Tuesday, April 18, 2006

Baby Goes to College

"A father is someone who carries pictures where his money used to be." ~ Anon

Over the weekend, I stopped in to visit my sister and my nephew. While I was there, we started talking about my income and she jokingly asking if I was going to pay for my nephew to go to college when he was old enough.

This was something I had actually considered doing not long ago. When I was setting up my savings plans, I thought about starting one for him. Truthfully, I would have done it then, but I'm barely making ends meet right now after a mishap at the bank. I may one day take a portion from my regular savings and move it into a 529, which is something I would have to research further, but I did however find some information relevant for my near future...

From Money 101 Lessons
Top Things to Know - Saving for College:

9. Lenders can be flexible when it's time to repay.

There are still ways to cut costs after you graduate and begin repaying your student loans. For instance, if you make 48 consecutive on-time payments, most private lenders will knock two percentage points off your interest rate.

10. Taxpayers with student loans get a tax break.

You may deduct the interest you pay up to $2,500 a year if your modified adjusted gross income is less than $65,000 if you're single or less than $130,000 if you're married filing jointly. The deduction can be taken for the life of the loan.

I'm excited to learn that repaying student loans isnt all bad. Having just consolidated my student loans last week, I was pretty upset about my final bill - 43,000$


Post a Comment

Subscribe to Post Comments [Atom]

<< Home