Alternative Funding to Help Pay for College

Are you currently wondering how you are going to pay for college, or you want to pay for your child’s college, but you don’t know how? Don’t be discouraged, there are many different ways to help you achieve this goal. Here is some alternate funding to help pay for college.

529 Plan

A 529 plan is a tax-advantaged savings plan that was set up to help save for future college costs. 529 plans are sponsored by states, state agencies, or educational institutions. They are authorized by Section 529 of the Internal Revenue Code. These plans are either categorized as prepaid or savings accounts. Each state decides what sort of plan it will offer, if any at all.

There are some great benefits to a 529 plan if that’s what you are thinking you want to use to help fund your college or your child’s college. A 529 gives you great tax breaks, anyone can use one, and they are very convenient.

Basically, a 529 Savings Plan is a fantastic way to save money for college without having to think too much about it. Money is allocated to the savings plan as often as you’d like and the savings will just continue to grow as it accumulates interest. This is definitely an investment into your or your child’s future.

Mutual funds

Mutual funds make it simple to invest for college. Investing in mutual funds puts a professional in charge of your savings so that you don’t have to worry about it. There are special, lower tax rates for certain gains and long-term capital gains on your mutual fund. There are no restrictions on time, age or income or on how much may be invested or what expenses may be paid.

Loans

You don’t need to be stressing about paying for all of your college in one lump some. Federal, state, and private grants and loans can help you with your savings and tuition bills, even if you think you make too much to qualify. You can borrow money in the form of student loans that you repay with interest, over time, after you finish your degree or leave school. School loans are available to almost any student.

Scholarships

There are many different kinds of scholarships. There are scholarships that are from government agencies, colleges, various companies, organizations and private sources. Each have different eligibility requirements that have to be met in order to qualify for them. Depending on what college you are interested in will depend on what scholarships are available. Be careful of scholarship scams. Unfortunately there are people out there that are ready to steal your money at the drop of a hat. Search for notable scholarships at the Fast Web or at Federal Student Aid web sites.

Pell Grants

A federal Pell Grant doesn’t have to be paid back unless you withdraw from school. Pell Grants are awarded to undergraduate students who have not earned their bachelor or professional degree. The amount you may be awarded depends on your financial need, school costs, attending school full-time or part-time, and if you attend for the full school year or less.

These are just some of the alternate funding to help pay for college. Don’t discourage yourself from going to college just because you feel like you can’t afford it. There are many alternate ways that will help you pay for your education or for you child’s education. Research what kind of financial help you are interested in so you can start living worry free knowing that there will be college education in your future.