College Planning

Helping children achieve their dreams through college education is likely on every parent’s wish list. However,
planning and saving for college education is one of the biggest expenses of their lifetime, alongside retirement
planning and buying a home. Here you can learn the basics about college costs and various considerations and
ways to pay for them.

At Eureka Wealth Solutions, we can help you evaluate your options as you financially plan for college, while also
staying on track for other goals, big and small. We can also recommend specialists in the areas of student
college planning, test preparation, and applying for scholarships and other financial aid resources.

How Much Does a College Education Cost?

College Planning - Eureka Wealth Solutions

  • Includes tuition, fees, room and board
  • Also consider books, supplies, and transportation
  • Some financial aid types and savings plans may consider additional expenses eligible as college
    costs
  • Note that public college costs are for in-state residents; costs for out-of-state public college
    students tend to be higher
  • College costs increased faster than inflation, and this trend is expected to continue

Figure 1: Historical College Costs

Historical College Costs - Eureka Wealth Solutions

 

Paying for College – Financial Aid

Figure 2: College Funding Sources

College Funding Sources - Eureka Wealth Solutions

  • Scholarships – merit-based, no repayment
  • Grants – need-based funds, no repayment
  • Work-study – students earn at part-time job
  • Loans – by students or parents, need to be repaid
    • Direct Subsidized Loans – based on financial need ($5.5-12.5K)
    • Direct Unsubsidized Loans – not based on financial need ($5.5-12.5K)
    • Direct PLUS Loans – for graduate students and parents of dependent undergraduate students
      (up to $20.5K)
    • Direct Consolidation Loans – allow you to combine all loans into one

Figure 3: Federal Student Loan Interest Rates

Federal Student Loan Interest Rates - Eureka Wealth Solutions

Paying for College – Savings

Figure 4: Household Savings by Account Type

Household Savings by Account Type - Eureka Wealth Solutions

  • At least 60% of savings vehicles have NO advantages
  • The third most used source is the most costly
  • Work-study – students earn at part-time job
  • Disciplined financial planning can realize significant savings

Figure 5: College Savings Used Annually

College Savings Used Annually - Eureka Wealth Solutions

College Savings Considerations   College Savings Vehicles to Consider
  • Federal income tax treatment
    (contributions, growth, and distributions)
  • State income tax treatment
  • Federal income gift tax treatment
  • Federal estate tax treatment
  • Maximum investment (annual and overall)
  • Ability to change beneficiary
  • Time/Age / Income restrictions
  • Federal financial aid treatment
  • Investment choices
  • Qualified expenses
  • Use for non-qualifying expenses
  • 529 College Savings Plan
  • Coverdell Education Savings Accounts
  • UGMA/UTMA
  • Qualifying U.S. Savings Bonds
  • 529 ABLE Plan
  • Roth IRA
  • Traditional IRA

529 Savings Plan Advantage

529 Savings Plan Advantage- Eureka Wealth Solutions

  • Federal income tax benefits: investments grow on a tax-deferred basis and distributions are tax-free
  • Must use funds for education: direct and indirect college expenses, student loan repayment, or K-12 tuition (depending on state)
  • High contribution limits ($235,000 to $529,000) / Low maintenance
  • Favorable financial aid treatment
  • May have state tax benefits
  • No self-directed investments
  • Investments not used for education can be rolled into student’s IRAs (SECURE 2.0), transferred to another beneficiary or face taxes and penalties
  • Can typically be used in conjunction with other savings options

College Reports

CFS Logo - Eureka Wealth Solutions We’ve partnered with Collegiate Funding Solutions
(CFS) to help you save on college and make the most informative decision about your child’s higher education by
providing you with insights unavailable elsewhere.

  • Costs for your target schools – including overall College Cost Calculator
  • Scholarship Estimator report – list of what’s available and chances of
    receiving it
  • Financial Aid Estimate report
  • Strategies to increase financial aid
  • College savings and funding strategies
  • Schools at a Glance report – similar programs to what you’re considering
    that might cost less
  • College Search and Query tool – vital information for better decision
    making

CFS School Comparison - Eureka Wealth Solutions

Fill out a quick form about the student and family financial situation, and receive a series of personalized
reports.

Give It A Try!

What Does Our College Planning Solution Include?

EWS College Solutions - Eureka Wealth Solutions

College Planning is part of our comprehensive Financial Planning and
includes:

  • Choosing the right account types for college savings based on
    your situation
  • Cash flow analysis and budgeting
  • Impact analysis on Retirement planning and other goals
  • Setting up and managing 529 Plans and/or other investment
    accounts if desired
  • What-if scenario planning
  • Technology platform that allows live goal tracking,
    collaboration, transparency, on-demand automated capabilities, and hands-on support
  • Recommendations for student college planning and test
    preparation
  • Recommendations for scholarships and other financial aid
    resources

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Do you have questions about your finances?
Do you want investments that reflect your values?
Don’t want to spend a fortune?

Whether you like to talk to an advisor or do it all online, we’ve got you covered. Our pricing is competitive and very straightforward – no hidden costs.

Whatever your personal situation, your goals and values, or your investable capital, we’ll work with you to create a portfolio that is right for you. And as your fiduciary, we’ll cover all your financial needs beyond investing as well, to help you achieve your goals.

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