Apologies for my recent absentee-ism. Between our (hopefully) last college visit and my nephew’s wedding, it’s been a busy couple of weeks here! Our hopefully last college visit was with both kids at our in-state flagship school. My son loved it; it’s where he was already intending to go and the visit really confirmed that, as well as increasing his…
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529s are a source of a bit of confusion when it comes to filling out the FAFSA. Here are some common issues: 529s for multiple children: All of the parents’ 529s get reported on the FAFSA as parent assets. Let’s say you have 3 children, ages 17 (the one whose FAFSA you’re completing), 15, and 12, and you have a…
Schools are required to publish a Cohort Default Rate (CDR), a useful but limited statistic showing the default rate of student loan borrowers from that school. Why is it limited? Because data is limited to federal loan programs and to students within three years of graduation. That tends to omit two groups of students with a higher-than-average likelihood of defaulting:…
529s really started to gain popularity after 2001, when qualified distributions became tax-free. Up until then, UTMA accounts were a more popular option to save on behalf of a child, and they have remained widely used. However, as financial aid calculations and rules have become more codified, the UTMA has become far less beneficial as a college savings tool. That’s…
529 plans definitely fall under the heading of Not All Created Equal. The good news is, if you’re in a bad one, it’s pretty simple to make a change and the only cost should be your time to make the change.