Posts Tagged ‘college’

Financial Aid Changes on the Horizon

The U.S. Department of Education has designated February as Financial Aid Awareness Month, and this year there’s a lot to talk about. On December 21, 2020, Congress passed the Consolidated Appropriations Act, 2021, another relief package in response to the pandemic. Included in the bill were several provisions related to education, including many changes to…

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Income Tax Planning and 529 Plans

The income tax benefits offered by 529 plans make these plans attractive to parents (and others) who are saving for college or K-12 tuition. Qualified withdrawals from a 529 plan are tax free at the federal level, and some states also offer tax breaks to their residents. It’s important to evaluate the federal and state…

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New College Cost Data for 2020-2021 School Year

Every year, the College Board releases updated college cost data and trends in its annual report. Although costs can vary significantly depending on region of the country and college, the College Board publishes average cost figures, which are based on a survey of approximately 4,000 colleges across the country. Following are cost highlights for the…

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The FAFSA and Your Income.

Your income from two years prior is what counts on the FAFSA. For example, the 2021-2022 FAFSA will rely on income information in your 2019 tax return. FAFSA for 2021-2022 Academic Year Opens on October 1.   The FAFSA (Free Application for Federal Student Aid) for the 2021-2022 year opens on October 1, 2020. The…

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Federal Student Loan Borrowers Get Some Relief Due to COVID-19

On March 20, 2020, the Department of Education announced terms for student loan relief for tens of millions of borrowers in response to COVID-19.1 Here are answers to some questions about the new rules. For more information and to follow subsequent potential rule modifications, visit the federal student aid website. Does the relief apply to all student loan…

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Finding Money to Pay College Bills Out of Pocket

You’ve saved for your child’s college education through the years, helped your child research schools, and supervised the application process. Now, thankfully, your child is in college. But you probably can’t disappear just yet — there are still bills to pay. Maybe you underestimated exactly how much financial aid would cover. Or perhaps you knew…

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Tax Cuts and Jobs Act: 529 Plans Expanded

In December 2017, the Tax Cuts and Jobs Act, a sweeping $1.5 trillion tax-cut package, became law. College students and their parents dodged a major bullet with the legislation, as initial drafts of the bill included the elimination of Coverdell Education Savings Accounts, the Lifetime Learning Credit, and the student loan interest deduction. Also on…

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