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Education Funding General Education InformationU.S. Government Savings Bonds may be used as a potentially tax advantaged way to fund education expenses. The College Board, a non-profit association of 4,700 educational institutions, is an essential source of information for college planning. IRS Pub 970 Tax Benefits for Education: The whole nine yards, but presented as a link for easier navigation. Lunch-Money.com: is a private site that is free for students seeking general information about a college education. Has a number of useful calculators. Section 529 Plans 
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. There are two types of 529 plans: pre-paid tuition plans and college savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. In addition, a group of private colleges and universities sponsor a pre-paid tuition plan. Pre-paid tuition plans generally allow college savers to purchase units or credits at participating colleges and universities for future tuition and, in some cases, room and board. Most prepaid tuition plans are sponsored by state governments and have residency requirements. Many state governments guarantee investments in pre-paid tuition plans that they sponsor.College savings plans generally permit a college saver (also called the “account holder”) to establish an account for a student (the “beneficiary”) for the purpose of paying the beneficiary’s eligible college expenses. An account holder may typically choose among several investment options for his or her contributions, which the college savings plan invests on behalf of the account holder. Investment options often include stock mutual funds, bond mutual funds, and money market funds, as well as, age-based portfolios that automatically shift toward more conservative investments as the beneficiary gets closer to college age. Withdrawals from college savings plans can generally be used at any college or university. Investments in college savings plans that invest in mutual funds are not guaranteed by state governments and are not federally insured. Contributions to 529 savings plans, Coverdell Education Savings Accounts and UGMA/UTMA accounts are subject to gift-tax rules. Under these rules, you can contribute up to $12,000 a year ($24,000 for married couples) without gift-tax consequences. Under a special election, you can invest up to $60,000 ($120,000 for married couples) to a 529 account at one time by accelerating five years’ worth of investments with no federal gift-tax consequences. If you make this election, additional contributions or other gifts to the same individual over that five-year period will exceed the annual gift-tax exclusion. Government information sources include An Introduction to 529 Plans from the Securities and Exchange Commission. The Official Virginia 529 plan site offers information on the direct-to-public Virginia PrePaid Education Plan (VPEP) and the direct-to-public investment plan, the Virginia Education Trust (VEST) as well as the Virginia College America Plan, the investment portion of the Virginia 529 plan available only through financial advisors. An excellent place to begin researching the Virginia 529 is the Virginia sponsored FAQ here.Smart Saving For College and College Saving Plans - School Yourself Before You Invest are both offered by the National Association of Securities Dealers and are excellent sources of generic 529 information and specific investor warnings. Formed in 1991 as an affiliate to the National Association of State Treasurers, College Savings Plan Network serves as a channel for information about existing college savings programs (529 plans). Commercial sites include Saving For College, A decent site with lots of information about the 529 plan, but they do try to get you to "join." For more information, also visit Invest For College, Scholar's Edge, and Morningstar.Financial Aid, Loans and Scholarships Loans to finance a college education can be usefully thought of in four categories. First are loans taken out directly by students, such as the Stafford and Perkins loans. Second are loans to parents, usually called Parent Loans for Undergraduate Students (PLUS). Next are private student loans, also called alternative student loans. And, finally, come various consolidation loans affording a means to combine different existing borrowings into a single loan. The Financial Aid Information Center of the US Department of Education is a vast and basic source of information on financing higher education. Another excellent source is FinAid, which provides a wide range of information on college financial aid, loans and scholarships. FAFSA ; Free Application for Federal Student Aid. Information about and forms for college financial aid. Required by most colleges and universities to apply for financial aid. Available April 1, 2007, a new online tool called Fafsa4caster will help families determine eligibility for federal aid, how much the family will be expected to contribute to college and whether the family will be eligible for the Federal Pell Grant Program, which provides more than $4,000 for college expenses and does not have to be repaid. Created by Congress in 1972 as a government sponsored enterprise, Sallie Mae provides federally guaranteed student loans. Nellie Mae; A wholly-owned affiliate of Sallie Mae. U.S. Dept. of Education's William D. Ford Federal Direct Loan Program. FastWeb!; Search engine for college scholarships.
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