American students collectively carry more than $1.5 trillion in student loan debt while college expenses continue to rise rapidly every year. Many parents suffer the fate of witnessing their children graduate amid crippling debt. What steps can be taken to prevent this?
A simple savings account or other options such as life insurance may soften the blow a bit, but there are hardships involved with these accounts such as taxes and slow rate of growth. But alas, there is a little-known option that can help you save for your child’s tuition.
A 529 plan is an education funding account you can set up for yourself, your child or even your niece and nephew. It grows tax-free over time and can be used to pay for tuition, books, a computer, or even housing during the time of education. A 529 plan does not largely affect you or your child’s ability to obtain financial aid. 5.64% of the asset’s value will be considered income on the application. Compared to other options, this isn’t very impactful and the benefits to this plan easily outweigh the minute costs.
The experts at U-Nest are proficient in the ins and outs of the 529 plan and will help you navigate your tuition savings plan. U-Nest will provide you a financial expert who will be dedicated to helping you and your child save the most amount of money possible.
It’s imperative that you plan now in order to avoid the student debt crisis. One of the best ways for you to ensure this is to set up a 529 plan with experts dedicated to helping you manage it. Putting as little as $100 a month towards your account could earn you or your child $15,500 more than a traditional savings account could. The fact that these savings are not taxed is a cherry on top. Visit U-Nest.com to get started on your savings plan today!