Even saving a few dollars each week can help you pay for college. You can ask family members to help by contributing money toward a college savings plan for birthday and holiday gifts. If you have extra money, put a portion in your college savings account – every little bit helps!
Reduce Education Debt by Saving
Saving for higher education may help reduce the need to borrow. Students and families who have college savings are always in a better position when it comes to paying for college. Remember, every dollar available from savings is a dollar that doesn’t have to be borrowed and repaid later with interest!
Ways to Save for College
Section 529 Plans
Section 529 plans are tax-advantaged investment plans available through most states to help students and families prepare for college expenses. Maine residents may qualify for matching grants from Maine’s Section 529 plan to help them along with their college investing. Learn more about Maine’s Section 529 plan, the NextGen College Investing Plan®.
Traditional and Roth IRA (Individual Retirement Account) Withdrawals
Early IRA withdrawals, before age 59 ½, are allowed without the 10% early withdrawal penalty if funds are used for qualified education expenses. These withdrawals may still be taxed as ordinary income.