College use 529 plans to reduce college costs

The Wall Street Journal has an interesting article about how 529 plans can be used to reduce the cost of some colleges. 529 plans, for those unfamiliar with them, are savings plans which provide certain benefits for families saving for the cost of higher education. For more information on 529 plans go to savingforcollege.

With the high cost of college most families are looking for ways to reduce their out of pocket costs. Most of you know that I am not a huge fan of outside scholarships for most students since the real benefit of such scholarships often goes to the colleges and not the students. However, if one of the college in which you are interested participates in one of these 529 plan reductions, that can be a real savings. Always ask the colleges financial aid office if they participate in such a program. It may save you some money.