AMSGPSL - 2 - Make - Education - Affordable Options
- jimm1
Key Points
- financial aid is key - understand what is counted on income and affordability calculations
- merit-based aid is great but very challenging
- specific aid or grants are available based on identity criteria sometimes but finding them but not be easy
- for many public colleges, state residency can make a big difference on tuition costs
- 529 plans can be helpful but vary by state on costs, returns
References
| Reference_description_with_linked_URLs_______________________ | Notes______________________________________________________________ |
|---|---|
| AMSGPSL - 1 - LIFE - Plan Your Life | |
| i Invest Strategies | |
| Invest Tools | |
Key Concepts
Potential Value Opportunities
Skills Training & Certifications - needed for jobs - differ in value, cost - many free resources
skills by industry sector usually
a few can be very expensive, require professional experiience - CPA, PMP etc
many courses provide certificates of completion
many courses are online and offer video recordings and other resources
Kahn academy
free code camp
coursera - auditing free
mit ocw - free
online publishere - tradepub
Trade schools - degrees for specific trades - cost varies - may need experience
College - associates, courses, bachelor degrees
Community Colleges and State Colleges are usually more affordable than private colleges IF you are a state resident.
The public colleges ( like private colleges ) offer a variety of financial grants and scholarships ( beyond loans ).
Sometimes the grants and scholarships are identity based with restrictions
Also colleges may offer part time student employment options to help
There are a variety of loan programs ( as a last resort ) to help pay
Generally Federal loan programs have lower rates, easier repayment
Unfortunately, the wrong President will sometimes cancel student loan repayments again based on identity politics
529 plans to pay for any education without taxes in or out
States authorize 529 education savings plans for ANY legitimate education expense ( NOT just college )
shop 529 plans > you can sign up for a 529 plan in any state normally even if you are not a resident
The win on 529 plans?
They may offer good investment returns with lower risk than many mutual funds
You can transfer a 529 plan to.a different beneficiary if needed ( You can find the beneficiary change form on the 529 plan's website)
The restrictions on 529 plans?
They can only be used for clear education expenses ( not transportation or other costs )
Tax advantages can be good for contriubtors and beneficiaries
Contributions to 529 plans are deductible from your Federal income ( AGI )
Withdrawals from 529 plans by beneficiaries for education expaneses are also tax fee including the gains
Penalties if NOT used for education expenses
You can withdraw funds for any reason ( other than education expenses ) and pay a penalty and taxes on the gains in the plans
intro-to-529s > what-is-the-penalty-on-an-unused-529-plan?
you’ll face a 529 tax penalty and a withdrawal penalty if you use a 529 plan distribution on non-qualified expenses. You’ll have to pay income tax on the ENTIRE withdrawal AND a 529 withdrawal penalty of 10% on the earnings portion.
Qualified 529 plan expenses include:
- Tuition and fees
- Books
- Computers, software, related equipment, and internet access
- Special needs equipment
- Cost of attendance, which includes room and board if the student is enrolled at least half-time
- Up to $10,000 in K-12 tuition expenses (per year, per beneficiary)
- Up to $10,000 in student loan payments (lifetime limit)
- Costs of apprenticeship programs
You may also use 529 plan funds towards the beneficiary’s Lifetime Learning Credit
Husson University - Bangor ME
| Household income | Average cost after aid |
|---|---|
| Less than $30,000 | $14,957 |
| $30,001–48,000 | $15,883 |
| $48,001–75,000 | $17,625 |
| $75,001–110,000 | $21,819 |
| More than $110,001 | $26,029 |
Daytona State College - Daytona Beach & Palm Coast FL
- Average cost after aid$8,867Aid includes grants and scholarships from the institution, state, and federal governmentAverage cost before aid$15,630$3,106Tuition$12,524Other costs (books and off-campus room & board)
- Average cost before aid$24,518$11,994Tuition$12,524Other costs (books and off-campus room & board)
| Household income | Average cost after aid |
|---|---|
| Less than $30,000 | $7,897 |
| $30,001–48,000 | $7,722 |
| $48,001–75,000 | $11,176 |
| $75,001–110,000 | $12,542 |
| More than $110,001 | $12,982 |
UMASS Dartmouth
- Average cost after aid$20,910Aid includes grants and scholarships from the institution, state, and federal governmentAverage cost before aid$33,155$14,408Tuition$18,747Other costs (books and on-campus room & board)
| Household income | Average cost after aid |
|---|---|
| Less than $30,000 | $16,996 |
| $30,001–48,000 | $19,414 |
| $48,001–75,000 | $21,238 |
| $75,001–110,000 | $23,516 |
| More than $110,001 | $24,690 |
Potential Challenges
Candidate Solutions
Step-by-step guide for Example
sample code block