Education Planning

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.



Evaluating Your Situation

Budgeting & Debt Management

Goals & Plans

Insurance & Disability Planning

Investment Planning

Education Planning

Retirement Planning

Estate Planning


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Montgomery GI Bill



Planning for Your Child’s Education



Personal Investing


Prepaid Tuition Plans




College Options through Life Insurance


Educational Tax Credits


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or all of the money withdrawn from your IRA.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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