Financial Aid Helps Pay for College, Money Remittance Makes Up the Difference
For many it’s the American Dream: beautiful home, white picket fence, well-behaved children, beautiful and caring spouse, safe community, an outstanding education and the ideal job. This picture of perfection is the vision for some hardworking Americans, but there remains a sobering reality that can’t be ignored. Making enough money to purchase a home, a vehicle, and eventually to retire often requires job seekers to possess a college degree.
Higher education does not determine the future of an individual, but can greatly influence their ability to succeed. Unfortunately, tuition prices have skyrocketed and show no sign of slowing down. Recent graduates are getting thousands of dollars in debt, just so they can get ahead in the workforce. If you have ever asked yourself “how can I send money to loved ones who need financial aid,” consider the following.
College Savings Accounts
It’s possible to save money for college through tax-advantaged plans such as 529 college Saving Plans and Coverdell Education Savings Accounts. Contribute to these accounts consistently over months and years. When the school year begins, a money transfer to the person attending college is a practical and easy way to offer them some personal financial aid.
Tax Breaks for Educational Costs
Higher education tax breaks are available. With these tax breaks, taxpayers can deduct certain college-related expenses from the taxes they owe. Use these tax breaks for your benefit if you decide to fund or take financial responsibility for a loved one’s education. Make sure you also clearly understand the rules for this tax break, since the government only allows one deduction per year.
Look for Merit Based Financial Aid
As you seek to support your loved one’s educational endeavors, it’s nice to get help in whatever ways you can. Some colleges offer merit aid as an incentive to join. This is where they provide additional financial support because of grades, academic performance, talents and other factors. Encourage the person attending college to look into different institutions that offer this setup to lower the price.
For some, college is the biggest expense they will incur during their lifetime. Supplying financial aid will allow you to play an integral role in their future.