Saving money for college can help you avoid the burden of student loan debt. There are many tools to consider, including scholarships, financial aid, and college savings accounts.
Watch the video to learn about these College Savings Tools, then test your knowledge at the end of the lesson.
What is an effective college savings tool that can lower the amount of debt you’d take on to pay for college?
A. Scholarships
B. 529 Plan
C. Coverdell ESA
D. All of the above
How does a prepaid tuition plan work?
A. You receive a tax deduction on college savings after retirement
B. You contribute to a savings account that is held by the college
C. You purchase credits for future education at current tuition prices
D. You invest in stocks that triple in value when applied towards tuition
With a Coverdell Education Savings Account, the total annual contribution limit cannot exceed half of your annual salary.
A. True
B. False