Preparing for a child's college education can often be daunting, and many families wonder if they have waited too long to begin saving— an understandably common concern given that college students and their families pay 48 percent of college costs out-of-pocket. However, even if you have only recently started thinking about saving for college, there are several approaches that may prove to be beneficial.
College savings got a major upgrade with the recent passage of Secure Act 2.0. 529 plans, already a powerful tool for education funding, now offer even more flexibility and benefits for families planning for the future.
Preparing for college while still in high school can be difficult for even the most academically-minded student. These days, you need to excel in the classroom, make sure you're involved in extracurricular activities, and enroll in challenging classes to impress a college admissions board. On top of that, the financial cost of higher education may add to what is already a stressful time in an ambitious student's life. Luckily, with a little preparation, you may be able to make applying for financial aid painless and stress-free. Read on to learn more.
Remember when a college education was reasonably priced? In the past 20 years, the cost of college tuition for public universities has risen 165%. College students and their families have been taking on more and more debt, and they are taking longer to pay it off. Recent data bears this out. In 2021, 34% of adults aged 18 to 29 years have student loan debt, making them more than twice as likely as adults in any other age group to have student debt.1,2
529 plans can be a great way to save for college, but they're not the only way. When you're investing for a major goal like education, it makes sense to be familiar with all of your options.
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