Wait Til I get my Money Right Paying for College Wait Til I get my Money Right

How the Typical family pays for college 2014-2015 Average percent of total cost paid from each source http://news.salliemae.com/files/doc_library/file/HowAmericaPaysforCollege2015FNL.pdf

How to pay for college Free Money Earned Money Reduced Costs Borrowed Money How to pay for college

The Right Way Plan Where are you going? How much does it cost? Prepare How are you going to pay? How much do you plan on making?

How much will it cost? According to the College Board, the average cost of tuition and fees for the 2014–2015 school year was $31,231 at private colleges, $9,139 for state residents at public colleges, and $22,958 for out-of-state residents attending public universities.

Cost of Attendance (COA) Tuition and fees Room and board Books and supplies Transportation Miscellaneous personal expenses These are the federally determined components of the cost of attendance. Each school determines its own COA. 6

The Evil Student Loan $1,361,294,997,632.99 http://collegedebt.com/

Long– Term Solutions

Key benefits of a 529 savings plan 529 College Plan Key benefits of a 529 savings plan Tax benefits – no taxes when used for school expenses Flexibility: Use the money at eligible accredited post-secondary institutions nationwide, including undergrad, graduate, post-grad, and even vocational, or trade schools. Eligibility: Anyone who is a U.S. citizen or legal U.S. resident can make contributions, regardless of income. Suit payments to your budget: With access to approximately 30 plans, Wells Fargo Advisors makes saving for college easier with low minimum contribution options available to meet your college savings goals.

529 plan annual contribution limits per student 529 College plan 529 plan annual contribution limits per student $14,000 per year per student per contributor (max $28,000 per couple) OR as much as $70,000 ($140,000 per couple) in the first year of a 5-year period without exceeding the annual federal gift tax exclusion1

Educational Savings Account (ESA) Tax-deferred account with earnings and withdrawals free from federal income tax if used for qualified education expenses. Contribution limits apply. Maximum yearly contribution per student $2,000 a year per student until age 18 Qualified education expenses including tuition, room and board, fees, books, equipment, and supplies at an eligible elementary, high school, and post-secondary school, as well as computer equipment for elementary and high school (restrictions apply Restrictions : Income Single income less than $95,000 Joint income less than $190,000

Pros Cons Great for long term saving/investing Can transfer to future generations Cons Not FDIC Insured. So even though it is conservatively managed it is possible for your investment to lose value. If all your kids get scholarships and don’t use it by they’re 30 you have to pay taxes

Short – Term Solutions

Private Student Loans Many require payments while still in school. Can have variable interest rates. No one pays the interest on your loan but you. May require an established credit record or cosigner May not offer forbearance or deferment options

Short – Term Solutions Home Equity Line of Credit Secured Line Credit (no IRA or Annuities in portfolio)