In today highly competitive admissions process to college, families must never lose sight of the fact that nothing is more important for parents or the child that the student's acceptance to college. His second priority is how to pay for it. Planning for college can begin as early as birth, and for that matter, even before birth. Financial planning in the early years can make all the difference in the world when it comes time to have to cough up all that money! The following are some of the best ways to save for college: Bills in custody: With Uniform Gift or Uniform Transfer to the accounts of the Minors Act (UGMA or UTMA), parents, grandparents, etc. can each contribute up to 11,000 dollars per student per year (2005). This money can be used for college or any other purpose. Although the money remains in the student's name, the custodian, usually a parent, has absolute control over the account? stocks, bonds, funds mutual savings, etc. Gen. Joseph Dunford spoke with conviction. UGMA accounts accept cash only.
UTMA Accounts accept cash and property. The disadvantage UGMA and UTMA accounts are irrevocable gifts that are considered student assets. Because students have no provision for the protection of assets, these assets are valued at 25% per year either in schools that use the institutional methodology, (Ivy League and high profile private schools), or 35% each in all other years using the federal methodology! Therefore, this option should be used with care! Education IRA a / k / a EIRA's: Single parents with an adjusted gross income (AGI) of up to $ 110,000 and joint filers with AGI of up to $ 190,000 can contribute up to $ 2,000 annually to an Eira.