An education is one of the most valuable investments you can make in your, your children’s or your grand children’s future. Savvy saving and borrowing can help you finance your family’s education goals.
Education IRAs
These can be an excellent way to save for an education especially if you start early.
- Penalty-free withdrawals. For higher-education expenses for yourself, your spouse, a child or grandchild.
- Qualified expenses. These include tuition, fees, and room and board for post secondary education – including graduate school.
- Strong savings. The tax advantages of IRAs make them an excellent place to begin saving for an education.
State tuition savings programs Many states have tax-advantaged college savings programs. They offer:
- Nationwide participation. Many programs allow participation no matter where you live.
- Flexibility. You can open an account for a child, grandchild or other young person.
- No limits. No maximum annual contribution.
Home equity loans
The equity in your home can help finance the high costs of an education.
- Tax savings. Interest can be tax deductible.
- Education choice. Money can be used for either college or technical school.
Student loans
Student loans often offer good interest rates, and the interest is tax deductible for the first part of the loan (see www.irs.gov for details). There are a variety of student loans tailored for both traditional and non-traditional borrowers:
- Stafford Loans. Subsidized and unsubsidized federal loans.
- Private loans. Help meet the cost of education when federal loans aren’t enough.
- Complete education loans. From kindergarten through adulthood, these loans help finance lifelong learning goals.
Repayment options
Eventually, you’ll have to repay your student loans. Thankfully, there are a number of plans available:
- Standard. Principal and interest payments are divided into equal monthly installments throughout the repayment period.
- Consolidated. Combine all eligible federal loans into a single new loan.
- Graduated. Smaller payments at the beginning of the repayment term gradually increase over time.
Remember, it’s never too late to finance your education. Talk to your financial representative or visit the Student Financial Services to learn how Wells Fargo can help make your educational goals a reality.