How to pay for college when you haven’t saved
Whether your child is still in high school, just starting college, or already enrolled, the back-to-school season is a reminder that higher education comes at a high price. While it’s advantageous to plan ahead and start saving early, for many families it’s just not possible.
So what should you do if you haven’t invested in a 529 plan or saved, and you need to pay for college? Are you completely out of luck?
Paying for college at the last minute
Not necessarily. Luckily, there are still benefits to saving, even this late in the game. This article from Main Street explains why a 529 plan is still a good option for college-bound families and parents of college students.
A 529 plan can carry huge tax benefits. For one, a majority of states offer some type of income tax deduction. And in high-tax states like New York, the tax savings on contributions are even greater.
It’s not too late to set up a 529 plan
And remember, even if your 529 plan investment doesn’t grow much in the short time before you need to pay for your child’s college, or you find some other way to pay for school, such as a scholarship, there are other options for using your 529 funds.
For example, you can always switch the account to benefit a younger child or grandchild, leaving more time for the account to grow.
Making college affordable when you haven’t saved
Just because you haven’t saved up to this point, don’t think you’re out of options for paying for college.
If you need help exploring ways to afford college while your student is in school, don’t hesitate to contact us or call Rick & Andy for a free consultation at 1-888-234-3907.