Brief The Effect of Alternative Savings Approaches on College Aid
Elaine Maag
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To pay for college, many low- and moderate-income students and their families rely on financial aid and savings. But how students and families saveand in whose nameaffects both the tax consequences and the impact of savings on financial aid. Not saving in a tax-preferred account can raise the out-of-pocket costs of college by thousands of dollars. Alternately, saving for college can result in tax penalties if families do not use tax-preferred savings for education.
Research Areas Education Families Social safety net Taxes and budgets Children and youth
Tags Low-Income Home Energy Assistance Program (LIHEAP) Economic well-being K-12 education Secondary education Federal budget and economy Financial stability
Policy Centers Center on Labor, Human Services, and Population