Have you considered savings and financial aid options for trade school? Though trade school is already an option many consider due to the ability to complete a program in 2 years or less, some may not even know the financial aid options available to pay for it. For trade school programs offered by Title IV-eligible colleges, a 529 plan can be a worthwhile investment.
Who can start a 529 plan and/or be a beneficiary?
Whether you are a parent or guardian saving for a beneficiary or someone age 18 or older looking to open your own account, you can open a 529 plan account. Additionally, you must be a U.S. resident with a legal U.S. mailing address and have a Social Security number or Tax ID. If you’re opening your own account as an adult, you will want to choose a plan other than the standard age-based plans, since those operate under the assumption that you’re saving for a minor within the 18-year time frame.
Types of 529 Plans
There are two basic types of 529 plans: a prepaid tuition plan or a savings plan. A prepaid tuition plan involves paying for a set tuition price either in monthly installments or in one lump sum payment. This plan is only offered at specific colleges or universities. An education savings plan involves making contributions to the plan in the form of mutual funds and can cover more expenses than a prepaid tuition plan. It is also a more personalized option, since you can choose how you want to invest.
There are lots more factors to consider involving a 529 plan, but it’s definitely an option worth considering if you’re looking to find ways to pay for trade school. Explore the resources below for more information.