METAIRIE, La. (WGNO) — Paul Jouet, a successful accountant and father to three daughters, hopes TOPS will continue to assist in putting his three children through college, but with the future of TOPS unknown, he has advice for parents and students.
“I have three kids right now 7, 5, and 2. I hope that TOPS is around when they attend college but if not I’ve started preparing myself. I have 529 plans for each of my children,” remarked Jouet.
The 529 plan was created by the IRS in 1996. It’s a state sponsored plan where you contribute money to a fund, and that fund grows tax-free, as long as you use that money to pay for educations expenses.
Anyone can contribute to the fund at any amount.
If you or your child is already in college and it is too late to start a 529, Jouet is encouraging you to think of other ways to pay for tuition, such as loans. But do your research on the best option for you.
“There’s a subsidized and nonsubsidized loan; the main difference is the department of education backs the subsidized loans. They determine the eligibility if you need it you get it. It’s interest-free until six months after you graduate.
“The second loan is not subsidized, and the school determines how much you need, and then you can borrow the money. But the difference is you’re paying interest immediately,” said Jouet.
Jouet suggests that loans and 529 plans are not the only way to get the help you need, and suggests looking into scholarships that may be unused
“Find out if they have any scholarships that are being offered at your university that are not being used, maybe some fraternal organizations. You know it doesn’t hurt to ask!”
