In this article, we take a look at some basic questions that a grandparent/parent faces towards financing their children's college education.
- Are you concerned about how to balance paying for college while planning for retirement? This article will help you have the best combination between your savings, borrowings, investments, and financial aid. Experts have advised that it is always better to borrow for college but save for retirement. Retirement should always have a priority higher than College Investment.
- When should you start saving for your child's education? The sooner the parents start, the more funds they will have later. Emphasis should be laid on the investment objectives, risk, charges and expenses before beginning the plan. The 529 Savings Plan helps you achieve the objective, and investors should read the document carefully before investing.
- Am I eligible for Financial Aid? The U.S. Department of Education's Financial Aid Office enlists various factors for eligibility for financial aid. The parents should visit the U.S. Department of Education's Financial Aid office about eligibility requirements, application deadlines, and type's federal financial loans and aid.
- Are Private Loans beneficial? Private Loans are provided by Banks, Financial Institutions and Credit Unions on fixed and variable interest. The student takes the private loan and is responsible for the re-payment. Private Loans are more expensive than all other forms of College Savings Plan with the only benefit of a retirement plan does not get affected. The parents only need to co-sign a loan. Student can avail the relationship discounts, automatic payment discounts, and graduation benefits.
- Does setting up an educational trust fund helps? Grandparents can establish an educational trust as per the terms decided. The terms agreed to include who gets control of money, how the funds will use it, and for whom the trust benefits.
The parents can be roped in deciding how to utilize the college savings and resolve to provide adequate financial aid to the child. To conclude, it's always a balancing act to plan for retirement, managing the investment portfolio, and financing a college education. https://www.bngwealth.com/529-college-savings-plan