What is a 529 Plan?
Planning and Saving for College?
Certainly not all families are in a position to plan and save an adequate amount to pay for all of their children's college costs and some, because of their difficult circumstances, cannot save anything at all. Nonetheless, there are many families, in setting their priorities in life, who could manage some amount on a regular basis. The earlier this can begin, the more there will be when the day for college arrives...and the easier it will be to pay. There will be less need for financing and more choices of college to consider.
The federal government changed the federal tax law several years ago by authorizing "529" plans. Every state in the country now offers one or more of the tax advantaged ways to save for college. More information about all of the 529s programs, including the Private College 529 Plan, can be found at www.TomorrowsTuitionToday.org.
Despite the highly exaggerated myth that suggests that everyone who plans and saves for college will not receive financial aid but rather be fatally punished by the student aid process, the family that can manage some saving, even at the most modest level, will find itself much better prepared to provide the maximum choice for their children (and for their grandchildren also).