Strategies To Cut College Costs- Assets

The following is a reference guide of education cost-cutting strategies for families of all income levels. These strategies were created by some of the top minds in educational funding and can provide families with financial opportunities to help fund tuition costs. They include:

• Asset Strategies
• Income Strategies
• Award Letter Strategies
• Appeal Strategies
• Education Tax Incentive Strategies
• Academic and Admission Strategies
• Other Strategies

Use the links above or at the bottom of the article.

Asset Strategies

• Funding a life insurance policy allows maximum advantages for tax-deterred growth, tax withdrawals for college and retirement.
• A Roth IRA is tax/withdrawal penalty-free, a smart strategy to use for college costs.
• The student can apply for an unsubsidized Stafford loan and deduct the loan interest expense. If a family, due to income limitations, cannot deduct student loan interest expense, an unsubsidized loan is preferable to a family’s PLUS loan.
• An equity line on the family residence can be used for college funds. Interest paid is an itemized deduction, but don’t go into debt without a repayment plan.
• Students of divorced/separated parents need to decide where to live during college. Aid eligibility is computed by the income/assets of the custodial parent. Private colleges may compute assets of non-custodial parents.

*Please be advised that most families will need to consult their CPA or financial advisor to implement these strategies!