Solutions for Tuition
Jay Murray has worked with over 600 families and speaks regularly to students, parents, grandparents, CPA’s, financial advisors, service organizations, business owners, employees and many others about the dramatic changes taking place in college funding today and how to implement effective strategies to save money, reduce stress, and properly integrate college funding into their lifestyles.
Jay and his team show clients how to qualify for financial aid awards and how to maximize their award. For those clients not qualifying for financial aid, Jay can show them how to capture powerful tax scholarships for their children and grandchildren. They have even helped wealthy families qualify for financial aid. Every family is different. That's why they offer a complimentary consultation - to discover how they can help their clients save money.
In addition to extensive education and experience Jay, and Kathy - his wife of 30 years - have had two children in college and one child in high school simultaneously - and understand firsthand the challenges facing today’s families. Jay’s passions include fly fishing, playing guitar and the Tennyson Center for Children.
Advisory Services offered through Solutions for Tuition, LLC - a Registered Investment Advisor with the State of Colorado.
A high quality permanent life insurance policy can be an effective way to save for college for younger children. The cash value will not be counted in the financial aid process at most colleges, while the value of a 529 plan could reduce an award the family would otherwise receive. If properly structured, the cash value can be borrowed to pay college costs. If the student does not go to college, the funds can continue to grow inside the policy or be used for any other purpose, e.g. buying a home. If you fund a 529 plan and the student does not go to college you may transfer the plan to another family member, or withdraw the funds and pay the 10% penatly and tax on the gains, if any. The new tax code now allows 529 plans to be used to pay private k-12 expenses, where previously this was not allowed.
It means they will send you the money, or deposit it into the account at the brokerage firm where you own the stock
I appears from your zip code, that you are a California resident. California does not offer a state tax deduction for a contribution to a California 529 Plan. If your son is no longer claimed on your federal tax return, you may not claim any of the federal credits. If your son is still claimed on your federal tax return, you may qualify for the Lifetime Learning Credit. Review IRS Publication 970 for details.
The first step is to file a FAFSA (Free Application for Federal Student Aid) at https://fafsa.ed.gov/ You must include your parents data, unless:
- You are 24 years of age or older
- You are married
- You have a dependent
- You are retired or active military
- You are homeless
- You have lost both parents
- You were in foster care since age 13
If you meet any of the above criteria, you are considered an independent student and may file the FAFSA using only your (and your spouse, if married) information. When you submit the form, you will receive a Student Aid Report (SAR). Inside the SAR will be your Expected Family Contribution (EFC). In simple terms, if your EFC is less than the cost of attendance, you are eligible for need-base aid. If your EFC is greater than the COA, then you are not eligible for need-based aid. You are always eligible for a student loan by filing the FAFSA, although limits for students are low. You may learn more at www.studentloans.gov
A financial aid award (including loans, which are considered self help) may be used to pay for qualified education expenses. This inlcudes rooom and board for a full time student, whether living on-campus in the dorm, or off campus. Typically, the lender will send the money to the college in your name. Any funds in excess of fees in the account (tuition and fees, e.g.) will be returned to the borrower. You may then use the funds to pay your rent, utilities, food, etc.