Member Education
Preparing for Higher Education
Valuable Savings & Lending Programs
Preparing to finance higher education? Consider the following valuable programs:
529 Savings Plans
529 plans are operated by state and educational institutions to help families set aside funds for future college costs. As long as the plan satisfies a few basic requirements, federal tax law provides special tax benefits to the plan participant. Everyone is eligible to take advantage of a 529 plan, and the amounts you can put in are substantial (over $300,000 per beneficiary in many state plans). Generally, there are no income limitations or age restrictions.
Coverdell Education Savings Accounts
Coverdell Education Savings Accounts (CESAs) are investment vehicles targeted to fund education expenses. They allow you to make annual non-deductible contributions up to $2,000 per child. Your account will grow free of federal income taxes and withdrawals from the account are typically tax-free as well. You will need to meet certain requirements in the years you wish to make the contributions, and in the years you take withdrawals.
Financial Aid
Sixty-three percent of all college undergraduates received some type of financial aid during the 2003-2004 school year*, so it makes sense to explore this avenue for your own child. Most financial aid is provided by federal and state governments. The amount and type of financial aid offered is based on two factors: the student’s merit (scholastic, athletic, musical, etc.) and the student’s financial need.
Back to School Resources from RCU
Your Credit Union offers a variety of savings and lending programs for all of your educational needs, including low-rate VISA® Credit Cards, high-yielding Money Market Accounts, Personal Loans and Home Equity Loans.
We invite you to set a no cost, no obligation appointment with one of our knowledgeable Financial Advisors, who are registered through CUSO Financial Services, LP, to discuss additional investment options and resources.
*Source: savingforcollege.com. Investments offered through CUSO Financial Services, LP (CFS), are not NCUA/NCUSIF insured, are not Credit Union guaranteed and may lose value. Financial advisors are employees of Redwood Credit Union and are registered through CFS. RCU is affiliated with CFS (Member NASD/SIPC).
