The basics of saving for college
Saving for college can be a challenge, but there are personal financial benefits of higher education.
529 plans are tax-advantaged savings programs that allow you to save for your child’s college funding.1
Coverdell Accounts, UGMA/UTMA custodial accounts, and U.S. Savings Bonds are several savings options for college.
Children can earn money, learn about sources of financial aid, research potential colleges, and take other steps that may relieve their parents of some of the responsibility of college planning.
There are thousands of scholarships available that can come from the federal government, your state government, your college or career school, or private or nonprofit organizations. Here are tips to help you find the aid you may need.
Federal and state financial aid and loan programs can help pay for college or career school.
1. Investing in 529 plans involves risk, including loss of principal. Before you invest in a 529 plan, request the plan’s official statement and read it carefully. The official statement contains more complete information, including investment objectives, charges, expenses, and the risks of investing in a 529 plan, which you should carefully consider before investing. You should also consider whether your home state or your beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s 529 plan. Section 529 plans are not guaranteed by any state or federal agency. By investing in a 529 plan outside of the state in which you pay taxes, you may lose the tax benefits offered by that state's plan. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary.
Information provided in these articles has been prepared from sources and data we believe to be accurate, but we make no representation as to its accuracy or completeness.
AXA Equitable Life Insurance Company (NY, NY). Securities are offered through AXA Advisors, LLC, NY, NY 212-314-4600 (member FINRA / SIPC). AXA Equitable and AXA Advisors are affiliated companies and do not provide legal or tax advice or services.