Getting the Most Out of Financial Aid for College

It's that time of year again when high-school grads head off to college, and most college students head back to school. This means finding money for tuition, room and board, books, and spending money. College can be expensive, so finding the funds to pay for it all can be quite a task. Luckily, for many people, there are various sources of financial aid that can assist in making this a reality.

There are a various forms of financial aid available, from federal grants and scholarships, private loans, and federal student loans. These sources of funds can ease the burden on both parents and students. Another alternative which may have attractive tax benefits is the Section 529 Plan. These plans allow you to invest money tax-deferred and realize the gains tax-free if used for qualified expenses. Not only that, but many states even provide tax credits for making contributions into these plans. And don't forget, even many U.S. savings bonds are eligible for tax breaks when used for college expenses. So, make sure you check out all of the options available to you.