There are several different types of 529 savings plans available and parents should look into and understand the workings and the benefits of the various plans so as to choose one that best suits the requirements of their children.

"529" is essentially a United States' Internal Revenue Code section, more commonly known as qualified tuition plans. By investing in their children's college fees as early as possible parents get can avail of a tax advantage and can also avoid paying higher fees when it's actually time for their children to go to college. These plans are typically funded by educational institutions and various state agencies.

One of the most significant benefits of a 529 savings plan is that parents do have to pay any inflation difference. There are two main plans available, which cater to two different types of situations.

Investing in pre-paid tuition plans would involve purchasing credits or units at participating universities or colleges, which could then be used for books and admission fees or even a room on the campus.

The college savings plan includes a variety of investments that could be made that would be of great assistance to the beneficiary student at some time in the future.

However munificent the savings may be, you should keep in mind that the 529 savings plans are still investments and would entail a certain amount of risk. There's not much cause for worry though as these investments are relatively conservative.

A 529 savings plan is quite different from any typical mutual investment in many ways. For one thing, multiple members can contribute to the plan and for another you are not required to pay taxes on any of the account's earnings. Also, the account can be rolled over to any other member if, for any reason, the original beneficiary does not go to university or college.

In case the beneficiary earns a scholarship, the unused money can be withdrawn from the account anytime prior to maturity without incurring any penalties except for the applicable taxes. The savings plan allows you, as a parent, to ensure that your child's college education is secure financially.

Keep in mind that the parent is the sole controller of the account and the student has no access to the money that has been invested in the 529 savings plan until such time that he or she goes to college or university.

If you have the money, then investing early in a 529 savings plan is an excellent method of ensuring you are able to fund your child's college education. This will help insure your child's education against any possible financial difficulties that you might face in the future.


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If paying for college out of your own pocket is out of the question, yet you cannot qualify for many grants, you need to start looking for scholarships. If you are not the "academic" type, don't worry. Most students can find scholarships if they look hard enough. While many are academic in nature, you can also get scholarships for athletic ability, racial heritage, and even community service. The best thing about scholarships is that you do not have to pay them back, so start looking for the perfect scholarship today.

If you excel in athletics, you might be offered a scholarship in return for playing for a school's team. Keep in mind that college sports include sports like gymnastics and swimming, not just the sports that make national headlines. You may need to be flexible about your school choice if you wish to pursue an athletic scholarship.

Are you a minority or a female student? You will find that there are many scholarships you could receive because you are in an "underprivileged" group. Even if you are not actually underprivileged, your race or gender could be all that you need to qualify for the scholarship.

Who offers scholarships? One common source of scholarship money is the school you are attending. Academic and athletic scholarships are commonly offered by schools. They also sometimes offer scholarships to children of alumni, and they may have need-based scholarship programs for students who have great financial need. Some schools that need to balance their student ratios to include more minorities will offer minority scholarships, but schools are not the only places to look for scholarships.

Charitable organizations often offer scholarships to students who do a lot of community service. Also, they may offer scholarships to members or the children of members. Make yourself known in your community so you can learn about these opportunities.

Professional organizations also support further education by offering scholarships to students who are pursuing a line of study relating to the organization. For instance, the farm bureau may offer a scholarship to students who are looking to study agriculture. Corporations also offer scholarships in an attempt to make their public images better. Again, these often focus on a particular industry or a particular minority group.

Since there are so many scholarship opportunities out there, using a free online search is the best way to narrow down your possibilities. Be sure to contact the financial aid office at your school as well to learn about any opportunities you might have missed.



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