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【B1】 [br] 【B8】 [originaltext] A college education is an investment in the futu
【B1】 [br] 【B8】 [originaltext] A college education is an investment in the futu
游客
2024-03-04
26
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【B1】 [br] 【B8】
A college education is an investment in the future. But it can be a costly investment. The College Board estimates that the costs at a four-year public college in the United States increased 10 percent this past school year. That was less than the 13 percent increase the year before, but still much higher than the inflation rate. Public colleges and universities still cost a lot less than private ones.
Financial aid often helps. But financial advisers tell parents to start college savings plans when their child is still very young.
All 50 states and the District of Columbia offer what are called 5-20-9 plans. These plans are named after the part of the federal tax law that created them in 1996. States use private investment companies to operate most programs.
Every state has its own roles governing 5-20-9 plans. Some of the plans are free of state taxes. And ail are free of federal taxes. However, the government could start to tax withdrawals in 2011 if Congress does not change the law.
5-20-9 plans include investment accounts that increase or decrease in value with the investments they contain. Families must decide how aggressively they want to put money into stocks, bonds or other investments.
Another kind of 5-20-9 plan lets parents begin to pay for their child’s education long before their child starts college. This kind of savings program is called a prepaid tuition plan.
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