- 1). Check out online resources that provide information on scholarship and grants. Go to the Fast Web site and register, or have your child register. Use this site and others to get information of scholarships, alternate funding and internships.
- 2). You may want to consider skipping a personal exemption on your income taxes that can be diverted for use to help pay school and living costs for your child.
- 3). Open a 529 savings plan. This is an actual educational savings plan that does not have a cap on it. You should open a 529 savings plan even if your young adult child is already in college.
- 4). Talk to your bank's financial officer about opening a money market fund or bond fund. She will not only be able to advise you on which ones will give you the best return for your money, but inform you if you can withdraw money from some funds and pay little or no taxes on the money if you prove that it is being used for college tuition, books and living expenses.
- 5). Find out if you can claim a partial tax credit for savings and loans if you spent the money on your child's tuition and fees.
- 6). Keep receipts for the cost of your college student's housing, tuition, books and any other college fees to help you justify your expenditures and help you at tax time. This way, everyone is protected and able to take advantage of all the available options for helping cover college expenses.
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