Paying for College

To pay for tuition and living costs at college, it is beneficial to save before attending. While FAFSA and scholarships do make most colleges free for families earning less than $60,000 per year, everyone else can expect to pay tens if not hundreds of thousands of dollars. Two notable savings plans exist. 529 Education Savings Plans and Coverdell Education Saving Accounts. Another way to make college cheaper is to enlist in the military. If you are interested you can look into ROTC programs.

In Wisconsin, you can find more information and open an educational savings account at

529 College Savings Plan
In these tax-advantaged accounts (which are usually sponsored by states), contributions grow tax-free, and withdrawals for eligible college expenses (such as tuition, room and board, and books) are tax-free. Depending on the state, some plans also offer state tax deductions, matching grants or other benefits.

Coverdell ESAs
Funds in these accounts grow tax-free and are tax-free when withdrawn for K-12 or college education expenses before age 30. Coverdell ESAs also offer increased flexibility. Investment options are virtually limitless, and you can make investment changes at any time. However, contributions are limited to $2,000 a year per child.

 Useful Resources