How To Afford College - A Comparison Of The Two Most Popular Methods
When you are thinking How To Afford College, two possible options might be weighing on your mind – student loans and 529 plans. The student loans are available to both parents of the student s and the student him- or herself. The problem with these loans is that you have to begin repaying almost as soon as the student is graduated. Now if the student has not yet begun a career, this becomes difficult. 529 plans are definitely better. Parents can make these investment when the child is still young, to pay for future education. The benefits are many. The amount is paid many years before the education begins, so that means, the principal is low, considering inflation. Then 529 plans are tax deferred, allowing a good growth of assets for the parents.