Education Planning

How to Access Student Loan Information

Managing student loans can feel overwhelming, especially when trying to track your progress toward forgiveness programs like Public Service Loan Forgiveness (PSLF) or Income-Driven Repayment (IDR) forgiveness. This guide provides basic instructions and detailed steps to understand your loans, determine your status toward forgiveness, and maximize your repayment options. Identify Your Loan Types Log in to studentaid.gov using your FSA ID and password.Navigate to the “View My Aid” section to see:Loan types (e.g., Direct Subsidized, Direct Unsubsidized, PLUS, Perkins, FFEL).Loan balances and interest rates.Servicer information.Select "Download My Aid Data" on the My Aid page. Guide: How can I download my aid…
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How to Use Funds in a 529 for Education

You've been diligently saving to a 529 for years and now the big day has arrived. Your child is ready to use that 529 money for college! Or.. some other qualified education expense. How do you actually do that?There are several methods that you can implement to use 529 funds. Each method of accessing the funds offers unique advantages and challenges, making it essential to align your approach with IRS guidelines. This article explores various ways to use 529 funds, provides best practices, and offers tips for staying compliant.See 10 Ways a 529 Can Be Used – Gilbert Wealth for a summary…
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Using a 529 for Off-Campus Living Expenses

Using 529 plans for off-campus living expenses can be tricky. While 529 funds can be used for room and board, there are strict guidelines to ensure compliance with IRS rules. Misuse of funds, even unintentionally, may result in income tax and penalties on non-qualified withdrawals. This article explores key considerations when using 529 funds for off-campus living and other common but questionable expenses.Room and Board for Off-Campus LivingIf the student lives off-campus, room and board are considered qualified expenses up to the school’s official cost of attendance (COA) for housing and meals. The COA acts as the upper limit on…
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Understanding the Taxation of 529 Plans for Non-Qualified Expenses or Closure

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. Named after Section 529 of the Internal Revenue Code, these plans are sponsored by states, state agencies, or educational institutions and offer tax benefits when used for qualified education expenses.But what happens if you have to withdraw money for reasons other than qualified education expenses? Or what happens if you no longer want or need the 529 plan and want to close it?Using 529 funds for non-qualified expenses can result in tax consequences. This article will delve into the taxation aspects, including the 10%…
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10 Ways a 529 Can Be Used

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. These plans are sponsored by states, state agencies, or educational institutions and offer flexibility and a range of benefits to families aiming to secure their children's educational future. This guide explores not only the domestic uses of a 529 plan but also its applicability to international educational pursuits.1. Tuition and FeesThe primary use of a 529 plan is to cover tuition and fees at eligible educational institutions. This includes:Colleges and Universities: Both in-state and out-of-state, public and private institutions.Community College: Community college schools are eligible.Graduate…
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