Roadmap GP

Question 1

College Years - Financial Aid Selection (one choice only)

Answer 1

Wealthy - Wealthy parents are a PLUS
Parent Loan to Undergraduate Students (PLUS)

Or

PooriSh (

Question 2

College Years - Tax credits/adjustments/deductions

Coordination rules per year, per expense, per student - use only 1

Answer 2

1. American Opportunity Credit
   - $2,500 per student maximum
   - first 4 yrs of college
   - JT phaseout $160-180K MAGI
2. Lifetime Learning Credit
   - $2,000 maximum
   - undergraduate / graduate
   - JT phaseout $110-130K MAGI
3. Coverdell withdrawal
4. Qualified tuition / 529 programs distributions
   * can also use educational gifts, earnings, UGMA/UTMA/2503(c) funds

Question 3

Graduate Years - options

Answer 3

1. Fullbright Scholarship
   Perkins / Stafford Loans
2. Section 529 Savings withdrawal
3. Coverdell withdrawal (to age 30)

Question 4

Roadmap decision tree (high level)

Answer 4

1. Selecting funding vehicle (4 options)
2. Select Financial Aid option (one choice only)
3. Coordinate with Credit / withdrawal/ distribution (use only 1 per year, per expense, per student)
   Can also use educational gifts, earnings, UGMA/ UTMA / 2503(c) funds
4. Select loan/ withdrawal for graduate years
   (Use only 1)

Question 5

College funding years - Vehicles for education funding and phaseouts?

Answer 5

1. Qualified tuition programs (QTP) (529 plans)
   - “college savings” or “prepaid tuition”
   - $14K per yr, per child
2. Coverdell ESAs
   - $2K per year
   - JT phaseout $190-$220K
3. UTMA and UGMA accounts
   - subject to kiddie tax (to age 24)
4. Saving bonds – education bonds
   - “Series EE” or “Series I” education bonds
   - JT phaseout: $115,750 – 145,750 MAGI
   - will not work in UGMA/UTMA