Financial Fitness by Jainie Fitness

According to College Board nearly half of fulltime students attend college with prices around $9,000 a year, the other half attend schools at around $35,000 a year. This may seem intimidating but whether saving for your education or your child’s, these are steps you can take towards keeping financially fit and avoiding the damper of student loans:

• Grants:  You never have to pay a grant back, and just for the Pell Grant alone (one of the most popular grants) the max payout for 2010-2011 school year was $5,550. For more information about applying for Financial Aid click here.
• 529 Plan: Nothing beats the old fashioned method of stashing away some extra cash. 529 Plans are not ordinary savings accounts so it’s important to check with a financial advisor to make sure it’s right for you and your family.
• Coverdell Education savings Accounts: A common concern with a 529 plan is that it’s exposed to market risk and can actually decrease in value. Coverdell’s are similar to IRAs and not at risk for market fluctuation. A few things to keep in mind, the max contribution per year is $2,000 and Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed.

Paying for college can be a scary thing, but the longest marathon begins with a single step! How did you make the grade? Share your tips and tricks in comments or through the forum.
The mint makes it first, it’s up to you to make it last.

-Jainie-