These programs
are often referred to as "529
Plans"
Savings programs established and
administered by States for the purpose
of setting aside savings for "qualified
higher education expenses".
A family member
setups and makes contributions to
a fund
with one of the States
that sponsors 529 College Prepaid
Tuition and/or Savings Plans.
Accumulated funds can be used to
pay for qualified college.
see
our State529 center at SayPlanning.com for detail information
and program benefits
EIRAs allow family
members to setup an custodial account
in the name of a beneficiary who will withdraw funds for the
purposes of paying qualified higher
education expenses.
The Education IRAs (EIRA) are
investment instruments for higher
education. The official name for
education IRAs is:
Coverdell Education Savings Accounts
(CESA)
see
our State529 center at SayPlanning.com for detail information
and program benefits
You can make
withdrawals from your IRAs for qualified
higher education expenses without having to pay the 10% additional
tax.
You will owe income tax on at least
part of the amount withdrawn, but
you will not have to pay the 10%
additional tax on early withdrawals.
More information from the IRS web site: http://www.irs.gov/...
The IRS allows students and parents
who file and owe taxes to claim
one of two educational credits. Tax credits reduce your overall
taxes paid dollar-for-dollar:
Provides for
a maximum $1500 per year per dependent
student is available only for the first
two years of post secondary education.
The student must be enrolled at least
1/2 of the full-time workload in
a program that leads to a degree,
certificate or other educational
credential.
Credit
can only be taken for expenses covering
tuition, fees, and and books (if the book expense was paid to
the institution on condition of
enrollment) minus any scholarships
and grants received.
Room and board,
personal expenses and transportation
are non-eligible expenses.
Some restriction apply — view
the IRS topic for more information: www.irs.gov/...pubs
Provides for
a maximum $1000 per year per family; is available for any year of post
secondary education including graduate
work.
The student must be enrolled at an eligible
educational institution.
Credit
can only be taken for expenses covering
tuition, fees, and and books (if
the book expense was paid to the
institution on condition of enrollment)
minus any scholarships and grants
received.
Room and board, personal
expenses and transportation are
non-eligible expenses.
Some restriction apply — view
the IRS topic for more information: www.irs.gov/...pubs
there may be other education benefits based on your family affiliation with the following agencies:
Department of Veterans Affairs
(VA) offers several programs administered
by its Education Services.
Aid is available for veterans, reservists,
National Guard persons, widows,
and orphans.
Programs detailed on the VA Education
Service Web site include the Montgomery
GI Bill (for Active and Selected
Reserves personnel), Veterans Educational
Assistance Program, Survivors' and
Dependents' Educational Assistance
Program, Work-Study, and Tutorial
Assistance:
www.gibill.va.gov/
Service program administered by
the Corporation for National and
Community Service.
AmeriCorps allows people of all
ages and backgrounds to earn help
paying for education in exchange
for a year of service:
www.americorps.org
Volunteer for public service after
college and have some of your student
loan debt forgiven
AmeriCorps
www.americorps.org
Peace
Corps
www.peacecorps.gov
Volunteers
in Service to America (VISTA)
www.friendsofvista.org
Variety of loans, scholarships,
and faculty loan repayment programs
available for students in the health
professions.
Help in several areas, including
dentistry, public health, optometry,
and veterinary medicine:
www.hrsa.dhhs.gov
Department of Labor program of
tuition and free assistance for
job training for the economically
disadvantaged, dislocated workers,
and others facing employment barriers:
www.doleta.gov
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