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.
There are many factors to consider. Are your student loans federal loans? If so, you may have some valuabe features associated with your loans, such as Income Based Repayment and loan forgiveness programs such as Teach for America. Since you are both teachers, it is likely you have investigated this last option. If not, visit https://www.teachforamerica.org/ . Lastly, what is the interest rate you are paying on your loans? Does the fact that you have loans keep you up at night? Next, we must look at your investment options, which begins with an understanding of your risk tolerance and an overall understanding of investment options.
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.
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.