A Parent’s College Savings List – Part 3 Beneficiaries, Distributions & Qualified Expenses
Compare Loans
Select up to 5 types of loan and click the button
Receiving a college education may be the single most important accomplishment that one may achieve in their entire life time.
Do you need to apply for a student loan to pursue your college degree?
Do you need to apply for a student loan to pursue your college degree?
Simple Online Application
It’s vital to research college savings options carefully, just as you would research any investment opportunity. The following are a few of the many investment questions you should ask about each college savings option presented here:
Beneficiaries
What happens if the child dies or becomes disabled?
Can you change the beneficiary? Are there any restrictions on who can become the new beneficiary?
Distributions and Qualified Expenses
- What happens if the child decides to not go to college?
- What happens if the child receives a scholarship from the school?
- Is access to the savings controlled by the account owner or the student? Are there any restrictions on how the money can be spent?
- Which schools participate in the plan? Do I have to name a particular school or set of schools when opening an account?
- What happens if the child goes to an out of state school? If the program is limited to public colleges, what happens if the child attends a private college?
- What expenses does the plan cover? Does it include just tuition and fees or does it also include room and board? Can you use the plan for non-included expenses, and if so, what are the penalties?
- Can the investment in the plan be cancelled? If so, how is the amount of the refund calculated?
- How do you redeem the plan or withdraw funds when your child matriculates in college?
Up Next : Part 4 Tax & Financial Aid Implications, Misc. Items