The Educational Savings Account is a high-yield savings account to help save for higher education costs. It must be open for a minimum of three years and pays out on your child’s college entrance date or 18th birthday, whichever comes first. With a minimum opening deposit of only $5, it’s a great way to save!
Any withdrawal from the Educational Savings Account prior to set requirements will close the account and result in a penalty (some exceptions may apply). The dividend on the Educational Savings Account adjusts annually on January 1 based on the 36-121 month certificate rate in effect on December 31.
You've heard the figures - college education is expensive. All those benefits of personal growth, expanded horizons, and increased lifetime earning power come at a price that increases every year.
As the cost of a college education continues to climb, many grandparents are stepping in to help. This trend is expected to accelerate as baby boomers, many of whom went to college, become grandparents and start gifting what has predicted to be trillions of dollars over the coming decades. Grandparents can open an Educational Savings Account for grandchildren at birth and make regular deposits to assist in higher education costs.
It's hard to talk about college without mentioning financial aid. In many cases, financial aid may be the deciding factor in whether or not a child attends the college of his or her choice, or even attends college at all. That is why it is important to develop a basic understanding of financial aid before a child applies to college. Without such knowledge, you may have trouble understanding the process of aid determination, filling out the proper aid applications, and comparing the financial aid awards a child receives.
Paying for college doesn't have to be scary or intimidating. But it does require some research and planning. Here's some information to help you save for college, apply for student loans, apply for grants, apply for scholarships and repay student loans.
College 529 Savings Plan - Learn the advantages and disadvantages of using 529 plans vs. pre-paid tuition plans to save for your child's college education.
FAFSA - Applying for Student Aid - The first step in applying for student financial aid is to complete the Free Application for Federal Student Aid (FAFSA).
Grants for Students - Student educational grants do not have to be repaid, and may be based on financial need, merit or a variety of other factors.
Scholarships - Ideas for researching scholarships offered by colleges, the military and private organizations.
Student Loan Repayment Programs - If you are having trouble making your monthly student loan payment, learn more about your student loan repayment options.
Student Loans - Basic explanation of the main types of student loans available, including Stafford loans, Perkins loans, parent loans and private loans.