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Use 529 Savings for Pre-College Schooling, Student Loans, and…

Jan 08, 2020

In the 1990s, Congress passed legislation to create 529 college savings programs to help families create a nest egg for college. With terrific tax benefits and lots of flexibility to move money among beneficiaries, more than 13 million current account holders have saved more than $325 billion.  





When you buy expensive things -- a TV, a car, a house --, you most likely take more and more time to carefully consider the risks, rewards, and probable outcomes associated with the purchase as the price increases. No one wants to waste hard-earned money. In addition to knowing the purchase price, you will likely have a good handle on the ultimate cost, including after-purchase expenses such as maintenance and insurance. This is true for nearly all consumer transactions -- except for purchasing an education.




That sounds odd, doesn’t it, “to win the financial aid game.”  You don’t have to stretch very far to see that the financial aid process has characteristics of a game: there is a rulebook, a referee (the U.S. Department of Education), a defined time period and rewards at the end for the winners.  Unfortunately, as we’ve recently learned, there are cheaters too.