COLLEGE PLANNING
Financial aid basics
Financial Aid Considerations
[Excerpted from Savingforcollege.com’s Family Guide to College Savings]
By now you're probably thinking that the financial-aid system is as complicated as the federal income tax, and that might be right. The summary presented here only scratches the surface. Navigating these murky waters may seem difficult, but remember these four basic points:
- No matter what the rules say, college financial aid officers have great latitude in determining the aid package your child ultimately receives. Officers sometimes use "professional judgment" to adjust the figures - increasing the amount of aid or creating a more attractive ratio between gift aid and self-help aid. They might be more apt to do so if they see other reasons to want your child, such as special abilities or unique characteristics.
- The rules are constantly changing. The way the financial aid system works today may not be the way it works when your child is ready for college.
- Your investment decisions now do not necessarily lock you in for purposes of future financial aid eligibility. You will likely have many additional opportunities to enhance your child's prospects for aid.
- Saving for college reduces your reliance on an uncertain financial aid system. Some families make the mistake of spending because they believe that saving puts them in a worse position to receive financial aid. Planning and saving for college helps you control your family's destiny no matter what the future brings.
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Top 529 College Savings Plans
One-year rankings are based on a plan's average investment returns over the last 12 months.
State | Plan Name | |
---|---|---|
1 | South Dakota | CollegeAccess 529 (Direct-sold) |
2 | Nevada | The Vanguard 529 Savings Plan |
3 | California | ScholarShare 529 |
Three-year rankings are based on a plan's average annual investment returns over the last three years.
State | Plan Name | |
---|---|---|
1 | Ohio | Ohio CollegeAdvantage Direct 529 Savings Plan |
2 | California | ScholarShare 529 |
3 | West Virginia | SMART529 WV Direct College Savings Plan |
Five-year rankings are based on a plan's average annual investment returns over the last five years
State | Plan Name | |
---|---|---|
1 | Ohio | Ohio CollegeAdvantage Direct 529 Savings Plan |
2 | New York | New York's 529 College Savings Program -- Direct Plan |
3 | California | ScholarShare 529 |
10-year rankings are based on a plan's average annual investment returns over the last ten years.
State | Plan Name | |
---|---|---|
1 | Pennsylvania | Pennsylvania 529 Investment Plan |
2 | Nevada | USAA 529 College Savings Plan |
3 | New York | New York's 529 College Savings Program -- Direct Plan |