[accordions] FAQs
[accordion title=”529 plans: Tax issues”]
Can I deduct my contributions to my 529 account?
Can I use 529 funds to pay my child’s college expenses in the same year I take either the Hope credit or the Lifetime Learning credit?
How does the annual gift tax exclusion apply to contributions to a 529 plan?
I intend to make tuition payments directly to my grandchild’s college, and I know this will reduce my estate. But would it be better to contribute to a 529 plan instead?
I know that qualified withdrawals from state savings plans are now exempt from federal income tax. But what about state taxes?
I opened a 529 plan and my child is the beneficiary. If my mother makes a contribution to the plan, is that considered a gift to me or to my child?
I opened a state savings plan sponsored by a different state than my own. Will I get that state’s tax benefits?
I’d like to make a lump-sum contribution to my grandchild’s 529 account. Will I owe gift tax?
If I cash in Series EE U.S. savings bonds I purchased 10 years ago and contribute the proceeds to a 529 plan, can I still avoid paying tax on the proceeds?
The Economic Growth and Tax Relief Reconciliation Act of 2001 contains sunset provisions. Should I be worried about this?
Will I be penalized if the money in my 529 plan isn’t used for college expenses?
Will I pay income tax when the money in my 529 plan is withdrawn to pay for college expenses?
Will the value of my 529 account be included in my estate or my beneficiary’s estate?
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[accordion title=”Applying to college”]
How many colleges should my child apply to?
When are college applications due?
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[accordion title=”Borrowing against your 529 account”]
Can I use the money in my 529 account as security if I apply for a loan?
I know I can borrow against my 401(k), but can I borrow against the value of my 529 account?

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[accordion title=”Choosing a 529 plan”]
Can I invest in any state’s 529 plan, or am I limited to my own state’s plan?
How do I know whether to choose a state savings plan or a prepaid tuition plan?
I’ve decided on a state savings plan, but how do I go about choosing one?
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[accordion title=”College costs”]
Are there any ways to lower the cost of college?
What expenses are included in the annual cost of college?
What is the college inflation rate?
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[accordion title=”College students and insurance”]
My child is heading off to college this fall. What insurance issues does this raise?
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[accordion title=”Education tax credits”]
Now that my child is in college, am I entitled to any education tax credits?
What are the Hope credit and the Lifetime Learning credit?
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[accordion title=”Financial aid”]
Are any financial aid programs tailored especially to parents of post-secondary students?
Are there any assets that are not counted for financial aid purposes?
Can an UGMA/UTMA account reduce my child’s financial aid for college?
Can anyone get a Pell Grant?
Can we negotiate our child’s financial aid award?
Do colleges offer financial aid?
How can my child find scholarships for college?
How do I apply for financial aid?
How do I know if I’m eligible for federal financial aid?
How does the federal financial aid process work?
Is there anything I can do now so that my child can obtain more financial aid later?
What are the major federal financial aid loan programs?
What happens if our child’s college does not give us all the financial aid we need?
What is a Stafford Loan?

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