“I am not sure whether or not I will not get financial aid”
You will be amazed to know that students who belong to the high income groups have managed to get a huge discount on their course fee. You must avoid putting a large amount of money in your child’s name, because you never know when the rules concerning financial aid might change. We recommend consulting a financial expert before coming to a conclusion.
The trust does not fit with the financial aid. In other words- if, you are looking to save for your child’s education, then choosing a trust is not a good option. Trust is generally perceived as a rich kid’s fund, that is offered to the financial officers of the college.
State-sponsored plans offer prepaid plans that are available in few states. While, some states offer tuition savings plans as well.
It entirely depends on the eligibility and preference. It varies from person to person, based on his/her requirements.
Investments done in state sponsored aid plans give you tax advantage, but an OUT-OF-STATE investment might not guarantee you tax benefits.
Plans similar to the 529 are more expensive, and the financial advisors may not explain the benefits of the state sponsored plans.
Yes, many states implement their own penalties with reference to the rules set by liberal federal transfer rules.