With so many different ways to save for college,
you may not be sure which path to take. Here are some factors
you may want to weigh.
Financial aid
The more
assets
children have in their own
names or as beneficiaries of a college savings account, the less
financial aid they may qualify for. Students are typically expected
to use about 35% of their savings to pay college bills, while
parents are expected to use about 6% of theirs — though there
may be some flexibility in both cases. That’s one reason
some parents prefer to keep investment assets in their own names,
in accounts they designate for education.
On the other hand, if your investment strategy
works and you accumulate enough to pay for college, you don’t
have to worry about whether your children will be offered adequate
financial aid. Financial aid is never guaranteed, though most
students will qualify for loans.
