General Principles & Education Roadmaps

Question 1

Education funding

College funding years

Answer 1

1. UGMA/UTMA
   Watch for investment time horizon and kiddie tax
   EE bonds won’t work in these accounts
2. EE educational bonds
   Parents should own, watch phase outs
3. Coverdell ESA
   $2,000 per year
   Phase outs
4. Section 529 colleges savings / prepaid tuition
   Also known as QTP
   $15,000 contribution per year or times 5 years $75,000

Question 2

Education funding

Colleges years

Answer 2

1. One choice only:
   - Wealthy (PLUS) Parent Loan to Undergrad Students
   - PooriSh (<=$60,000)
   Pell Grants, Supplemental Education Opportunity Grant, Subsidized Staffordshire Studrnt Loans
2. Coordination rules per year, per expense, per student - use only one
   - American Opp Credit $2,500 per student (4yrs)
   - Lifetime Learning Credit $2,000 max undergrad/grad
   - Coverdell withdrawal
   - 529 distribution

Can also use educational gifts, earnings, UGMA/UTMA/2303c funds

Question 3

Education funding

Graduate years

Answer 3

Fullbright Scholarship
Stafford loans

529

Coverdell to age 30