Category Archives: Cost saving strategies

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?

Colleges Still Have Openings for Fall ’17

Further confirming that college can be a buyer’s market, the National Association for College Admission Counseling’s annual College Openings Update: Options for Qualified Students (a list of schools still accepting applications after May 1) shows an increase in the number of schools still accepting applications compared with last year. In fact, the number has gone up every year since 2013; it increased by about 20% from 2016 to 2017. Continue reading Colleges Still Have Openings for Fall ’17

Dear Tyler & Isabella, Let’s Pick a College

Today’s post is written by a fellow fee-only advisor, Richard Freight, CFP®, EA, of IAM Financial, who is a father of two who will hopefully be college-bound. 

tyler and isabella

Dear Tyler & Isabella,

These are some of the things I want you to consider when choosing what and where to study in college…..

When the time comes for my son Tyler, and my daughter Isabella, to go to college, I image us having this wise and thoughtful conversation around the pros and cons of this Continue reading Dear Tyler & Isabella, Let’s Pick a College

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

Negotiating an Aid Award

My apologies if this is a little down-to-the-wire. Then again, you might do better waiting until the last minute to negotiate an aid award. If you’re planning to do so, here are a few things you need to know.

The first step is to determine what type of aid is being offered, need or merit (or a Continue reading Negotiating an Aid Award

How America Pays for College

Sallie Mae’s annual How America Pays for College report has some good news: In the 2015-2016 school year, the average amount families spent on college went down slightly, to $23,688. The biggest decline came on spending for 2-year colleges; families with students in 4-year schools reported spending about the same as in the previous year. In Continue reading How America Pays for College

Tax Season Tip: Income

Since taxes seem to be top-of-mind for everyone, here’s a quick tip for bringing your income down on the FAFSA or CSS PROFILE: Don’t get a state tax refund. If you do, you have to report it as income. Check with your tax preparer to determine the right amount of state withholding that avoids both a refund and a penalty for underpayment. If you use tax software like TurboTax, it can calculate correct state withholding as well.

Income-Driven Payment vs Forbearance

Navient, the largest servicer of student loans, has been in the news this past week because it is being sued by the Consumer Financial Protection Bureau and several states’ attorneys general. One of the CFPB’s charges is that Navient steered borrowers into forbearance instead of income-driven repayment, which often results in borrowers owing considerably Continue reading Income-Driven Payment vs Forbearance