Saving for college
A High-Yield Savings Account, Certificates of Deposit, 529 plans, prepaid tuition plans, and individual retirement accounts (IRAs) can make it easier to save for college.
IRAs, state-sponsored savings plans, and prepaid tuition plans are savings options that often offer tax advantages.
Individual retirement accounts (IRAs)
Take advantage of government incentive programs that were originally designed for retirement needs: IRAs can help finance your education and reduce taxable income.
State-sponsored 529 plans
Your state may sponsor a college savings plan. They are often called "529 plans," after the section of the IRS tax code that authorizes them. Each state determines the maximum amount your parents may contribute annually per child.
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High-Yield Savings Account and Certificates of Deposit
Put your money to work in a High-Yield Savings Account or Certificate of Deposit by Sallie Mae®. It takes just minutes to open an online account but the payoff can be long-lasting. You'll get great rates and terrific benefits like no monthly fees and no minimum balances.
Learn more.
Prepaid tuition plans
If you plan to attend an in-state school, a prepaid tuition plan may be a good option. Carrying low risk and offering tax advantages, these programs let you lock in tuition at the current rate. Under this plan, your state promises the amount you set aside will buy the same amount of tuition at a state school in the future.
More information
The following saving for college plans are discussed in detail in the Helping parents plan section.