Since I just finished paying off my student loans I wanted to put together a financial plan for going back to school to try to minimize or eliminate the need to take out any more loans.
First, work gives me $2000 per year for school which is a big help. On top of that I’m putting $200 a month into a 529 plan. Normally you may only think that a 529 plan is good for saving for your child’s education but it can also be valuable for yourself.
The 529 plan allows me to grow my investments and keep them federal and state tax-free on withdrawal for education expenses. Also, I of course used the Ohio 529 plan which besides being one of the top ranked in the country also gives me up to a $2000 state tax deduction for contributions to the account per year.
Even with work and the systematic savings into the 529 plan I won’t be able to save everything I need to cover college tuition costs, but it will go a long way and hopefully keep me from needing loans.
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