For most families paying tuition for college can be stressful and often confusing. Maximizing your college savings and lowering your tuition expenses requires a mixture of strategies. To properly pay for college families need to bring together the financial aid process, college saving plans, educational tax strategies, various financing options and a cash flow analysis. I find it easier to evaluate this decision as an investment in a child’s future and not something you need to do as a parent. Creating a partnership with your child or at least discussing the finances of this decision is recommended.
To maximize your college dollars, you need to understand the sequence of certain strategies. The term qualified college expenses can have multiple definitions depending where it is being used. For use in a 529 plan it is used one way but the definition is something different when it is used for the opportunity tax credit. Another point that families should review concerning tax strategies is to make sure that they are not reusing the same expenses for multiple tax advantages.
The video on paying tuition for college will review:
Strategies beyond the financial aid process
Summer and community college courses