Ask the Expert: How Do I Save for My Kids’ Education?

There are government programs available
but you’re right it is scary because it’s something you don’t know about and
most people are not educated on. There’s an income based repayment program based
obviously on your income and then there’s a pay as you earn, up to
twenty-five years which is a long time. The fact of the matter is once you made
25 years of payments that’s it you don’t owe the money whether you owe student loan debt or not it’s over. The
Coverdell is a tax plan that only allows you to defer up to $2,000 a year in
taxable income. Which is helpful but let’s face it it’s not going to pay the
bill for tuition these days. That being said a 529 plan or better yet a state
sponsored prepaid college fund is the way to go

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