How to fund a college education

[Alsky]

Any good ideas, companies and plans on how to fund a college education.

Of course a life insurance policy is a good start in the event of a pre-mature death, but any other ideas on a systematic plan and a good company to achieve this with?

Are the SECTION 529 SAVINGS PLANS the best thing going now or can someone suggest a better plan or other ideas using insurance. Thanks, Al

 

[bluemarlin08]

The best plan is to have a well educated child that has a high GPA and scores high on ACT and SAT and takes advanced courses in high school. If they do this they will more than likely get full scholarships, mine have, have one starting college this fall, full ride.

 

[CHUMPS FROM OXFORD]

529. Not tax-deferred, but tax-free. Exempt from State taxes as well if you use your State plan. Easily transferable.

Plenty of funding options. Fees aren't like a Vanguard account, but still the best option out there.

 

[zackarychapple]

Apart from the kid needing to get a good act and good gpa, money is important, nothing is worse then having a bunch of money put away in a 529 or a CD and going to apply for financial aid or scholarships and they look at how much money you actually have. What most people don't realize is that the money in your 529 and your savings, checking, and yes CD's count against you on the FAFSA, best place for that money, cash value life, UL's or EIUL's they don't show up on the FAFSA app.

Zack

 

[trvlnut]

Check out this link. They go over everything..even permanent insurance.

http://www.savingforcollege.com/

 

[J.R.]

Any good ideas, companies and plans on how to fund a college education.

Of course a life insurance policy is a good start in the event of a pre-mature death, but any other ideas on a systematic plan and a good company to achieve this with?

Are the SECTION 529 SAVINGS PLANS the best thing going now or can someone suggest a better plan or other ideas using insurance. Thanks, Al

I recommend Military Insurance. Devote 2-4 years of your life to a trade you are interested in and get enough money via a GI Bill to get a few degrees. Use financial aid for the rest and take your time paying it off at the 2-3% current interest rate.........

 

[Alsky]

Apart from the kid needing to get a good act and good gpa, money is important, nothing is worse then having a bunch of money put away in a 529 or a CD and going to apply for financial aid or scholarships and they look at how much money you actually have. What most people don't realize is that the money in your 529 and your savings, checking, and yes CD's count against you on the FAFSA, best place for that money, cash value life, UL's or EIUL's they don't show up on the FAFSA app.

Zack

This is a grandparent wanting to contribute to her grandsons college ed so the cash in the 529 will not jeapordize future scholarships... but you are absolutely correct if this was a parent saving for the childs education.

Im thinking that a 529 is the best way for her to go even though I will give up a commision for an insurance sale by advising her to do the 529. I just dont see how a UL is going to accumulate enough cash unless she dies before the kid needs the funds for school. She has been rated up on a prior life policy she has purchased from me, so the cost may be prohibitive as well.

Thanks,
Al

 

[djs]

I just dont see how a UL is going to accumulate enough cash unless she dies before the kid needs the funds for school. She has been rated up on a prior life policy she has purchased from me, so the cost may be prohibitive as well.

Thanks,
Al

Place the UL on the child, not the adult. You can then overfund it to build value. If you're not able to write the 529, I assume you can't write the VUL either though. Of course, the 529 is a much better way to go.

Dan

 

[CHUMPS FROM OXFORD]

I rarely recommend a life insurance policy to fund college education. It rarely makes sense. C'mon. A policy that pays 55%-95% FYC is not going to be liquid in the early years.

Stick to 529s or certain trusts.

 

[CHUMPS FROM OXFORD]

"Im thinking that a 529 is the best way for her to go even though I will give up a commision for an insurance sale by advising her to do the 529."

That's a strange statement.