College Planning
Can you afford to go to college?
A strategic game plan is essential for your passion to put into action. Have a game plan for your dream college. Developing your passion and putting it to the next level is quite challenging. Finding the best way to fund your college tuition is one of them. Please reach us for guidance on our unique college programs.
In order for us to get a good paying job in the future, we must get a better education. Going to college and pursue our dream is very challenging and we need all the support we can get. Early and proper planning is essential. The rising cost of education makes more tougher for the students to afford the college tuition fees.
Paying For College
An increasing cost of college education puts a financial burden to our dreams.
Let us talk the options for paying for tuition.
Options for Paying College
There are several options on how to pay for college tuition fees.
Merit-Aid
- One of the options for paying college tuition fee is merit-aid. This is not based on the financial needs of a student but an award to student who achieved certain skills such as academic, music, athletics, etc.
Loans
- Federal student loans for a low interest and no payments required while you are still in school are the most common options to pay for college tuition. They are required to file Free Application for Federal Student Aid form completed by current and prospective college students in the United States to determine their eligibility for student financial aid.
Scholarship
- Scholarship from different sources are financial aid awards to help student pay their tuition. These are different from student loan because they don’t have to be repaid.
Work-Study
- The FWS Program provides funds for part-time employment to help needy students to finance the costs of postsecondary education
Parents
- Some parents will pay a portion or the whole tuition for college. This will help the kids wrap up with debts when they graduate.
529 Plans
- Allows tax-deferred saving with tax-free withdrawals. The downside is that it counts as an asset when you apply for financial aid, while a life insurance policy doesn't.
Serving in the Military
- Enlisting in the military service is one of the way to pay for your college tuition. The government will pay 100% of the college tuition fees while serving in the military service.
Other Savings Plan
- Although Roth IRA is for retirement, this can be use as a savings plan for college. It grows tax-free but the downside is that it has a very low minimum yearly contribution. Another option for saving account is opening a UTMA account for your kids.
IFS Unique Strategy
- This is one of the best alternative way of funding college funding tuition fees. You have easy access to the money and its transferable. The money will grow tax deferred in the account.
Pros and Cons of 529 Plans and IFS Unique College Program
Savings plan 529 is the most common option known to most people. It has its own advantages as well as disadvantages. However, there is another option that might be beneficial to most people. Below are the pros and cons of these two options.
Pros and Cons of 529 Plans and IFS Unique College Program
529 Savings Plan
(Pros)
- State may offer income tax deductions
- Tax-free growth
- No taxes on withdrawals for qualified expenses
- No income or age limits
- Large contributions are permitted depending on state rules
- Can switch beneficiaries
IFS Solution (Pros)
- Money can be use for qualified as well as unqualified expenses
- Tax-free growth
- No penalty even if money is withdrawn for unqualified expenses
- Does not participate in market downturn, safety, zero risk
- Money does not affect in applying for loans, grant, scholarship and any financial aids.
529 Savings Plan
(Cons)
- Have to use money for intended purposes only or pay penalty
- Limited to only one beneficiary
- Limited choices of investments
- Risky, could potentially loss your investments if choose unwisely
IFS Solution (Cons)
- You have to in standard healh or better
- The earlier to start the better.