The recently enacted CARES Act provides relief for Federal student loan borrowers. It is good news for those enrolled in an income-driven repayment plan or in the Public Service Loan Forgiveness Program. The Act suspends most Federal student loan payments and interest accrual between March 13 and September 30, 2020. Principal balances are also frozen […]
The District of Columbia recently revamped its 529 College Savings Plan. The new plan offers lower cost investment options than the old plan’s offerings. DC also eliminated the high-cost advisor sold option! These changes are a welcome improvement. DC, however, missed an opportunity for its 529 plan to become the low-cost leader. And I don’t […]
A new DC 529 Plan will be coming in 2017. The new DC 529 Plan provider, Ascensus, will hopefully eliminate the high-cost elements in the existing plan. 529 plans are a great way to save for college. Nearly all states have 529 plans. A 529 plan allows your contributions to grow tax free. You don’t pay […]
I wrote recently to DC Mayor Muriel Bowers asking her to reform the DC 529 Plan (DC Plan). The DC 529 College Savings Plan contains high-cost investment choices, big commissions that can unknowingly harm consumers, and unnecessary participation fees. Earnings in a 529 account are tax-free if they are used for qualified education expenses such as […]
Below is the text of a letter I sent to Washington, DC Mayor Muriel Bowser to reform the DC College Savings Plan to better serve the interest of DC families and college students. On August 1st, the DC CFO responded!! Dear Mayor Bowser: Your Administration would do college students and families saving for college a […]
Direct Student Loan borrowers now have more flexibility to repay, and ultimately to have forgiven, their student loans. The Obama Administration recently finalized a new income-driven student loan repayment plan, called Revised Pay As You Earn (REPAYE). The rules allow all Direct Student Loan borrowers to be eligible for the repayment plan, provide an upper […]
Maryland offers both a prepaid 529 plan as well as an investment fund plan that, when used together, can diversify your college savings. In the Maryland Prepaid College Trust, you purchase semesters of tuition at today’s prices. No matter how much the cost of tuition increases, you have paid the tuition for the number of […]
Virginia is one of many states that offers both a prepaid 529 plan as well as an investment fund plan. In the PrePaid Plan, you purchase semesters of tuition at Virginia Public institutions at today’s prices. No matter how much the cost of tuition increases in at these in-state colleges in the future, you have […]
I was asked recently whether it wise to contribute more than the state tax deduction amount of $4,000 to the Virginia 529 College Savings Plan. Virginia maintains two distinct plans: The InVest Plan, which offers stock and bond mutual funds. The investment earnings are not taxed as long as you use them for qualified higher […]
Newly proposed student loan repayment rules could help more borrowers better manage their student loans. The Obama Administration has proposed to offer a new income-driven student loan repayment plan, called Revised Pay As You Earn (REPAYE). The proposed rules seek to allow more borrowers to be eligible for the repayment plan, provide an upper limit […]
