Learn The ABCs of covering college costs
This used to be the path to college: Study hard, get good grades, ace the SAT. With tuition soaring, there’s a new formula: Invest early, get good returns, pray for a great financial aid package. Who ever dreamed covering costs would be harder than passing physics? Fortunately, our CFS* Financial Representatives are good tutors. They educate parents about all the different types of education savings plans. If they help you make a good choice, maybe you’ll give us an A for effort.
Here are the Education Savings Accounts you’ll learn about from CFS Financial Representatives.
These investment accounts grow tax-free, and proceeds are withdrawn tax-free, as long as the money is used for qualified financial expenses.
COVERDELL EDUCATION SAVINGS ACCOUNTS
Similar to 529s in tax benefits, Coverdell accounts can also be used to pay for private elementary and high school tuition. However, there is a $2,000 limit on annual contributions.
UGMA and UTMA CUSTODIAL EDUCATION SAVINGS ACCOUNTS for Minors
These accounts allow parents to protect the assets of minor children. These accounts are taxed. However, there are no contribution limits.
Representatives can answer questions frequently asked by parents. They include: Can I access the money in an education savings account in the event of an emergency? And, how does an education account affect a student’s financial aid award?
Grandparents often want to contribute to 529 Plans. CFS* Representatives can explain if the money in the account might affect their Medicaid eligibility.
There’s no denying the benefits of an education: the ability to compete in today’s job market, increased earning power, and expanded horizons. But these advantages come at a price. And yet, year after year, thousands of students graduate from college. So, how do they do it? Whether they want to grow up to be a farmer or a firefighter, as parents and grandparents we want to support them and their dreams, as best we can.
At Workers Credit Union, one of our CFS Financial Representatives available through CUSO Financial Services, L.P. * can help you; help your children and grandchildren by uncovering what’s best for your family.