Comments on: GF¢ 037: 4 Ways to Save for Your Kids’ College Education (Including What I Chose)

By: Jeff Rose

Jeff Rose — Wed, 04 Mar 2015 05:25:14 +0000

In reply to Jack. @Jack That is correct. You'll be able to take out the scholarship amount without having to pay the penalty.

By: Jack

Jack — Tue, 03 Mar 2015 17:33:21 +0000

What happens if your child receives a scholarship? It is my understanding that this would make the 10% penalty for taking out the money go away. Obviously, you would still have to pay taxes on gains.

Thanks for your response.

By: Gary Adcock

Gary Adcock — Mon, 26 Jan 2015 09:15:17 +0000

Jeff one of my grandsons got two Associate degrees from Rend Lake then was not happy with the choices at SIU C or SIU E. He then found that Portland State in Oregon had what he wanted but didn’t have the money he needed, to make a long story short he ended up joining the Oregon National Guard as they told him they would pay for his two remaining years to get his Bachalor degree so he signed up with them. After he served his six months of active duty they refused to pay for the rest of his education and he is now stuck with a huge stundent loan, the Army National Guard cliam the papers were not filled out correctly and have refused to pay anything. I help when I can or if he gets in a bind but it ticks me off as he is still in the National Guard and has been told he is deployable but it is he and I that is paying off a student loan. I am upset with this but I will always support our troops no matter what but I can’t help but to feel the have done my grandson wrong.

By: Jeff Rose

Jeff Rose — Wed, 17 Sep 2014 04:27:51 +0000

In reply to Sherry. @Sherry We do have 3 separate accounts for all 3 boys. You don't have to do it that way but for us it's easier to keep track.

By: Sherry

Sherry — Sun, 14 Sep 2014 16:45:32 +0000

Hi Jeff,

Love both yours & your wife’s blog!!

Do you have a seperate account set up for all 3?
I set 1 up for my daughter when she was born, but haven’t done a seperate one for my son. I’ve been justifying it by knowing I can use it for either. Just wondering what others are doing?

By: Taylor Lee

Taylor Lee — Thu, 04 Sep 2014 22:41:03 +0000

Another thing to consider for 529 versus UGMA is that the UGMA is considered to be the “student’s.” Often for college financial aid (at least when I attended < 5 years ago), student assets were considered more "fair game" than parent assets, so having money in a 529 would increase the student's perceived need over UGMA (which meant more financial assistance from the school).

By: Stefanie @ The Broke and Beautiful Life

Stefanie @ The Broke and Beautiful Life — Thu, 04 Sep 2014 12:49:31 +0000

I don’t have kids yet so I’m not overly concerned about which savings vehicle to use just yet, but I am increasingly skeptical of the value of the four year degree. I wonder if 529’s can be used for other schooling/training alternatives.

By: Addi

Addi — Thu, 04 Sep 2014 01:24:54 +0000

Great post! I also have 3 boys and my husband and I recently did a 529 savings plan for each of them.

By: Jeff Rose

Jeff Rose — Tue, 19 Aug 2014 03:11:05 +0000

In reply to Jon. @ Jon The have changed the rules on Coverdell ESA's so much that they are very restrictive and you can tell that IRS is making the 529 the more attractive choice between the two.

By: Jon

Jon — Tue, 19 Aug 2014 00:58:18 +0000

What about Coverdell ESAs?