A Look at Mississippi’s 529 College Plan

What is a 529 plan, and how can it help bring your children closer to their educational goals? As a college savings vehicle, state managed 529 college plans are a relatively new option, and many parent have not yet taken advantage of what they can do for their children.

Here is some information on what you need to know about a 529 college savings plan, including what the state of Mississippi can offer your family in the way of 529 college savings plans.

What Are 529 College Savings Plans, Anyway?

The development of 529 college savings plans are relatively new, although most states now have some kind of 529 plan in place. A 529 college savings plan is essentially a special state managed college savings incentive program. The 529 plans were put in place to help parents save money for their college education. There are many things to take into consideration before you begin to invest in your state’s 529 college savings program.

When You Choose a 529 College Savings Plan . . .

Most importantly perhaps, you should keep in consideration the amount of time that your money will be invested in the 529 college savings plan. Other important factors to consider includes you family’s income tax bracket, the fees and charges that are loaded into the plan, the type of fees that are involved, the amount that you will be investing, and they types of income tax deductions that may be available to you if you open a 529 savings plan. Be on the look-out for fees. Even a small difference in fees can make a substantial difference.

Other Important Considerations

When you have decided that a 529 state savings plan is right for your family, you will find that there are still other considerations to be made. One of the most prominent features you will want to focus on is the state tax benefits that may accompany the 529 plan you are considering. Ask about the kind of special tax benefits that will be offered to you as a result of investing in a specific 529 plan. Will your state allow deductions of all or part of your earned interest?

The Mississippi 529 Plans – The MACS Option

The state of Mississippi offers two options that allow you to save for college. Families can choose to invest in either of these section 529 plans, or both of the plans if they so wish. Both of these plans were designed to help families save and plan for their children’s higher education opportunities and expenses. The first plan is known as the Mississippi Affordable College Savings Program, also known as MACS.

The MACS program lets families save for all qualified expenses. Under this section 529 savings plan, qualified expenses refer to tuition rates, fees, room and board expenses, and books. While you don’t have to be a resident of Mississippi to take advantage of the MACS program, Mississippi taxpayers can receive up to $10,000 in state tax deductions.

Your Second Option – The Mississippi Prepaid Affordable College Tuition Program (MPACT)

The MPACT program is described as a prepaid college tuition program. It allows families to pay full tuition along with mandatory fees at any public institution of higher learning in the state of Mississippi without having to worry about the rising costs of education.

In effect, parents can pay the current cost of tuition so that it will be paid off while their students reach college age. However, the MPACT program only covers tuition rates. It does not cover the expenses associated with room and board, books, transportation, or other college related costs.

Helpful Hints for Identifying College Scholarships

College is extremely expensive. Whether you are going three for your undergraduate program, or a three year graduate program, you need proper funding. For this reason, many people look to scholarships in order to fund their college education. You might think that getting a scholarship is difficult.

However, you should be aware that there are literally thousands of different types of scholarships that are available to you. It is true that some scholarships are highly specialized and require very strict qualifications. However, with a little patience and work, you can find many scholarships that you can apply for today.

Research: when you want to apply for a college scholarship. The first thing that you will want to do is begin researching the various types of scholarships that you may qualify for. There are many sources of scholarships available to you on the Internet or through your guidance counselor.

One place that you may look that you may not have considered is through certain companies. If your parents have worked for a large company or firm for many years, they may offer scholarships to employees children. Check these scholarships very carefully to see if you qualify.

In addition, if you have worked at a company as a student, you might also qualify for some type of scholarship offer through that company. You also want to look at scholarships that are offered to students who have a particular area of interest.

For example, if you are interested in majoring in journalism, then you will want to look at specialized scholarships that are available to you. Look at all of your possibilities and get your information and facts in order and you might be surprised at how many scholarships are available to you.

Paperwork: The next thing that you will want to do when you begin identifying College scholarships is to get your paperwork in order. This means that you need to have already taking your college entrance exams such as the SAT and the ACT.

Think surely you have your high school transcripts available, and even have letters of recommendations already available to send off with your scholarship applications. Most scholarship committees want to see the types of things that you have done throughout high school.

Make sure that you have all of the information about your extracurricular activities, volunteer work, work and part time jobs or other areas of interest available and ready to go when you apply for scholarships. When all of your paperwork is in order, you will have an easier time applying for college scholarships.

Read the application: when you apply for a college scholarship, you will want to read the application very carefully before sending it off. Make sure that you know, what is required out at you before you put it in the mail.

There are so many people that apply for scholarships that an incomplete or messy application will be thrown in the trash immediately make sure that every piece of paper and information that the scholarship committee wants to see if they are in your packet.

In addition, make sure that everything is a neat, and even somebody to proofread your essays and other information. You have one chance to make a good impression, so stay diligent in your efforts.

Patience: Of course when you have college scholarships, you will need to remember that the competition out there is extremely fierce. You need to be diligent and apply for as many scholarships that you possibly can. Also be patient about your results--you certainly will not get every scholarship you apply for. However, if you work hard and do your research, you may be surprised to find out that you have been awarded.

Financial Know-How for New College Students

If you are a prospective college student or already in college, you should know that there is a whole industry out there waiting to take your money. As a new college student, it is important that you pay close attention to how your money is being spent.

It can be very easy to lose track of your money, especially with the stress of being on your own for the first time. Here are some tips for gaining financial know-how if you are a new college student.

New College Students – Know that You Are a Target

If you are a new college student, you should know that there are a lot of people out there who think you are an easy target. Credit card companies, private lenders, cell phone companies, and yes, even booksellers, all roll out promotions and advertisements in the hopes of catching the attention of young college students.

Walk through any college or university during the first week of classes and you are bound to come across dozens of tables set out to get college students attention. Know that these companies are relying on your financial inexperience. Watch out for promotions that seem too good to be true. They probably are.

High Interest Credit Cards – The Bane of the New College Student’s Existence

What is perhaps the most important thing to remember if you are a new college student when it comes to taking charge of your finances? Credit cards, or perhaps more specifically, high interest credit cards.

Did you know that credit card companies will specifically target college populations? Credit card companies are well known for drawing in college populations with promotions, maybe a college sweater or gift card, and with their promotional annual percentage rates. Note the word ‘promotional’.

That means that what seems like a very good interest rate may only last you for a few months, and then the credit card takes on much higher interest rates. Be very wary of so-called student credit cards with promotional low interest rates. Read the fine print very carefully, and never sign up for a credit card just because of the cool promotional gift. It could end up costing you hundreds of dollars!

Making Sense of Your Financial Aid Package

Financial aid packages can definitely be confusing. There are subsidized student loans, unsubsidized student loans, work-study funds, grants, and scholarships. When it comes to understanding your financial aid package, it can be tough to crack the jargon that usually accompanies most of these packages.

Let’s tackle one of the most confusing aspects: the difference between subsidized and unsubsidized student loans. On the whole, subsidized federal student loans are the most desirable. These allow you to lock in low interest rates, and do not begin to calculate interest until after you graduate.

Visit Your College’s Financial Aid Office

It happens to almost every college student. Inevitably, there will be a problem with your financial aid package, there will be a problem with your financial aid funds, you will be asked to turn in supplemental forms, or you will simply not understand part of your package and you will want to ask a question.

By all means, try to ask any questions you may have about your financial aid package before school starts. You don’t want to have to stand in the mile long line that trails out of the financial aid office on the first few days of school across every college campus in the United States.

If you have to stand in line, try to get there first thing in the morning, even if it means dragging yourself out of bed. Also, make sure you bring every piece of information you may need, including any forms, correspondence, and tax forms that you may be asked for.

Changes Made To The “College Kid” Tax Rules

One of the changes that people are starting to realize that is becoming a real pain is the 529 College saving plans. It seems everywhere we turn new changes are being made to the so-called college kid plans.

For now though the tax free exempt is there, but that could change at anytime. People sometimes don't realize that every Congress and state legislatures look at ways to get extra money and taxing the 529 college funds is something that they consider every year.

Starting though in 2008 college kiddie tax as it is called is being expanded again to 18 and to full time students age 19 to 23. Right now though for kids under 18, there is no tax. This means invest as much as you can before they turn 18 so the tax won't hit you.

The one loophole is the tax can be avoided if the child receives more than one-half of his own support from wages that he has earned during the year. The 529 college savings plans a hot topic right now as more people are trying to avoid the college kid tax. The easiest option that they have is to use these 529 savings programs.

What is happening is more and more options are being taken away from the working American and their children. This doesn't look like it will end anytime soon either. People are learning that the tax is something that they will have to pay unless they come up with some other kind of option.

The 529 college savings plans looks like the best option to avoid the tax and many people are rushing to get into these programs. The biggest problem with that is they could be getting into programs that won't be best for them or their kids.

The college kid tax has really affected the way you do things and that will continue to change in the next few years. Getting the best bang for your buck is something that more parents and grandparents will look into more carefully as they don't like paying extra taxes if they don't have to.

Money is tight these days and getting the most for your investment dollar is very important. Finding the right 529 college saving plan is something that will take some time and research if you want to save yourself a few dollars.

The future of these 529 college savings plan is also a very hot topic these days. Plans are changing all the time and costing consumers more as states look to turn profits on these products.

Millions upon millions of dollars are being tossed into these programs and the chance for something to go wrong with these programs mount, as more money is invested. Fraud is something you have to watch even with state run programs. For the most part though all the programs are ran extremely well, but you will always have bad apples sometimes.

Proper research and knowing what you want out of your investment will save you money in the long run and your kids education will prosper because of the extra detail you paid to it. The college kid tax has made more Americans leery of the government and they are trying to keep as much of their money as possible.

Their only real source left is these 529 college saving plans which will continue to grow in the future. Education is something parents don't mind paying for, especially if they can save themselves dollars off their tax bill in the process and their kids also profit from it.

Wading Through the Financial Aid Options for College Students

The world of financial aid is often one of the most dreaded parts of getting ready to go off to college. Unless you have been offered a full tuition scholarship well ahead of graduation, chances are you will have to do the work of getting financial aid to fund your college years.

Financial aid can definitely be one of the more confusing aspects of going to college. Here are some tips to help you wade through the financial aid options for college students.

Your First Stop – Fill out the FAFSA Form

What is the FAFAS form? As most college students know, the FAFSA should be your first stop on the road to securing financing for your college years. The FAFSA form is the Free Application for Federal Student Aid. It is a federal form that you should fill out roughly a year before you plan to attend college or university.

The FAFSA form will ask you for personal information and information about your family’s income. By filling out the FAFSA in a timely manner, you automatically become eligible for federal student aid, which may include Pell Grants (aka, free money), subsidized student loans, unsubsidized student loans, and financial aid in the form of work-study funds. Pick up the FAFSA form at your local library or college financial aid office. You can even fill out the FAFSA form online.

Seeking Out Private Funding Sources

Another very popular option is to seek out financial aid in the form of private funding sources. Private funding may mean seeking out scholarship assistance from private companies, which can range from the local supermarket chain to a major bank corporation.

Most of these private funding sources require that apply with them directly for a scholarship contest of some kind, which may include an essay competition or simply an application with reference letters. Make sure to follow directions carefully, as each company has different rules and regulations.

Work Your Way to a College Degree – Taking Advantage of Employer Tuition Assistance

Many employers offer tuition assistance as part of your benefits package. Every employer is different, so ask your human resources representative if you think that they may be able to help you with tuition. If you are unemployed and looking for a job, consider seeking out employers who offer tuition assistance as part of their benefits package.

Seek Out Specialty Scholarships

Before you go the route of private lending, make sure to put your best effort forth when it comes to finding suitable scholarship opportunities. Just because you didn’t make straight A’s in high school does not mean that you are not scholarship material.

There are many specialty scholarships out there that target specific majors and industry. Consult the thickest scholarship finding guide you can find for opportunities that suit your situation.

Your Last Stop – The Private Loan Industry

Finding money for your college years is always difficult if you or your parents do not happen to be independently wealthy. However, there are many options available for those who can’t get their hands on a full tuition scholarship, federal, private, or otherwise.

There is a growing private loan industry that is now making many loans available for families and college students. However, if like many college students, you find yourself having to take out a large loan to pay for your studies, you will need to do some serious interest rate shopping.

Always opt for a federal subsidized student loan if possible, as these usually lock in a low interest rate and offer the best rates. However, if this is not possible, shop around with different lenders to find the one with the lowest interest rate and with the most flexibility. Make sure to read all the fine print.

Funding Options for College Bound Students

With so many funding options for college bound students, which one is best for you? Paying for college may be the largest expense a family can have, especially for families with multiple children. There are so many funding options to assist you. Here are some brief descriptions of your options.

A Coverdell educational savings account is a popular plan for college funding. You can contribute up to $2000 per year per child. If you use these funds for qualified education expenses, the earnings are tax deferred and free of federal tax. You select the investments for optimal flexibility.

Section 529 plans are state-sponsored plans that can be used to pay college expenses. This is a tax-advantage plan for approved education-related expenses such as tuition, room and board, supplies and fees. The state generally hires an investment firm as a program manager who provides various investment choices.

You invest in the appropriate portfolios that match your investment time-line and risk tolerance. The two types of 529 plans are prepaid and savings. Prepaid plans (independent) let you purchase tuition credits at member colleges, at today’s rates, for future usage. Savings plans have growth based on the market performance of your investments.

UGMA/UTMA accounts are custodial accounts opened on behalf of a minor. This gift is considered irrevocable with all withdrawals required to be for the minors benefit. The balance of the account is turned over to the minor at the age of majority.

Grants and scholarships are “free money” options that don’t have to be paid back. This is a debt-free way to fund an education. Financial need typically must be demonstrated to receive a grant. Scholarships are usually based on merit.

Work-study programs provide part-time employment from the federal government to earn money for college. This program is not only in place to help to fund college, but a work-study job can provide essential work experience.

Federal student loans are low interest, long-term loans for students. These loans offer attractive repayment options including being able to post-pone payments while attending college and in times during repayment of financial difficulty. There are federal loans for both parents and students. The best know ones are Stafford Loans for students and PLUS for parents.

A lot of people turn to these programs for their funding needs. You can also often find private loans that have low interest rates for college students. Be sure to choose a reputable lender who in knowledgeable on loan choices if using a private lender.

Tuition payment plans are an interest and debt-free way to spread payments over several months. Not all colleges offer this plan. Typically used by families who have income that will cover the gap between the amount they are billed for college and the amount of financial aid received.

Assets of a family are often used to fund college. IRA’s, savings accounts, 401k plans and stocks offer a debt-free way to fund an education. As a word of caution, before you liquidate one of these accounts, consider the earnings you may be missing out on. Use this number as a comparison to the amount of interest you would incur from a student loan plan.

Credit cards are often a popular but poor choice for funding a college bound student. This is for the simple fact that interest rates can be high. Use this funding choice with caution.

It’s important to think about your own situation as you plan to fund your education. Establishing a savings plan at an early age will make a huge difference. There are lots of funding options for college bound students. Which one makes the most sense for you?

Why In-State Colleges Should Be a Financial Aid Solution

Are you looking for a viable way to pay for college, but most of your college options seem like they will only put you years in debt? Is it really worth to pay for thousands of dollars in tuition each year? How can you avoid the stress of an expensive college education?

For those seeking a high quality education that will help them stay out of debt, an in state college could just be the ticket. Here are a few reasons why you’re in state college or university is worth its weight in gold.

Your In State College – Your Financial Aid Solution

How can your in state college become your financial aid solution? Easy. Attending an out of state college automatically adds thousands of dollars to your financial aid template.

Why not save yourself the stress of footing such a large bill and look for a good in state college or university? Most states have at least one or two good state colleges to choose from. Going to an in state college does not mean that you will have to sacrifice the freedom of the college experience.

Chances are you will have to make some kind of a move, even if it means moving only forty minutes away from your hometown, or on the other hand, it could possibly mean you will be moving hours away. Whatever you choose, know that an in state college will help you save thousands over the years.

Why Are In State Colleges the Affordable Choice for Students?

Choosing an in state college can be a great financial aid solution because it means that you qualify for in state tuition. This means that because you have already established residency, you will not have to pay the out of state tuition, which is often several thousand dollars more.

Moreover, in state tuitions often offer many tuition waivers to incoming students who hail from in state. If you have made above average grades throughout high school, there is a good chance that you will qualify for some sort of in state tuition assistance.

Even if this is not the case, you may consider using your local community college system as a springboard to a local in state college or university. Most community colleges also offer tuition scholarships for students wishing to transfer to an institution of higher education.

Get More Out of Your Financial Aid by Attending an In State College

Chances are that you will get more out of your federal aid if you choose an in state institution of higher learning rather than an out of state choice. You have more local resources at your disposal if you are applying for an in state institution.

In State Colleges - Offering You a Great Education without Breaking the Bank

The dirty secret about elite private institutions of higher learning is, in most cases, you can get the same quality education for a fourth of what they charge each year in tuition. Many in state colleges are highly ranked institutions of higher learning.

Recent analysts have pointed out that costs to attend many highly ranked elite private colleges and institutions have ballooned, making it even more difficult to finance a four year degree.

Along with tuition rates, the number of applicants has made it even more competitive to be accepted to these institutions. With more people applying and tuition rates climbing, securing a good financial aid package at an expensive, elite private college or university was never such a challenge.

Moreover, researchers have pointed out that a fine college education can be had at many public state colleges and institutions. In effect, in most cases you will simply be paying for ‘bragging rights’ rather than a worthier or inherently more valuable college degree.

Community College – A Financial Head Start on Education

Why should you consider making a pit stop at community college before heading off to college or university? There are many reasons why community college represents a head start on education. Here are some reasons why you should put your local community on your list of life pit stops.

Community College Allows You to Get an Academic Head Start

Want to get a taste of college while you are still in high school? Many community colleges allow high school seniors to take courses that can be counted towards a future degree. Your local community college can be a great way to start your college career early, even if it means taking a summer course after high school graduation.

Your local community college can be a great way to prime yourself for university or four year colleges. For instance, taking a community college can be a great way to get prerequisites out of the way so you will be clear to take a higher level course once you get to a four year institution. Moreover, it is very affordable to take classes at the community college level.

Community College Can Also Help You Get a Financial Head Start

Why should you make a pit stop at your local community college before heading off to a four year college or university? Easy. It can save you thousands of dollars. In most states, you can easily fulfill many of your undergraduate competencies by taking those classes at your local community college. Most community colleges offer smaller class sizes and highly qualified instructors.

At the university label, chances are you will spend most of your ‘required’ courses in oversized lecture halls with grad students mumbling their way through the lectures. In short, going to community college can save you money and maybe even get you a better education footing than taking the very same course at a university.

Not a Straight A High School Student? Community College Offers a Blank Slate

For many people, community college offers a much needed clean slate. Perhaps you are not able to go to the college of your choice directly out of high school because of your grades. Community college is a great way to pursue a higher education at your own pace, without the high stress burden of a big tuition bill that you would get at a traditional four year university.

By taking classes at a community college, you can begin to zero in on your interests. You can begin to build an academic record that you are proud of. Make sure to take advantage of all the resources that will be available to you on campus, including tutoring services and financial aid consultations.

Using Community College as a Springboard to a Traditional Four Year Campus

Community college is a great place to use as a springboard to a traditional four year institution of higher learning. You can much of your two year required coursework out of the way and experiment with many different kinds of courses and majors.

Perhaps even more importantly, attending community college can give you a major financial age. There is a good chance that your public, in state, four year college or university offers transfer scholarships.

Most community college transfer scholarships will cover your tuition bill at the local in state college or university. So you didn’t get that full tuition scholarship out of high school? Well guess what? You can get it by excelling at community college. In this sense, your local community college can give you a great academic and financial opportunity, operating as your gateway to the rest of the world.

The Scoop on Pell Grants for College Education

Paying for a college education – it’s a thought that keeps many parents up at night. After all, everyone knows that having a college education is the entrance into many good jobs and careers, and everyone also knows that the cost of getting a college education seems to be constantly increasing.

A college education can be more expensive than buying a home for some people and the cost of attending a college or university is prohibitive to some families, even though they know that giving their children the opportunity to get a college education would give their kids a leg up on the competition in the job market. The cost becomes even more overwhelming for parents who have more than one child headed to college.

There are plenty of savings plans available to families to put a little aside for their children’s college education while the kids are still in elementary school and high school, but what happens if you don’t have any money left over to put aside into a savings plan at the end of each month, or what happens if you simply didn’t save anything at all, and now the senior year of high school is upon you? Does that mean that all hope is lost?

The good news is that there are ways for students who come from families without the resources to send them to college to get a good college education anyway. The Federal Pell Grant scheme is one such program. Federal Pell Grants differ from other funding opportunities for students because they do not need to be paid back.

These grants are cash payments from the government to students who need them to pay for college, and that is the end of the story. The student does not have to work on campus to get this money and they do not have to pass a credit check, nor do their parents. Federal Pell Grants have helped millions of low income families give their children a college education.

To qualify for a Federal Pell Grant, you first have to prove that you really need one. The government will make a decision based largely on the income of the parents, but they will also consider factors like how much the school costs to attend, how many classes the student will be taking, and how long they plan to be in school.

These factors will determine not only who gets a grant but also how much money each person will get. Federal Pell Grants are distributed through the student financial aid office at each school.

Federal Pell Grants certainly have helped a tremendous number of students get an education, and they can truly be a lifesaver for a family in need, but don’t make the mistake of thinking that they can solve all of your problems. In many cases, the amount of the Pell Grant, which is awarded yearly, is much less than even tuition at the school, let alone additional costs like room, board, and books.

Some people also complain that the need based criteria of the loan is too strict and it excludes working class families who can’t afford the tuition but still make a living for themselves. Also, the system can punish a student who finds work while in school – the increased income of the student may put them out of the Pell Grant bracket.

For all of these reasons, when you’re planning your education financing, you should count on using Pell Grants only as a supplement. You should also consider work study programs at your school, federal subsidized student loans, and student loans from private sources.

Your College Loan Options for the Future

Heading off to college the first time is scary for anybody looking at the price for your college education may even scare you more. The good news is that there are many ways you can find your college education if you are willing to do your research and take the time to fill out the necessary applications.

Even if you have not saved for your college education for years, you can still go to college and find a loan that will help you get through the next few years. Here is a look at your college loan options for the future.

The Perkins Loan: If you have done your research on college loans you have probably heard of the Perkins loan. This alone is also called the Formerly National Defense Student Loan, the Perkins Loan Program and the National Direct Student Loan.

This alone is based on need and can provide you with a low interest loan to help you finance your college education. In addition, if you qualify for a Perkins loan over 1800 participating colleges will take the Perkins loan. This gives you plenty of opportunity to find a college that fits your needs.

If you are interested in taking out a needs-based college education among such as the Perkins loan, then you need to make sure that you qualify, you can do this by going online in learning more about this particular loan or speaking to your college education counselor about this loan.

Federal GRAD Plus Loan: This loan is for graduate students need financing for their graduate school. This one is also a needs-based loan and offers a low interest repayment after you have graduated. In order to qualify for this loan, you must be a citizen of the United States or an eligible noncitizen.

You also must be a student in a graduate or professional program and enrolled at least half of the time. Currently this loan has a fixed interest rate of 8.5%. The amount of money you will get when you apply for this loan will depend on your need and may vary from student to student.

You should also remember that when you take out the loan. You will not be responsible for repayment while you are in school. However it does accrue interest, while you are in school. You will be responsible for the total amount plus interest while you are repaying your loan after you have graduated.

Subsidized Stafford Loan: this loan is available to United States citizens or eligible noncitizen who are enrolled in a college program or professional program at least half of the time. The amount of loan that you will receive will depend on your financial needs.

Not everybody can qualify for this type of loan. The amount of money that you will receive with this loan is $3500 for the first year, $4500 for the second year, and for your third through fifth year in school, you can get $5500 each year.

If you are a graduate student and you qualify for this loan, you can get $8500. The interest rate on this loan is currently fixed at 6.8%. In addition, it is important to remember that your repayment schedule began six months after you graduate or, if your school enrollment drops below half-time.

You do have up to 10 years to repay this loan and extensions are granted in certain situations. There are a variety of ways to pay back this type of school loan. So you should check with your loan officer or the Internet for information about this very popular college education loan.

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