Category Archives: 529 Plans

What to do with Summer Job Money?

The change in the FAFSA’s timing from winter to fall has some potentially unforeseen consequences. One is student summer jobs. Even at minimum wage, a student who worked full-time for the summer may have earned $3,000 or more. Students who saved their summer income with the intent to spend it over the course of the school year may Continue reading What to do with Summer Job Money?

FAFSA FAQs 2

Q: I won’t qualify for financial aid. Do I need to fill out the FAFSA?

A: Yes! Regardless of whether you think you’re eligible for aid, you should complete the FAFSA. You have to complete it if you (or your student) intends to take out federal student loans, which are available to anyone regardless of need. If you have any intention of borrowing, the Direct Student Loan should be your starting point. Plus, some Continue reading FAFSA FAQs 2

Getting Money out of Your 529

Many of you have already made your first tuition payment; apologies if this is coming too late! If you’re getting to the point of making college payments, you need to make sure the relevant bank accounts are attached to your 529 plan. If you’ve been contributing to the plan, it’s pretty likely that yours is already. But your student’s probably isn’t, and if you want money from the 529 distributed to them (here is a previous post on why you Continue reading Getting Money out of Your 529

Summer Jobs and FAFSA

The FAFSA’s new timing– fall instead of spring and prior-prior income year– means that many students’ summer jobs will have a bigger impact on their EFC. That’s because any amount of money they made that is still in their bank account when they fill out the FAFSA is an asset that will be assessed at 20%. (Remember, students don’t get an asset protection allowance.) Need-eligible families may want to consider a couple of steps to Continue reading Summer Jobs and FAFSA

Can You Use a Roth IRA for College? Should You?

Today’s post is written by a fellow fee-only advisor, Greg Phelps, CFP®, CLU®, AIF®, AAMS®, of Redrock Wealth Management

Saving for a child’s college education is perhaps one of the most noble things a parent will ever do. It’s also one of the toughest financial goals to tackle, because similar to healthcare costs, college expenses have risen across the board at 5% per year. Continue reading Can You Use a Roth IRA for College? Should You?

Planning for College Cash Flow

Before you sign up, you have to figure out how you’re going to pay for college each year. The first step in figuring that out is confirming with the school what has to happen for your aid package to be renewed. Then, consider the additional costs that aren’t included in the award letter—travel to and from school, activities your student intends to participate in, spending money. With all of those items written down, you have a good sense of what you’ll actually spend each year. This may seem really elementary, but most Continue reading Planning for College Cash Flow