Can 529 Funds Be Used to Pay for Test Prep?
529 plans, tax advantaged investment vehicles designed to make it easier to save and pay for college or alternate post-secondary training, have become a foundational element of college savings strategies. These plans, otherwise known as qualified tuition programs, have become somewhat popular with families all too aware of the steadily rising cost of a college education. Over the years, a number of clients have come to us requesting documentation so they could use 529 college savings plan funds to pay for their SAT & ACT prep. And for as long as 529 plans have been around, the answer has been that distributions from these plans could NOT be applied to tutoring or test prep. As of July 2025, that has changed. Alterations to the federal tax code have expanded the definition of qualified education expenses for K-12 beyond college tuition, room, and board to also include books, materials, testing fees,…
Conquer Mounting College Costs with Smart Financial Moves
Stepping onto a college campus, the potential for knowledge and growth can feel inspiring but is often clouded by the weight of student debt. Many students, however, find ways to focus on learning and discovery without constant financial strain. With careful planning and smart decisions, it’s possible to pursue an education that aligns with both academic and financial goals. This approach empowers students to shape a future marked by personal and professional growth, free from overwhelming debt. Uncover Scholarship Gold Close to Home One effective way to reduce college costs is by applying for local scholarships. These scholarships, often provided by community organizations, offer a fantastic opportunity due to their smaller applicant pools compared to national scholarships. With a focus on state-specific scholarships, you can find opportunities that align with your academic goals and career aspirations. Engaging with your community and consulting your school’s financial aid office can uncover hidden…
Unlocking the Secrets to a Debt-Free Degree: Wise Choices Ahead
The pursuit of higher education is a noble endeavor, yet it often comes with the heavy burden of financial debt. However, with strategic planning and smart decisions, it’s entirely possible to minimize or even bypass the need for student loans. This guest article from Laura Pearson, co-creator of Edutude. delves into a series of actionable strategies designed to empower students to manage their finances effectively. Through Edutude, Laura strives to find unique, creative ways for parents and educators to encourage students to be challenged, motivated and excited by learning. In addition to her work with Edutude, Pearson is an advocate for children’s rights and education. Leveraging Academic Resources for Success One of the most underutilized treasures of higher education is the plethora of academic support services available to students. Universities offer various resources, including free tutoring and workshops, aimed at enhancing student performance. By taking advantage of these resources, students…
Getting-into-College Fair in Perinton This Week!
Have you even been to a college fair? Basically, reps for a bewildering array colleges, universities and military services flood malls or other large venues so that students and families can gather information, brochures, and lots of first impressions. Is that all there is to the admissions process? Obviously, determining where you want to go is important. Equally essential is learning how to get in. The first Greater Rochester Getting-into-College Fair at the Pittsford Library in October was a great success, but we expect the next one to be even better. How is this different from a conventional college fair? Instead of campus reps, you’ll meet amazing local experts with answers about every aspect of college admissions. Perinton Community Center — Thursday, November 3, 5-8pm 1350 Turk Hill Rd, Fairport, NY 14450 The Getting-into-College Fair is free, and no registration is required. Come for guidance and insights for high school…
Evaluating College ROI
College is definitely, at least in most cases, a pricy proposition. Attending community college or earning substantial scholarship awards can defray the financial costs of college, but higher education demands a considerable time commitment as well. Considering just how much college students (and their families) invest in higher education, questions about the return on that investment only make sense. Any attempt to evaluate potential ROI from attending college requires the juggling of a variety of complex terms along with a stomach for uncertainty. College major alone dramatically influences potential earnings after graduation. What other factors should smart shoppers consider? Net Price Net price is the average cost of attendance, which includes tuition, fees, books and supplies, and living expenses, minus aid received from all sources. Net Present Value (NPV) The net present value is how much a sum of money in the future is valued today. This metric includes costs,…
Increases in Cost of College Over the Last 10 Years
That old adage about having to spend money to make money has never been more true than in reference to college. Among the many clear benefits of a college education are measurably improved average lifetime earnings an a higher likelihood of a satisfying career. But those benefits come at a cost, one that seems to practically double every year. How much has the cost of college really increased over the last ten years? Unsurprisingly, our friends at the College Board happen to track this exact information. Their comprehensive analysis of Tuition and Fees and Room and Board over Time provides exactly the information we are looking for, especially after some additional calculations. Private Non-Profit Four Year Schools Average tuition for private non-profit four year schools in 2021-22 was $38,070. Average tuition for private non-profit four year schools in 2011-12 was $33,320. That increase of $4,750 over a decade represents a…