Funding College the Smart Way
Now is always the right time to learn about college preparation.
Explore a Variety of College Savings Choices
Discover the benefits of 529 Plans*, Coverdell ESA*, and more for your child's education:
A Comprehensive Comparison: Community Colleges vs. Universities
Unveil the actual costs of two-year and four-year institutions and empower your decision-making.
| Type Of School | Residence | Details | Tuition & Fees | With Room & Board |
|---|---|---|---|---|
| Public 4 Year | In-State | Funded by local and state governments, offering a lower tuition rate for in-state residents. Typically a four-year school. | $11,260 | $24,030 |
| Public 4 Year | Out-Of-State | Students from out of state typically pay more because state schools are funded by tax dollars of residents in that state. | $29,150 | $41,920 |
| Public 2 Year | In-State | Typically in-district community colleges that offer associates degrees or certificates. They can often be used as a stepping stone to attend a four-year school. | $3,990 | $13,960 |
| Private 4 Year | N/A | Not funded by local or state governments. They rely mainly on tuition, fees, and private funding. | $41,540 | $56,190 |
Source: research.collegeboard.org
College Savings Insights
We recognize that higher education can help equip students for success in today's competitive job market. Delve into these valuable resources as you and your future graduate embark on your journey.
Look to the Future
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*A 529 plan is a college savings plan that allows individuals to save for college on a tax-advantaged basis. The state tax treatment of 529 plans is only one factor to consider before committing to a savings plan. Also, consider any fees and expenses associated with a particular plan. Whether or not a state tax deduction is available will depend on your state of residence. State tax laws and treatment may vary. State tax laws may be different from federal tax laws. Earnings on nonqualified distributions will be subject to income tax and a 10% federal penalty tax.
Contributions to a Coverdell ESA aren’t tax deductible, but the account accumulates on a tax-deferred basis. Withdrawals are not taxed, as they are used for qualified education expenses. Contributions may be made until the account beneficiary turns 18. The money must be withdrawn when the beneficiary turns 30, or taxes and penalties may occur.
Roth IRA contributions are phased out for taxpayers with adjusted gross incomes (AGIs) above a certain amount. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a 5-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawal can also be taken under certain other circumstances, such as the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.