Category - College

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Education Loans Jeopardized by Auction-Rate Securities Market Meltdown
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Extreme College Planning
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What You Didn’t Know About 529 Plans

Education Loans Jeopardized by Auction-Rate Securities Market Meltdown

Education Loans Jeopoardized by Auction Rate SecuritiesThe Massachusetts Educational Financing Authority (MEFA) announced late last month that it’s unable to raise funds needed to provide fixed-rate private education loans, as it has in the past. Families counting on MEFA loans will be scrambling to find other funds in the next few weeks unless a plan proposed by Governor Deval Patrick succeeds. At the end of the post I offer some last-minute ideas for families who will be facing a funding crunch if MEFA loans do not come through this fall.

MEFA provided loans to 40,000 Bay State residents last year, but its revenue-raising ability has …

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Extreme College Planning

Most parents aren’t looking forward to the cost of sending their kids through college. For those of you who really want to get a head start, here’s a scheme that will help maximize your college savings, albeit via rather quirky means.

Some time ago, a friend approached me with a question that no one had ever asked me before:  Is there a way to establish a tax-favored college savings plan for a child who hasn’t been born yet?  As it happened, he and his wife were planning to have a child within a year or so.  They had some cash …

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What You Didn’t Know About 529 Plans

Saving for CollegeRecently someone said to me that the only reason she invested in a 529 savings plan for her child was that everyone she knew had done the same thing. Often people have at best a vague understanding of how these plans work, why they are a desirable way to save for college, or how to select a plan that suits their needs.

I’ve found that most people don’t understand that there are actually two types of 529 plan.  There are “prepaid” 529 plans and 529 “savings” plans; they differ significantly in some respects.  In both types, state tax deductions may …

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