The Complexity of Payroll Withholding for Student Loan Payments

Senator Lamar Alexander has proposed automatically deducting student loan payments from borrowers’ paychecks. This is an elegant idea that would save the federal government about $1 billion a year in collection costs. Payroll withholding of student loan payments isn’t as simple as it might seem initially, but the problems aren’t insurmountable.

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What you can't pay for with a 529 plan

529 plans are tax-advantaged accounts designed to save for college, but the tax benefits are only available when the funds are used to pay for qualified expenses. Distributions used to pay for some college expenses are considered non-qualified and may be subject to income tax and a 10 percent penalty on the earnings portion.

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How Do Student Loans Work?

If you need money for college, you might be considering a student loan. But before you apply for one, it’s important to understand how they work.

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My Child Turned 18. Can I Still Claim a 529 State Tax Benefit?

Families who contribute to a 529 plan may be eligible for a state income tax deduction or credit, depending on where they live. A state income tax benefit may be claimed each year contributions are made, including before, during and after the beneficiary attends college.

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More Americans Give the Gift of College, Setting 529 Plan Records

Many 529 plans reported double-digit increases in gift contributions during the 2018 holiday season. This could be a sign that grandparents and other loved ones are becoming more comfortable with giving the gift of college. Parents may also be taking advantage of online tools and registries offered by 529 plans that make asking for gifts and receiving gifts easier.

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