In the United States, higher education has become a necessary step to succeeding in the workforce. It’s also become a more expensive step. Tuition for in-state public universities rose 237 percent since 1997 as the job market now demands a university-level education to even be considered for a position. Many young people don’t think about how they will pay for college and instead rely on expensive private loans saddling them with piling debt.
At Vantage West, we seek to guide you to a financial future full of prosperity and opportunity. The first step to getting there is a secure plan. That’s why we offer a host of financial products that help students and their families start saving early for education costs. Read on to see how you can finance your educational journey.
Individual Development Accounts (IDA)
Vantage West partners with the nonprofit Earn to Learn program, which helps low-income Arizona residents save for college. Qualified students enrolled in Earn to Learn can open an Individual Development Account (IDA). With an IDA, you set a monthly savings goal with a financial counselor and start saving. Meanwhile, Earn to Learn applies an 8X match to your savings. These funds are then applied to your chosen college or university’s tuition.
IDAs can only be opened by students who have applied to and been enrolled in the Earn to Learn program (and meet the requirements).
Coverdell Education Savings Account (ESA)
A high-yield account set up for the purpose of saving for higher learning expenses for a designated beneficiary under the age of 18:
- Minimum opening deposit is $50
- No maturity date or limits on transaction frequency
- Contribute up to $2,000 per year
- Must be set up with the legal guardian of a minor
- No minimum investment periods, like term certificates
- Withdrawals are tax free when used for educational expenses*
- Funds can be transferred at any time to a qualifying family member under 30 years old
*Consult your tax advisor about Coverdell Education Savings Account eligibility, contributions, qualifications, and early withdrawal penalties. Maintenance fees may apply.
Subject to approval. Certain restrictions may apply. Early withdrawals, fees,and other conditions could reduce the earnings on the account. Credit union membership required. Accounts federally insured to at least $250,000 by the National Credit Union Administration.