The typical way an advisor helps clients save for their kids’ college education involves a savings vehicle like 529 plans. Here are some lesser-known ways to ease the fiscal bite of college:
1. Notify the auto insurance agent. A family auto insurance policy may cover the car that a child takes to college, as long as the vehicle is registered with the parent as the owner. Also, if the student’s education brings their car to a new locale, it might make a difference in your premiums. Furthermore, if a college-bound student resides at a campus at least 100 miles from home and is not taking the insured vehicle, the client may be eligible for a reduction in auto insurance premiums.
2. Graduate in three years instead of four. Some colleges offer accelerated programs that allow students to graduate in three years instead of four, saving your client a year’s worth of tuition and related expenses. Some colleges offer a similar program that combines an undergraduate/graduate degree in five years. The student may have to take a heavier course load each semester and skip summer breaks to meet academic requirements, but it can help parents financially. Students can also participate in advanced placement tests (in high school), internships, and job training programs to trim tuition costs and earn college credit outside the classroom.