Part of President Obama’s proposal to “simplify the tax code” includes significant changes to the tax treatment of 529 plans and Coverdell ESA accounts: for new contributions (i.e, after enactment of this proposal, should that happen) distributions would no longer be tax-free, even if they are used for qualified education expenses. The proposal doesn’t just remove benefits; it also expands the…
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Student Loans
According to a recent study by Nerdwallet, here, only about half of high school seniors completed the FAFSA in 2013. Admittedly not all high school seniors go on to college, but much of the aid that is awarded through the FAFSA, including Pell Grants, can be used to pay community college and vocational school costs. In addition, you need to…
Get ready: the FAFSA is coming. The 2015-2016 FAFSA will be available in just a couple of days, on Jan. 1. Here are some common mistakes people make in completing the FAFSA: Not doing it: Yes, the FAFSA takes time but no, you should not skip it, even if you don’t think you’ll be eligible for aid. Why not? Because…
Wondering what the student debt picture looks like at schools you’re interested in? The New York Times has a new calculator here that shows specific schools’ graduates’ average debt levels, plus what the monthly payment on those debts looks like, how much interest you’ll pay, and how much the new graduate would need to earn in order for that debt…
Many borrowers, especially parents and grad school graduates who took out PLUS loans, are stuck with high fixed interest rates on their student loans. In the past year, though, several companies have started refinancing services that seem to be above-board and might be worth a look. Credible provides a marketplace in which graduates can complete a single profile form with their…