College Savings Plans – are they the best choice for my child?Written by Vanessa McHooley
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The money in a College Savings Plan is controlled by account owner, not child. So if child decides to not go to college, they do not have access to funds. Instead, account owner can get his or her money back (with income taxes and a 10% penalty owed on earnings) or transfer funds to another family member. Impact on eligibility for need-based financial aid College savings plans have a low impact on financial aid eligibility because they are considered an asset of account owner (usually parent), rather than student. Choosing a plan Most states have their own College Savings Plans, but you do not have to enroll in plan in your state. Look first at plans in your own state, especially if they offer tax advantages. Other factors to consider as you compare state plans are expenses and investing options. Prepaid tuition plans Another type of Section 529 plan are prepaid tuition plans. Prepaid tuition plans are guaranteed to increase in value at same rate as college tuition. So, if you purchase shares worth one semester of tuition at a state college, those shares will always be worth one semester of tuition, even 10 years later when tuition rates have doubled. These plans offer basically same tax and contribution benefits as College Saving plans, and they are guaranteed by government. However, because prepaid tuition plans are considered a resource, they reduce need-based financial aid dollar for dollar. Therefore, families that expect to qualify for need-based financial aid should avoid prepaid tuition plans and invest in college savings plans instead. Another alternative is to roll prepaid tuition plan funds over into state's 529 college savings plan before college begins. There are many advantages to college savings plans; however, there are many ways a parent can help a student pay for a college education. Make sure to research as many avenues as possible to make most informed decision on how to pay for school, and you could end up with optimal college funding solution. This article is distributed by NextStudent. At NextStudent, we believe that getting an education is best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about how to get College Savings Plans at http://www.NextStudent.com .
My goal is to help every student succeed - education is one of hte most important things a person can have, so I have made it my personal mission to help every student pay for their education. Aside from that, I am just a pretty average girl from SD.
| | Use Your Credit Cards ResponsiblyWritten by David Medlock
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•Look for Rewards: If you can, try to find cards that offer rewards for using them. Some cards offer free gasoline, frequent flier miles, cash back or other incentives for using card. •Pay Your Bills on Time: Late fees can cost anywhere from $20 - $40 for one late fee. This adds itself onto your balance and if you don’t pay it off immediately, you will pay interest on late fee as well. Late fees can put you in whole very quickly and many credit card companies may increase your interest rate very first time you are late with a payment. Needless to say, it can be very costly to be late on your payment. It doesn’t look good on your credit score, either. •Don’t Go Over: Some cards may allow you to go over credit limit you’ve been given to some extent. But, when you do this they may hit you with $20 - $40 charges, just like late fees. Again, this is bad news. It also does not look good on your credit report to have maxed out credit cards.Credit cards can very quickly get you into a lot of trouble. But, if you avoid impulse purchases, pay them off every month and make your payments on time, they can reward you for purchases and help you build up a solid credit score. Just use your cards wisely and remember that you should be in control of your credit, not other way around.
David Medlock owns GetSomePlastic.com, a premier provider of online credit card applications and instant approvals. GetSomePlastic.com always encourages responsible use of credit cards and informed decision making in financial matters. http://www.getsomeplastic.com
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