Piggy bank wearing glasses in a classroom

I'm sending my child to college

With the continually rising costs associated with a college education, it’s not unusual for parents to find they don’t have enough money saved to pay for it all. The good news is there are still options available to help make the expense of a college education more affordable.

 

 

Save as much as you can – Although you may only have a short time to put money away, it’s still important to do what you can. There are smart tools available like the Coverdell Education Savings Account (CESA) that allows you to save and avoid taxes when you withdraw the money to pay for education expenses.

Get tax credits – The Hope Credit and the Lifetime Learning Credit are both education tax credits. These credits can reduce the amount of tax you have to pay, giving you more money to spend on education expenses.

Find grants, scholarships, and loans – There are many programs based on financial need, although some organizations offer scholarships based on other requirements. Additionally, there are loans that have favorable terms, such as allowing you to delay repayment until after graduation.

Use the equity you’ve built in your home – You also have the possibility of getting a home equity loan or line of credit to help pay for college expenses. In addition to potentially more favorable rates, the interest you pay may be tax deductible. Please consult your tax advisor.

 

Infographic-4 tips to funding college tuition

The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its affiliates and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.