How to pay for college Payment Plans VS 529 Plans VS Student Loans
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- čas přidán 28. 08. 2024
- In this video, we discuss "What is the best way to pay for college Payment Plans VS 529 Plans VS Student Loans." In this video we discuss ideas and strategies to pay for the college tuition bill. The choices range from using a monthly payment plan or using the 529 college savings plans or going with a student loan. A 529 plan is a tax-advantaged savings plan designed to help pay for education. Originally limited to post-secondary education costs, it was expanded to cover K-12 education in 2017 and apprenticeship programs in 2019. The two major types of 529 plans are savings plans and prepaid tuition plans. Savings plans grow tax-deferred, and withdrawals are tax-free if they're used for qualified education expenses. Prepaid tuition plans allow the account owner to pay in advance for tuition at designated colleges and universities, locking in the cost at today's rates. 529 plans are also referred to as qualified tuition programs and Section 529 plans.
Tuition payment plans spread out college fees into installments so you can pay over time (usually up to one year) instead of making one lump sum payment. They can also be a great alternative to borrowing loans. A tuition payment plan splits college bills into equal monthly or academic term payments. We discuss the Subsidized and Unsubsidized Federal Student loans from completing the Fafsa form. We also go into detail about the Parent Plus Loan. All to help you understand the process and help pay for the college cost. We discuss where to complete the paperwork on studentloans.gov and what forms you need to complete like the master promissory note and the Entrance Counseling paper work on studentloans.gov to get the $5,500 federal student direct Subsidized & Unsubsidized Federal Direct Student loans. Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. A PLUS Loan is a student loan, which is part of the Federal Direct Student Loan Program, offered to parents of students enrolled at least half time, or graduate and professional students, at participating and eligible post-secondary institutions.The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans. (Some people refer to these loans as Stafford Loans or Direct Stafford Loans.) To receive either type of loan, you must be enrolled at least half-time at a school that participates in the Direct Loan Program. Generally, you must also be enrolled in a program that leads to a degree or certificate awarded by the school. Direct Subsidized Loans are available only to undergraduate students who have financial need. Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students. You are not required to show financial need to receive a Direct Unsubsidized Loan.
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Wow, must pay attention to those numbers. Thank you. Roxbury high school senior parent here.
Thank you for watching your high school has been counted
Thank you, good stuff on the 529. Class of 2022, Senior at Middlesex High School, Middlesex, NJ
Thank you for watching your high school has been counted
Wish our 529 could pay their entire tuition. Thank you for the info. Roxbury high school senior parent here.
Thank you for watching your high school has been counted
Thank you for the very helpful information - Great tip re: Health insurance, if don't need from college, reducing bill and ALL the other items to be aware of.
Thank you Barbara for watching
Rewatched this in preparation for our loan meeting - very helpful. Thank you!
Glad I could help
Thank you, Class of 2022, Middlesex High School Senior. Middlesex, NJ.
Thank you for watching your high school has been counted
Thabk you for all of the information. You really help. My daughter attends Bryant High School in Arkansas, class of 2023. She is wanting to attend Harding University (Architecture). Harding cost for Freshman year will be approximately 32K. Thank again.
Very helpful information. Pequannock Townshio HS Class of 2023!
Your videos are a lifesaver, thanks.
Ed, thanks for the great information. Will you update this video given the different financial environment we are now in? Interest rate increases have goosed the 529s but driven loan rates up into near double digits. Would love to hear your advice. Love the scholarship idea: my son is the class of 2024 at St. Anthony's HS in South Huntington, NY. Thanks.
Thank you, Pequannock Township High School Senior 2022
Thank you for watching your high school has been counted
Luv the health insurance tip. Really wish I had started a 529 plan early. Daughter chose a private needs based school so no aid 😩Pequannock Township HS class 2022
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Wonderful content for everyone! Thank you for keeping it real :)
Thank you for watching your high school has been counted.
Thank you for your video. How to pay for college Payment Plans VS 529 Plans VS Student L. Ridgefield Park high school Ridgefield Park New Jersey class of 2022
Thank you for watching your high school has been counted
Very helpful and clear. Much appreciated
Thank you for watching and commenting we are using the videos to create scholarships so the more you watch the more it helps.
Helpful information. Thank you!
Thank you for watching and commenting we are using the videos to create scholarships so the more you watch the more it helps.
Great video. Thank you for the amazing content. If we’re paying from a 529 does it still make sense to use the college’s payment plan if we can? Does it change things if our 529 has taken a hit this year in earnings?
Amazing information
Thank you for watching
Great video, very informative, thank you!
If I am on my junior year and after FA my balance is less that 1k, but I want to take minny semester classes and FA will not cover those; would it be better to get a subsidized loan than to get a payment plan so that I can have enough $ to pay for those future minny semesters?
I have no student debt
Please discuss the current high inflation and likely dramatic increase in interest rates over the next 4 years. If 529 plan can pay for 1 or 2 years and high inflation/interest. Doesn't it make more sense to take loan for first year when interest is expected to be the lowest in the 4 year experience than waiting until last year? Also you mentioned interest adding to it but wouldn't that not be an issue if start making payments right away?
Great video!!!
Thank you!!
Very informative.
Please talk about how to maximize free money such grant and scholarships.
I have more videos coming on these topics
Thanks Ed, Morris county school of technology 2022
Thank you for watching your high school has been counted
Great video. Lots to start thinking about. Pequannock Twp HS Class of 2024
This whole process is so difficult to understand. I thought I was someone with average intelligence until my kid needed a loan for college.
Fantastic stuff, thank you
Thank you for watching and helping the scholarship program.
Great information! Thank you!
Thank you for watching
Can you please explain529 vs utma savings for college? I’m reading 529 is better to have and utma goes against ability for aid , and you may or may not be able to transfer money from utma to a 529 plan before doing the fasfa
Hi I am a USA citizen living abroad. ı missed extension daedlines for 2021 taxes.. But I have 2020 taxes. should I choose the ' will not file ' option and enter 1040 informations from 2020 manually? or retrieve 2020 info. from IRS automatically? thank you. your video is very helpful.
I called and told my son have insurance and it's with 5 miles away and there response was still need health insurance through college can they do that
Thank u!!!
My son was accepted into the honors program for a college where the NPC estimated a 45k grant but the award letter only has 39k. Is this appealable?
Hi Ed .... Do you consider DPT a career that warrants student loan debt (40,000 plus a year) Schooling will be 6/7 years.
Also, once loan is taken out for the year, do you or can you start putting money towards paying off?
Physical Therapy usually pays off but of course limiting the debt is key
Thank you
The school offered subsidized loan $1227 and $4223 subsidized. Is there a way to increase the subsidized loan?
That would be because of lack of need to that college unless your 2021 taxes are lower they can't
here is my question, my senior has been accepted to schools in state and out of state. he is interested in physical education major. we do NOT have much in savings (maybe 2-3 thousand). we have not received any information in regards to financial aid. our house hold income only crack 100k in the last five years. what would you suggest?
and we have a junior looking into his future plans too.
After looking at Sallie Mae...Does it make more sense to select variable apr of 3.37% or fixed 5.49%? I know you said in the video best to find less than 4%
With rates likely going up I would look to lock them in now. Variable would be risky know.
Also thank you for watching we are using the videos to create scholarships so the more you watch the more it helps.
Are colleges going to discount having multiple children in college simultaneously because of new legislation ?
IHA 2023
What is your audience demo? Who are these rich people? 😆
You talk too damn much too long doing too much
Great video!!!
Thank you for watching and helping the scholarship fund