National Guard Family Program
Soldier with child riding piggyback Introduction to Personal Finance
An Overview for State Family Program Directors, Wing Family Program Coordinators, and Families.
 

Introduction

Evaluating Your Situation

Budgeting & Debt Management

Goals & Plans

Insurance & Disability Planning

Investment Planning

Education Planning

Retirement Planning

Estate Planning

 

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EDUCATION PLANNING

 

6.

Montgomery GI Bill

 

6.1

Planning for Your Child's Education

  

6.1.1

Personal Investing

6.1.2

Prepaid Tuition Plans

6.1.3

Loans

6.1.4

College Options through Life Insurance

6.1.5

Educational Tax Credits

6.2

Learning Check

 

6.1.3 Loans

What if you haven't been investing regularly for your child's education or your investment plan is falling short? You may need to borrow. A variety of government-subsidized and unsubsidized education loans are available to students and parents.

Interest paid on qualifying student loans is tax deductible. Another strategy used by many parents is a home equity loan. With a home equity loan, the interest you pay on the loan also may be tax deductible.

You also might consider a loan from your employer-sponsored retirement savings plan. Or you may be able to take penalty-free withdrawals from your individual retirement account to pay for qualified higher education expenses incurred by you, your spouse, your children, or your grandchildren.

Be aware, though, that you may have to pay federal income tax on some or all of the money withdrawn from your IRA. And use caution when borrowing or withdrawing money from any retirement account. You don't want to short-change your retirement.

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