College Planning

Preparing to send your child off to college is both an exciting and overwhelming time. Concerns about you’ll afford higher education should be your last worry when it’s time for them to choose their dream school. Starting to save for your child’s future can begin even before they are born. Our team is here to create a plan that ensures your child’s higher education costs have been saved for and are covered so when they are ready to embark on their college journey, tuition is the last of your worries.

Why is College Planning Important?

A college education opens doors to better career opportunities and higher earning potential.
How college education impacts future career opportunities: A college degree is often a prerequisite for many desirable professions and can provide a competitive edge in the job market.
Financial considerations and the value of early planning: College can be a significant financial investment, and early planning allows families to explore scholarships, financial aid options, and savings strategies.

Savings Plans

How you choose to save for your child’s college expenses will be one of the major factors that decides what schools they are able to attend. Two of the most popular savings plans are the 529 Savings Plan, and the Coverdell Education Account.

	COVERDELL EDUCATION ACCOUNT	529 SAVINGS PLAN
Income Eligibility for Contributor	Capped at $110k	None
Withdraws	Qualified expenses for K-12 and college	Qualified college expenses and up to $10,000 for K-12 tuition
Contribution Timeframe	Can be made up to age 18	No restrictions on age limit
Tax Status	Tax-Free growth and withdraws	Tax-Free growth and withdraws
Age Limit for Distributions	Must be beneficiary’s 30th birthday	No age limits
Contribution Limit	$2,000 per year per child	Determined by each State
Investment Limits	None	Limited and controlled by the financial institution
Penalties	10% for withdraws beyond qualified expenses	10% for withdraws beyond qualified expenses

Additional Funding

It is very likely that your child will qualify for scholarships, grants, or student loans to assist with school funding. Each offer different perks to combat tuition costs but it is important to carefully consider each option to ensure you are receiving the greatest benefit.

Direct plus Loan – This loan is for graduate students but tends to be less favorable as it only covers the cost of attendance and scholarships.

Direct Consolidation Loans – Combines your federal loans and is normally done after college. It contains no application fees.

Key Steps in College Planning

Assessing your child’s interests, strengths, and goals: Help your child identify their passions and align them with potential majors and career paths.
Understanding the college admissions process and requirements: Navigate the complex world of college applications, deadlines, and required documentation.
Researching and selecting the right colleges and majors: Explore different colleges based on academic offerings, campus culture, location, and career resources.

Financial planning and exploring scholarship opportunities: Develop a financial strategy, including savings plans, understanding tuition costs, and exploring scholarship and grant options.
Preparing for standardized tests and enhancing academic performance: Provide guidance on test preparation strategies and academic enrichment opportunities.
Building a strong extracurricular and leadership profile: Encourage involvement in extracurricular activities, community service, and leadership roles to bolster college applications

Services Offered by BWFA