The negative impact of student loan debt in the U.S. has led to Congress establishing student loan forgiveness policy. Vice President of Retirement and College at Fidelity Investments, Rita Assaf, joined Inside South Florida to share tips to help parents save for their children’s college education.
“79% of parents agree that student debt is a big motivator for saving. Nearly a third of the parents surveyed have their own student debt,” says Assaf. “They admitted that they haven't even started saving for their child's education because they're still paying down their debt.”
A 529 College Savings plan can provide advantages that can help parents save for their kids’ college expenses.
“Many people don't realize that 529 have tax advantages. The money actually comes out tax-free when used on education expenses,” says Assaf. “The 529 plan is actually has a minimal impact on a child's ability to qualify for financial aid, and you can actually use the funds to repay student loans up to $10,000.”
For more information, visit Fidelity.com/College
This Inside South Florida segment is paid for by Fidelity.