing. Long-term bonds can also be an attractive option during the early phases of saving for college, although stocks and other short-term investment options may prove more rewarding in later years. Simply placing your savings in a savings account could prove to be a very costly mistake as such an option may do no more than keep pace with inflation rates over the years. A sound investment strategy and a diverse portfolio could hold the key to achieving even the loftiest of savings goals.

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  4. AskThisWhen on July 22, 2015 at 12:20 pm

    Can tax credits help to reduce tuition costs?

    Many parents may be able to qualify for federal tax credits that may reduce the overall cost of tuition. The Lifetime Learning Credit or The American Opportunity Tax Credit (AOTC) could make a substantial difference in the out of pocket costs needed to attend college and complete a degree. Learning more about any tax credits or financial assistance programs that may help to defer the costs of tuition can be an important step in your efforts to cover the costs of your child’s education.

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  5. AskThisWhen on July 22, 2015 at 12:20 pm

    Should I seek help from an investment service?

    Investment services, managed funds and other financial opportunities that will allow you to benefit from the experience of an industry professional could prove to be valuable resources. Simply sitting down with a professional in order to discuss your savings goals and which options may be more likely to provide you with the level of results you seek could make more of a difference than you might imagine. The guidance, assistance and opportunities that only a financial professional may be able to bring to the table could be a key asset for parents who are interested in implementing a college savings strategy best suited to their current budget and future needs.

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