10 things you can learn about saving for college from Game of Thrones

http://www.savingforcollege.com/articles/10-things-you-can-learn-about-saving-for-college-from-game-of-thrones

What can Jon Snow, Sansa Stark and Tyrion Lannister teach you about planning for college? Find out in this fun Game of Thrones slideshow.

WARNING: Contains spoilers, along with some very useful college savings tips!

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"A Lannister always pays his debts"

1. What You Borrow, You Must Pay Back

• If you plan on borrowing to cover college costs, you need to be aware of the consequences of missed payments.
• Delinquencies of at least 90 days will hurt your credit score.
• Default occurs after 270 days of missed payments and can lead to wage garnishing, collections or withholding of tax refunds.

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"They’re growing fast"

2. Start Saving With a 529 Plan as Early As Possible

• Like dragons, children grow quickly and the time for college will be here before you know it.
• A 529 plan is an investment account, which means the earlier you start saving, the more time you have for compound interest to accrue.
• A family with a newborn baby who starts saving $250 per month will have over $97,572 when it’s time for college, but a family who waits until their child is eight years old and makes the same $250 monthly deposits will only be able to save $41,424 (assuming an investment return of 6%).

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"It happens in my dreams"

3. We Can’t See Into the Future, But There Are Tools to Help Plan For It

• To estimate how much you’ll need to save for college, try the World’s Simplest College Calculator.
• To find out how much the state tax benefits offered by your state’s 529 plan are actually worth, check out the State Tax Calculator.
• If you’re considering taking out student loans, discover the true cost of borrowing with the 529 Savings vs. Loans Calculator.

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"It's the family name that lives on"

4. 529 Plans for Estate Planning

• Contributions to a 529 account between $14,000 and $70,000 can be treated as made over a five-year period for gift tax purposes.
• With this strategy, you can significantly reduce the size of your taxable estate while funding a grandchild’s college education.
• With a simple beneficiary change, you can pass on leftover funds to future generations, creating an educational legacy for your family.

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"The Iron Bank is always glad to be of service"

5. Be Sure to Apply for Financial Aid

• After you fill out the Free Application for Federal Student Aid (FASFA), the school will determine your Expected Family Contribution (EFC).
• Savings in a 529 account are reported as parental assets on the FAFSA and are assessed at a maximum rate of 5.64%, which is more favorable than a student’s assets, which are assessed at 20%.
• Be sure to review your financial aid package carefully – around 38% of awards are given in the form of loans, which need to be paid back.

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"We could establish a dynasty that would last a thousand years..."

6. You Don’t Have to Be Rich to Start a College Fund

• Many 529 plans offer automatic investment options with minimum monthly contributions as little as $25 a month.
• Earnings in a 529 account grow tax-free over the life of the plan, and withdrawals are not taxed as long as they are spent on qualified education expenses.
• These federal tax advantages, combined with possible state tax deductions, can really help boost modest savings over time.

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"He will be a better king than Joffrey"

7. 529 Plans Allow for Beneficiary Changes

• If the original beneficiary is not able to use all of the funds in a 529 account, consider changing the beneficiary to another family member.
• Most 529 plans allow you to change the beneficiary of the plan once per year.
• The account owner will retain control of the account, regardless of the beneficiary change.

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"A little lady shouldn’t play with swords"

8. 529 Funds Don’t Have to Be Used for Traditional College

• If your child heads down a different path from what you originally intended, you might still be able to enjoy the tax benefits of your 529 plan.
• Qualified education expenses include tuition from any eligible post-secondary institution, including trade and vocational schools and international colleges.
• If the child decides to attend a U.S. Military Academy and you need to make a non-qualified withdrawal, the principal portion can be withdrawn tax-free and the earnings portion will avoid the 10% penalty tax and only be subject to income tax.

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"Growing up at Winterfell, all I ever wanted to do was escape..."

9. You Don’t Have to Use Your Home State’s Plan

• 529 plans are operated by the states, but you can invest in almost any state’s plan, no matter where you live.
• In most cases, your child will be able to attend college in any state, regardless of the plan you choose.
• However, when shopping for a plan, you should always check your home state’s plan first to see if they offer any tax breaks for residents.

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"You know nothing, Jon Snow"

10. Use the Resources Available to Effectively Plan for College

• Get in the know - Savingforcollege.com offers tools like calculators, discussion forums, videos and other content packed with helpful advice on preparing for the costs of higher education.
• You can also research and compare different 529 plans from almost every state.
• If you wish to consult a professional, some financial advisors are very knowledgeable on 529 plans, and can even help with scholarship and financial aid questions.

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