Learn Strategies for Salvaging Your Child’s 529 Plan
For most families, the cost of a college education is always a challenge. The introduction of the 529 Plan was supposed to make it a little easier for parents to plan and save for this goal, but the recent market downturn has exacted a toll. Parents of high school juniors and seniors who were relying on their 529 plans to cover tuition expenses are facing an unanticipated gap in resources. Rather than postponing college, it may be prudent to explore other alternative funding strategies.
Leverage Your Position While Rebuilding Your Base
It may seem counterintuitive, but student loans may be the answer. While most parents invested in 529 plans to avoid taking on debt to pay for college, this approach has merit. In many cases, student loans are available with deferred payment schedules. The repayment term typically begins six months following the student’s college graduation date. This can be extended if the student goes on to graduate school. By borrowing the money needed to pay for college now, parents can keep the funds in their 529 plans longer and give themselves an opportunity to rebuild the balance.
Educate Yourself — Talk With a Financial Planner About Your Options
A college education is clearly one of the best investments anyone can make. It is truly something that neither market crisis nor prosperity can alter or take away. Beyond student loans, there may be a number of smart solutions you can consider to help fund your child’s college education.
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