1 00:00:04,400 --> 00:00:07,720 Speaker 1: Finishing high school is a huge moment in a person's life. 2 00:00:07,840 --> 00:00:10,280 Speaker 1: For some, it marks the end of childhood and the 3 00:00:10,320 --> 00:00:14,000 Speaker 1: first step into adulthood. And for some it means sweet 4 00:00:14,120 --> 00:00:16,920 Speaker 1: sweet freedom from the doul drums of a classroom setting. 5 00:00:17,160 --> 00:00:20,120 Speaker 1: But for many others, it's the closing of one academic 6 00:00:20,200 --> 00:00:23,960 Speaker 1: chapter and the opening of another. I'm talking about college. 7 00:00:25,000 --> 00:00:28,320 Speaker 1: In twenty twenty one, two point seven million people completed 8 00:00:28,400 --> 00:00:31,200 Speaker 1: high school. That's according to data from the National Center 9 00:00:31,360 --> 00:00:35,040 Speaker 1: for Education Statistics. Out of those high school graduates, roughly 10 00:00:35,120 --> 00:00:38,280 Speaker 1: sixty two percent of those students had enrolled in college 11 00:00:38,320 --> 00:00:41,400 Speaker 1: for the fall of twenty twenty one. That's roughly one 12 00:00:41,440 --> 00:00:44,159 Speaker 1: point seven million people who were new students at a 13 00:00:44,200 --> 00:00:48,199 Speaker 1: two or four year academic institution. College is such an 14 00:00:48,240 --> 00:00:51,640 Speaker 1: exciting time. It's where we get the chance to reinvent ourselves, 15 00:00:51,680 --> 00:00:54,760 Speaker 1: and for many it's the first time we can realistically 16 00:00:54,800 --> 00:00:56,600 Speaker 1: start thinking about what we want to be when we 17 00:00:56,640 --> 00:00:59,480 Speaker 1: grow up. We get the chance to specify our interests 18 00:00:59,520 --> 00:01:02,160 Speaker 1: and zero in on what we want to learn and know. 19 00:01:02,800 --> 00:01:05,600 Speaker 1: But here in the US, that journey can also be 20 00:01:06,360 --> 00:01:11,520 Speaker 1: very expensive. Based on data collected by US News and 21 00:01:11,560 --> 00:01:14,679 Speaker 1: World Report in twenty twenty two, in the last twenty years, 22 00:01:14,880 --> 00:01:18,120 Speaker 1: tuition and fees increased by one hundred and thirty four 23 00:01:18,160 --> 00:01:21,959 Speaker 1: percent at private universities, out of state tuition and fees 24 00:01:22,000 --> 00:01:25,560 Speaker 1: at public universities rows one hundred and forty one percent, 25 00:01:25,760 --> 00:01:28,520 Speaker 1: and in state tuition and fees at public universities went 26 00:01:28,600 --> 00:01:32,320 Speaker 1: up by one hundred seventy five percent. The price of 27 00:01:32,400 --> 00:01:35,280 Speaker 1: higher education and how one pays for it has been 28 00:01:35,280 --> 00:01:38,520 Speaker 1: a hotly debated topic in the US for many years now, 29 00:01:38,600 --> 00:01:42,319 Speaker 1: but until major legislation passes to change our current system, 30 00:01:42,400 --> 00:01:44,920 Speaker 1: students and parents are on their own to figure out 31 00:01:44,959 --> 00:01:47,840 Speaker 1: the best way to save and pay for college. While 32 00:01:47,840 --> 00:01:49,880 Speaker 1: there's always the option of taking out a loan or 33 00:01:49,960 --> 00:01:52,600 Speaker 1: applying for grants or scholarships, there are also a number 34 00:01:52,640 --> 00:01:55,639 Speaker 1: of savings plans designated to help people grow their money 35 00:01:55,720 --> 00:01:59,200 Speaker 1: specifically for the purpose of paying for higher education. But 36 00:01:59,320 --> 00:02:02,720 Speaker 1: what are these and what benefits do they offer? Plus, 37 00:02:02,800 --> 00:02:04,920 Speaker 1: can someone please tell me the difference between a grant 38 00:02:04,960 --> 00:02:13,160 Speaker 1: and a scholarship? Start taking notes because this is we Stuff. Hello, 39 00:02:13,280 --> 00:02:16,160 Speaker 1: and welcome to another episode of Grown Up Stuff How 40 00:02:16,160 --> 00:02:19,520 Speaker 1: to Adult the podcast will regraduate from curfews and after 41 00:02:19,560 --> 00:02:23,120 Speaker 1: school jobs and enroll in the school of credit scores 42 00:02:23,160 --> 00:02:26,000 Speaker 1: and weddings. As always, I am Molly, one of your 43 00:02:26,000 --> 00:02:28,280 Speaker 1: hosts of the show, and I am joined by my 44 00:02:28,440 --> 00:02:31,880 Speaker 1: affable and very talented co host Matt. Today on the show, 45 00:02:31,960 --> 00:02:35,040 Speaker 1: we're working with our partners at Edvest in Wisconsin and 46 00:02:35,160 --> 00:02:38,520 Speaker 1: the Michigan Education Savings Program to dig into saving and 47 00:02:38,560 --> 00:02:39,600 Speaker 1: paying for college. 48 00:02:40,040 --> 00:02:40,760 Speaker 2: Now, Matt, you. 49 00:02:40,680 --> 00:02:44,720 Speaker 1: And I have since finished college and am now working adults. 50 00:02:44,840 --> 00:02:47,040 Speaker 1: But you are married, and I know that you and 51 00:02:47,080 --> 00:02:48,880 Speaker 1: I have talked about you and your wife at some 52 00:02:49,000 --> 00:02:52,160 Speaker 1: point starting a family. Do any of these stats around 53 00:02:52,280 --> 00:02:54,919 Speaker 1: the cost of college scare you? Like, do you have 54 00:02:55,400 --> 00:02:57,760 Speaker 1: a plan for when those future children might say to you, 55 00:02:58,360 --> 00:03:02,480 Speaker 1: Papa Mets, I have yees and that dream is to 56 00:03:02,520 --> 00:03:06,160 Speaker 1: go to college and get a liberal arts degree. 57 00:03:06,320 --> 00:03:09,320 Speaker 2: Okay, so, first of all, we have talked about having children, 58 00:03:09,560 --> 00:03:12,520 Speaker 2: but I am nowhere near ready to hear Papa Mat, 59 00:03:12,600 --> 00:03:15,480 Speaker 2: So let's never ever say that again. I have not 60 00:03:15,760 --> 00:03:18,880 Speaker 2: started saving for any future family, but it feels like 61 00:03:19,000 --> 00:03:21,160 Speaker 2: we gotta, right. I mean, when you look at a 62 00:03:21,320 --> 00:03:23,840 Speaker 2: cost of college, I mean in state tuition, out of 63 00:03:23,840 --> 00:03:26,720 Speaker 2: state tuition, like in private universities, Like somebody, these private 64 00:03:26,760 --> 00:03:30,359 Speaker 2: universities are like sixty sixty five thousand dollars a year ago. 65 00:03:30,400 --> 00:03:32,520 Speaker 2: That's on the super high end of the spectrum. But 66 00:03:32,800 --> 00:03:35,120 Speaker 2: it is really great to know that there are tax 67 00:03:35,160 --> 00:03:39,160 Speaker 2: advantage savings accounts that you can use to invest in 68 00:03:39,240 --> 00:03:42,640 Speaker 2: higher education. Think about your paycheck and then think about 69 00:03:42,640 --> 00:03:45,640 Speaker 2: it before taxes are taken out. Sometimes it's like twice 70 00:03:45,680 --> 00:03:46,680 Speaker 2: as high, right. 71 00:03:46,840 --> 00:03:48,560 Speaker 1: Like, oh yeah, it makes me cry sometimes. 72 00:03:48,640 --> 00:03:52,120 Speaker 2: Imagine you can keep all that money and use it 73 00:03:52,160 --> 00:03:55,360 Speaker 2: to invest in something so that that larger paycheck is 74 00:03:55,360 --> 00:03:57,720 Speaker 2: actually going and growing and being invested, and then when 75 00:03:57,720 --> 00:03:59,320 Speaker 2: you take it out, you don't have to pay any 76 00:03:59,320 --> 00:04:02,640 Speaker 2: tax on any income the investments have earned. So it's like, 77 00:04:02,800 --> 00:04:04,640 Speaker 2: I love that. When I put it in perspective that way, 78 00:04:04,640 --> 00:04:06,760 Speaker 2: it makes so much more sense to me that like vehicles, 79 00:04:07,400 --> 00:04:09,360 Speaker 2: like you know what we're going to learn about today 80 00:04:10,080 --> 00:04:11,120 Speaker 2: are huge. 81 00:04:11,520 --> 00:04:13,920 Speaker 1: Yeah, I also want a family someday, but you know, 82 00:04:13,960 --> 00:04:16,480 Speaker 1: I also want to be able to help my kids 83 00:04:16,480 --> 00:04:19,279 Speaker 1: the same way that my parents were able to help me. 84 00:04:19,600 --> 00:04:22,279 Speaker 1: And I'd be lying if I said that like college 85 00:04:22,360 --> 00:04:26,160 Speaker 1: was not a major obstacle or concern more accurately when 86 00:04:26,200 --> 00:04:27,800 Speaker 1: it comes to kind of this plan of being able 87 00:04:27,800 --> 00:04:29,440 Speaker 1: to help them the same way that I was helped. 88 00:04:29,920 --> 00:04:30,120 Speaker 3: You know. 89 00:04:30,240 --> 00:04:35,920 Speaker 1: I went to a private university years ago, and I 90 00:04:35,960 --> 00:04:38,680 Speaker 1: was lucky enough that I had a few scholarships under 91 00:04:38,680 --> 00:04:41,120 Speaker 1: my belt when I went, but I remember being shocked 92 00:04:41,720 --> 00:04:44,039 Speaker 1: at how expensive it was then. So I am really 93 00:04:44,080 --> 00:04:46,640 Speaker 1: looking forward to diving into the ways that we can 94 00:04:46,720 --> 00:04:49,320 Speaker 1: manage this cost with our guests today. 95 00:04:49,240 --> 00:04:53,239 Speaker 2: Me too, and to help us explore what our options 96 00:04:53,240 --> 00:04:56,479 Speaker 2: are when it comes to financing higher education. We're joined 97 00:04:56,480 --> 00:04:59,000 Speaker 2: by not one, but two experts today. 98 00:04:59,320 --> 00:05:01,359 Speaker 4: Hi, Lott, I'm. 99 00:05:01,200 --> 00:05:04,520 Speaker 5: The Bureau Director for the Office of post Secondary Financial 100 00:05:04,560 --> 00:05:07,160 Speaker 5: Planning within the Michigan Department of Treasury. 101 00:05:07,640 --> 00:05:11,440 Speaker 3: My name is Jackie James, and I am the senior 102 00:05:11,560 --> 00:05:15,400 Speaker 3: marketing manager of the ed VEST five to nine College 103 00:05:15,400 --> 00:05:17,120 Speaker 3: Savings Plan in Wisconsin. 104 00:05:17,839 --> 00:05:20,799 Speaker 1: As the executive director, Robin works closely with the Chief 105 00:05:20,880 --> 00:05:23,560 Speaker 1: Deputy State Treasurer and the State Treasurer for the State 106 00:05:23,560 --> 00:05:28,520 Speaker 1: of Michigan on financial wellness and other higher education related issues. 107 00:05:28,279 --> 00:05:31,440 Speaker 2: And Jackie works closely with the State of Wisconsin on EDVEST, 108 00:05:31,520 --> 00:05:34,000 Speaker 2: which is the state's only direct sold five twenty nine 109 00:05:34,040 --> 00:05:37,000 Speaker 2: college savings plan that offers tax benefits when used to 110 00:05:37,000 --> 00:05:40,000 Speaker 2: pay for education expenses for designated beneficiaries. 111 00:05:41,600 --> 00:05:44,159 Speaker 1: Robin and Jackie, thank you so much for being here today. 112 00:05:44,640 --> 00:05:46,880 Speaker 1: I want to start at the very beginning, and I 113 00:05:46,920 --> 00:05:49,800 Speaker 1: think I might know the answer to this. But when 114 00:05:49,880 --> 00:05:52,080 Speaker 1: is the best time to start thinking about saving for 115 00:05:52,279 --> 00:05:56,680 Speaker 1: higher education from different perspectives, from the parents, perspective, from 116 00:05:56,760 --> 00:06:00,560 Speaker 1: adults looking to continue their education, and if you're a 117 00:06:00,640 --> 00:06:03,040 Speaker 1: high school student looking at college. 118 00:06:03,400 --> 00:06:06,719 Speaker 3: So this is not going to come to any surprise, 119 00:06:06,880 --> 00:06:09,960 Speaker 3: I would say as early as possible. The reason is 120 00:06:10,120 --> 00:06:14,960 Speaker 3: is because of compound earnings. The sooner you get your 121 00:06:15,000 --> 00:06:18,640 Speaker 3: money into an investment vehicle like a five to nine plan, 122 00:06:18,920 --> 00:06:21,600 Speaker 3: the sooner those funds can start working for you in 123 00:06:21,640 --> 00:06:25,880 Speaker 3: the form of potential earnings and compound earnings. Over time, 124 00:06:26,279 --> 00:06:30,120 Speaker 3: your earnings are invested back into your five too nine account, 125 00:06:30,360 --> 00:06:33,640 Speaker 3: and so the earnings keep building on your principle or 126 00:06:33,720 --> 00:06:35,159 Speaker 3: the original amount you invest. 127 00:06:36,000 --> 00:06:39,760 Speaker 5: Absolutely, the earlier you start, even from the five to 128 00:06:39,920 --> 00:06:44,120 Speaker 5: nine prepaid perspective, the sooner you can lock in at 129 00:06:44,160 --> 00:06:47,240 Speaker 5: whatever rate is in existence at that time or in 130 00:06:47,600 --> 00:06:50,960 Speaker 5: play at that time, so that you're still going to 131 00:06:51,040 --> 00:06:53,200 Speaker 5: lock in at a lower rate than you would if 132 00:06:53,200 --> 00:06:55,359 Speaker 5: you were going to actually be ready to attend college. 133 00:06:55,440 --> 00:06:57,919 Speaker 5: So absolutely, I always say as soon as that child 134 00:06:57,960 --> 00:07:01,560 Speaker 5: is born. From a parent perspective art saving, if you're 135 00:07:01,600 --> 00:07:05,120 Speaker 5: a student going to college, you're a little bit late 136 00:07:05,160 --> 00:07:07,760 Speaker 5: to the game, but if you can save anything, tuition 137 00:07:07,920 --> 00:07:10,680 Speaker 5: still goals up while you're in college, and so your 138 00:07:10,720 --> 00:07:12,560 Speaker 5: senior year of college is going to be your most 139 00:07:12,560 --> 00:07:15,880 Speaker 5: expensive year. So even if you had to start saving late, 140 00:07:15,920 --> 00:07:18,040 Speaker 5: it's better to start saving late than never. 141 00:07:18,840 --> 00:07:21,400 Speaker 2: It's really funny the more we talk about stuff on 142 00:07:21,480 --> 00:07:25,600 Speaker 2: grown up stuff, it's just like budget, budget, budget, budget. 143 00:07:25,840 --> 00:07:29,480 Speaker 2: So with budget in mind, is there like a recommended 144 00:07:29,600 --> 00:07:31,520 Speaker 2: amount to save every month? 145 00:07:32,120 --> 00:07:34,640 Speaker 3: That's a really good question, but it kind of depends 146 00:07:34,680 --> 00:07:35,760 Speaker 3: on what your goal is. 147 00:07:36,240 --> 00:07:39,200 Speaker 5: And your budget. So your first do need you need 148 00:07:39,240 --> 00:07:41,640 Speaker 5: to identify those goals, but then you have to realistically 149 00:07:41,680 --> 00:07:43,600 Speaker 5: look at what can you afford to save so that 150 00:07:43,640 --> 00:07:45,560 Speaker 5: you can still put food on your table and meet 151 00:07:45,600 --> 00:07:47,080 Speaker 5: your other expenses. 152 00:07:47,320 --> 00:07:50,680 Speaker 3: Something I would recommend people doing. There are tons of 153 00:07:50,760 --> 00:07:54,600 Speaker 3: online calculators that you can use to project the amount 154 00:07:54,800 --> 00:07:58,320 Speaker 3: that someone needs to save. So you know, okay, I 155 00:07:58,400 --> 00:08:01,600 Speaker 3: need X amount of dollars tuition at a four year 156 00:08:01,720 --> 00:08:05,560 Speaker 3: college in eighteen years, or I need X amount of 157 00:08:05,640 --> 00:08:10,160 Speaker 3: dollars for housing expenses, and that sort of thing in 158 00:08:10,280 --> 00:08:15,840 Speaker 3: five years. So literally, just google online calculator college savings 159 00:08:15,880 --> 00:08:18,119 Speaker 3: and a bunch will come up, and that could really 160 00:08:18,120 --> 00:08:21,120 Speaker 3: help you set your budget and your savings. 161 00:08:21,120 --> 00:08:23,480 Speaker 4: Schools you need to sacrifice too. 162 00:08:24,120 --> 00:08:26,360 Speaker 5: I know my parents and grandparents did a lot of 163 00:08:26,400 --> 00:08:30,960 Speaker 5: sacrificing to help where they could based on the value 164 00:08:31,000 --> 00:08:31,840 Speaker 5: of higher education. 165 00:08:32,120 --> 00:08:34,600 Speaker 4: So the family really values higher education. 166 00:08:34,280 --> 00:08:35,800 Speaker 5: They're going to put a little bit of skin in 167 00:08:35,840 --> 00:08:37,920 Speaker 5: the game and sacrifice a little bit to make sure 168 00:08:37,920 --> 00:08:38,920 Speaker 5: they're saving something. 169 00:08:39,480 --> 00:08:42,600 Speaker 3: Any money saved is better than no money saved, is 170 00:08:42,600 --> 00:08:46,720 Speaker 3: what I say. And you can really just reduce the 171 00:08:46,760 --> 00:08:50,600 Speaker 3: amount of money that you're going to maybe potentially take 172 00:08:50,640 --> 00:08:53,400 Speaker 3: out in student loans. So anything is better than nothing. 173 00:08:54,240 --> 00:08:57,360 Speaker 1: So both you and Robin have mentioned five twenty nine 174 00:08:57,360 --> 00:08:59,520 Speaker 1: savings plan. Can you tell me a little bit about 175 00:08:59,520 --> 00:09:02,040 Speaker 1: what a five two nine savings plan is and how 176 00:09:02,080 --> 00:09:03,920 Speaker 1: it differs from other savings accounts. 177 00:09:04,720 --> 00:09:09,680 Speaker 3: Five two nine's are kind of like retirement accounts, but 178 00:09:09,840 --> 00:09:14,800 Speaker 3: for higher education savings. Just like retirement accounts, the money 179 00:09:14,800 --> 00:09:17,600 Speaker 3: placed in a five two nine can actively work for you. 180 00:09:17,679 --> 00:09:23,120 Speaker 3: These funds that are saved are invested in stocks, bonds, cash, 181 00:09:23,240 --> 00:09:26,440 Speaker 3: a mixture of portfolios in order to to have the 182 00:09:26,480 --> 00:09:32,439 Speaker 3: objective to grow your money over time with standard savings accounts. Obviously, 183 00:09:32,600 --> 00:09:36,000 Speaker 3: any money you save towards higher education is wonderful, we 184 00:09:36,120 --> 00:09:38,800 Speaker 3: love it. But with standard savings accounts, most of the 185 00:09:38,800 --> 00:09:42,520 Speaker 3: time you don't have the potential to earn investment returns. 186 00:09:43,559 --> 00:09:46,920 Speaker 3: And all earnings in a five to nine are tax free, 187 00:09:47,559 --> 00:09:51,480 Speaker 3: meaning the gains on your college savings will not be 188 00:09:51,520 --> 00:09:55,800 Speaker 3: subject to taxes as long as you use the money 189 00:09:56,120 --> 00:10:01,079 Speaker 3: for qualified education purposes like tuition, room and board, books, supplies, 190 00:10:01,200 --> 00:10:04,320 Speaker 3: and that sort of thing. So it is a tax 191 00:10:04,360 --> 00:10:07,840 Speaker 3: advantage way to say for college. There are so many 192 00:10:07,920 --> 00:10:10,880 Speaker 3: tax advantages of a five to nine that I feel 193 00:10:10,880 --> 00:10:13,960 Speaker 3: like a lot of people don't know about. First of all, 194 00:10:14,040 --> 00:10:17,520 Speaker 3: like I said before, the tax deferred growth of earnings, 195 00:10:17,720 --> 00:10:22,720 Speaker 3: which is not standard to other investment accounts. It's not 196 00:10:23,000 --> 00:10:26,920 Speaker 3: you normally get taxed on growth in the account. Also, 197 00:10:27,600 --> 00:10:32,040 Speaker 3: some states offer a tax deduction on your state income taxes, 198 00:10:32,480 --> 00:10:34,680 Speaker 3: so make sure to check with your home state to 199 00:10:35,120 --> 00:10:37,520 Speaker 3: see if they offer that. A lot of states do. 200 00:10:38,440 --> 00:10:40,360 Speaker 2: Robin, you had mentioned that there are these two major 201 00:10:40,400 --> 00:10:43,760 Speaker 2: different types of five twenty nine plans. There's this educational 202 00:10:43,800 --> 00:10:47,440 Speaker 2: plan and a prepaid plan. Could you break down a 203 00:10:47,440 --> 00:10:49,640 Speaker 2: little bit the differences between the two plans for us. 204 00:10:50,320 --> 00:10:52,400 Speaker 5: Sure, they're both under section five to nine, and we 205 00:10:52,480 --> 00:10:54,840 Speaker 5: keep saying section five to nine. Section five to nine 206 00:10:54,880 --> 00:10:57,080 Speaker 5: is the number of the Internal Revenue cod that gives 207 00:10:57,160 --> 00:11:01,640 Speaker 5: us the tax exempt status as college savings. Okay, So 208 00:11:01,960 --> 00:11:05,360 Speaker 5: five to nine of the Internal Revenue Code says any state, 209 00:11:06,200 --> 00:11:08,680 Speaker 5: as long as they're actively involved, can set up either 210 00:11:08,720 --> 00:11:12,520 Speaker 5: a prepaid plan, which basically means you're buying college tuition 211 00:11:12,800 --> 00:11:16,640 Speaker 5: or whatever at a set rate, and the plan itself 212 00:11:17,120 --> 00:11:20,240 Speaker 5: is pooling those funds together for investment purposes and making 213 00:11:20,320 --> 00:11:23,000 Speaker 5: it available to pay out whatever they promise to pay 214 00:11:23,000 --> 00:11:25,839 Speaker 5: in the future. So I call it our most conservative 215 00:11:25,960 --> 00:11:30,200 Speaker 5: savings option, Okay. In Michigan it's called Michigan Education Trust. 216 00:11:30,280 --> 00:11:34,600 Speaker 5: It's prepaid. You're buying a met contract based on the 217 00:11:34,640 --> 00:11:38,080 Speaker 5: actual tuition today, and when your child is ready to 218 00:11:38,080 --> 00:11:41,680 Speaker 5: attend college, it's worth the number of credits you purchased 219 00:11:42,320 --> 00:11:45,000 Speaker 5: at whatever institution you attend, if it's a Michigan public 220 00:11:45,000 --> 00:11:48,400 Speaker 5: college at that time. So that's the prepaid concept of 221 00:11:48,400 --> 00:11:51,320 Speaker 5: how it works in Michigan. Some states, such as Florida, 222 00:11:51,440 --> 00:11:54,600 Speaker 5: offer a prepaid concept for even a room and board component, 223 00:11:54,880 --> 00:11:58,160 Speaker 5: so they price it out based on current cost of 224 00:11:58,240 --> 00:12:00,679 Speaker 5: either room and board or tuition, and then they make 225 00:12:00,679 --> 00:12:02,959 Speaker 5: a promise to pay a certain value in the future, 226 00:12:03,360 --> 00:12:06,079 Speaker 5: whereby we don't come and ask you for more money now. 227 00:12:06,280 --> 00:12:08,880 Speaker 5: Then folks say, oh, wellll but it's for Michigan colleges. 228 00:12:09,200 --> 00:12:13,240 Speaker 5: But there's a refund portion or a refundable option under 229 00:12:13,320 --> 00:12:16,000 Speaker 5: met so that if the student does go to Wisconsin, 230 00:12:16,559 --> 00:12:18,920 Speaker 5: there is a refund value that follows that student, so 231 00:12:18,960 --> 00:12:21,000 Speaker 5: they don't lose their money just because they go out 232 00:12:21,040 --> 00:12:23,319 Speaker 5: of state or they go to a Michigan private college. 233 00:12:23,400 --> 00:12:25,760 Speaker 5: We just put a refund value, and the refund value 234 00:12:25,800 --> 00:12:28,760 Speaker 5: is always tied to a tuition figure. So if they 235 00:12:28,760 --> 00:12:32,080 Speaker 5: go to Wisconsin, it's average tuition of the Michigan public 236 00:12:32,080 --> 00:12:35,320 Speaker 5: colleges might be lower than the actual tuition if they 237 00:12:35,360 --> 00:12:37,640 Speaker 5: were going to use it in credit hour form. If 238 00:12:37,679 --> 00:12:41,719 Speaker 5: they go to a Michigan private college Kalamazoo College, then 239 00:12:41,760 --> 00:12:44,640 Speaker 5: it's weighted average tuition, which is a slightly higher figure 240 00:12:44,679 --> 00:12:47,880 Speaker 5: than average. It gets paid directly to the private college, 241 00:12:48,080 --> 00:12:51,240 Speaker 5: so it's never where they're losing the money. It's always 242 00:12:51,280 --> 00:12:53,559 Speaker 5: that it's just a different value based on the decision 243 00:12:53,600 --> 00:12:55,960 Speaker 5: the student makes when they're ready to attend, and so 244 00:12:56,000 --> 00:12:58,120 Speaker 5: I look at that as our most conservative option of 245 00:12:58,360 --> 00:13:00,640 Speaker 5: You know, you talk to financial planners, what do they say? 246 00:13:01,240 --> 00:13:04,760 Speaker 5: They always say, diversify. Diversify. You don't want all your 247 00:13:04,760 --> 00:13:07,560 Speaker 5: eggs in one basket. You want some in cash, you 248 00:13:07,640 --> 00:13:10,680 Speaker 5: want some in bonds, you want something in conservative but 249 00:13:10,679 --> 00:13:13,680 Speaker 5: then you also want that offset in the market where 250 00:13:13,720 --> 00:13:16,480 Speaker 5: you have that earning potential. So think of our MASP 251 00:13:16,760 --> 00:13:20,199 Speaker 5: and our MAP as those vehicles that give you investment 252 00:13:20,240 --> 00:13:24,400 Speaker 5: options to choose from, as opposed to this guaranteed option, 253 00:13:24,480 --> 00:13:26,360 Speaker 5: which is what I like to call it. The prepaid 254 00:13:26,400 --> 00:13:29,640 Speaker 5: plans give you more of that guaranteed or secured option. 255 00:13:29,720 --> 00:13:32,480 Speaker 2: I should say, how much can we expect these plans 256 00:13:32,520 --> 00:13:33,920 Speaker 2: to vary from state to state? 257 00:13:34,720 --> 00:13:37,960 Speaker 5: They're very similar, but each state has a unique little 258 00:13:38,040 --> 00:13:42,840 Speaker 5: difference depending on their setup. So the primary reasons they're 259 00:13:42,880 --> 00:13:45,440 Speaker 5: all there are the same, right, They're all in common 260 00:13:45,480 --> 00:13:48,040 Speaker 5: in terms of why they're there and what they allow 261 00:13:48,120 --> 00:13:51,280 Speaker 5: you to do save for college, but they all have 262 00:13:51,480 --> 00:13:55,160 Speaker 5: uniquely different aspects to them. Some have the state deduction, 263 00:13:55,320 --> 00:13:58,839 Speaker 5: some don't. Some will allow a state deduction. Regardless of 264 00:13:58,840 --> 00:14:01,760 Speaker 5: the state you're saving in some don't those types of things. 265 00:14:02,000 --> 00:14:04,680 Speaker 5: They all might have a little bit different investment options 266 00:14:04,720 --> 00:14:08,160 Speaker 5: they're offering you. So some of them might run through 267 00:14:08,200 --> 00:14:11,640 Speaker 5: the TIAA Creft platform, some might run through t row 268 00:14:11,679 --> 00:14:15,600 Speaker 5: Price or other companies. So in that regard you may 269 00:14:15,600 --> 00:14:19,480 Speaker 5: have slightly different investment options to choose from, as in 270 00:14:19,560 --> 00:14:22,760 Speaker 5: the advisor program you have to go through a broker 271 00:14:23,240 --> 00:14:26,160 Speaker 5: to actually open it an account and where they can 272 00:14:26,200 --> 00:14:29,680 Speaker 5: customize an account for you, whereas in the direct plans 273 00:14:29,680 --> 00:14:31,600 Speaker 5: you're doing it on your own. So they all have 274 00:14:31,680 --> 00:14:34,080 Speaker 5: a little bit different twist, which is why you want 275 00:14:34,080 --> 00:14:35,000 Speaker 5: to do your homework. 276 00:14:35,600 --> 00:14:38,680 Speaker 2: Well, we can definitely expect these tax advantages though, so 277 00:14:38,720 --> 00:14:41,000 Speaker 2: that where the money is growing tax free and we 278 00:14:41,040 --> 00:14:42,960 Speaker 2: can take it out tax free if we are using 279 00:14:43,000 --> 00:14:47,720 Speaker 2: an unqualified expenses, Yes, that's amazing. And so what are 280 00:14:47,800 --> 00:14:50,920 Speaker 2: some of the best ways that we can maximize our 281 00:14:50,960 --> 00:14:52,120 Speaker 2: funds in these accounts? 282 00:14:52,880 --> 00:14:56,120 Speaker 3: First of all, easypsy thing that you can do. If 283 00:14:56,120 --> 00:14:59,360 Speaker 3: you have a five to nine account, you should start early, 284 00:14:59,360 --> 00:15:03,400 Speaker 3: as we've discussed, but contribute regularly. There are options on 285 00:15:04,320 --> 00:15:08,800 Speaker 3: state websites and direct soul plans that you can set 286 00:15:08,840 --> 00:15:11,960 Speaker 3: it and forget it, and so you can do just 287 00:15:12,320 --> 00:15:17,120 Speaker 3: regular contributions every month from your payroll, direct deposit or 288 00:15:17,760 --> 00:15:20,520 Speaker 3: every fifth of the month. It takes out fifty dollars 289 00:15:20,560 --> 00:15:23,360 Speaker 3: and you don't even have to worry about it. Second 290 00:15:23,400 --> 00:15:26,440 Speaker 3: of all, make sure that when you get a bonus 291 00:15:26,600 --> 00:15:30,800 Speaker 3: or a tax refund or a raise, that you consider 292 00:15:30,920 --> 00:15:36,200 Speaker 3: increasing your contributions because obviously the more that you fund, 293 00:15:36,720 --> 00:15:40,600 Speaker 3: the greater possibility it is for it to grow. And also, 294 00:15:41,840 --> 00:15:44,960 Speaker 3: some employers will match your five to nine contributions up 295 00:15:44,960 --> 00:15:47,880 Speaker 3: to a certain amount, which is awesome, and so make 296 00:15:47,880 --> 00:15:50,480 Speaker 3: sure to check with your HR department to see if 297 00:15:50,520 --> 00:15:54,480 Speaker 3: this benefit is available. For sure, ask friends and family 298 00:15:54,680 --> 00:15:58,040 Speaker 3: to contribute to your five to nine plan. In advest 299 00:15:58,320 --> 00:16:02,640 Speaker 3: and for MASP, we have a platform called you Gift, 300 00:16:02,720 --> 00:16:04,960 Speaker 3: and you literally can set up a code. Let's say 301 00:16:05,000 --> 00:16:07,760 Speaker 3: I'm a parent, which i am not, but let's say 302 00:16:07,800 --> 00:16:10,680 Speaker 3: I am a parrot and I have a five to 303 00:16:10,840 --> 00:16:14,480 Speaker 3: nine for a child. That child has a unique gift code, 304 00:16:14,880 --> 00:16:18,040 Speaker 3: and Matt, you can go and just enter that code 305 00:16:18,040 --> 00:16:22,320 Speaker 3: and say, here's fifty dollars for your birthday. Happy birthday, 306 00:16:22,640 --> 00:16:26,840 Speaker 3: little Jackie. And also depending on your state, because again 307 00:16:26,920 --> 00:16:30,840 Speaker 3: at very state to state, the gift contributors may also 308 00:16:30,920 --> 00:16:36,160 Speaker 3: be eligible for state tax deductions themselves. And lastly, there 309 00:16:36,160 --> 00:16:40,840 Speaker 3: are programs that partner with major retailers, local restaurants, and 310 00:16:40,920 --> 00:16:45,720 Speaker 3: other businesses like you promise to give their members cash 311 00:16:45,880 --> 00:16:49,520 Speaker 3: back or other rewards on their purchases, which then can 312 00:16:49,560 --> 00:16:51,560 Speaker 3: be rolled into a five to nine account. 313 00:16:51,840 --> 00:16:54,480 Speaker 4: I was going to bring that up, Jackie, family and friends. 314 00:16:54,520 --> 00:16:56,600 Speaker 5: You don't have to be related to someone to even 315 00:16:56,640 --> 00:16:59,000 Speaker 5: open up an account and say for that child yourself. 316 00:16:59,760 --> 00:17:01,640 Speaker 5: Have some folks come up to me, I don't have children, 317 00:17:01,680 --> 00:17:03,920 Speaker 5: but I want to help someone. Well, pick a child 318 00:17:03,920 --> 00:17:06,520 Speaker 5: at Sunday school or someone in your neighborhood or in 319 00:17:06,560 --> 00:17:09,960 Speaker 5: your community, and you can open up an account in 320 00:17:10,040 --> 00:17:12,480 Speaker 5: their name. You'll just need their Social Security numbers. So 321 00:17:12,520 --> 00:17:14,720 Speaker 5: you want to talk to the parents, of course, but 322 00:17:15,280 --> 00:17:19,080 Speaker 5: you can also contribute to existing accounts regardless of your 323 00:17:19,119 --> 00:17:20,680 Speaker 5: relationship to those children. 324 00:17:21,200 --> 00:17:21,840 Speaker 4: But guess what. 325 00:17:22,720 --> 00:17:24,879 Speaker 5: You can open up an account in your own name 326 00:17:25,480 --> 00:17:28,520 Speaker 5: and start saving right now, and when you have a child, 327 00:17:28,680 --> 00:17:31,040 Speaker 5: you can transfer that account to the child, put the 328 00:17:31,280 --> 00:17:33,880 Speaker 5: child's name on it, Okay, so. 329 00:17:33,920 --> 00:17:37,119 Speaker 2: You can change the beneficiary that's of any account. 330 00:17:37,160 --> 00:17:41,960 Speaker 3: That's interesting, But also you can save for yourself for 331 00:17:42,240 --> 00:17:45,800 Speaker 3: your future education expenses. If you would plan on going 332 00:17:45,840 --> 00:17:49,840 Speaker 3: to grad school or want to take a community college class, 333 00:17:49,880 --> 00:17:53,240 Speaker 3: you could absolutely do that. I have accounts for my 334 00:17:53,359 --> 00:17:56,639 Speaker 3: nieces and nephews and a lot of gen zers, and 335 00:17:56,720 --> 00:17:59,399 Speaker 3: like the later generations are looking at not having kids, 336 00:17:59,600 --> 00:18:02,280 Speaker 3: but there's always a child in your life that you 337 00:18:02,320 --> 00:18:03,000 Speaker 3: can save for. 338 00:18:03,440 --> 00:18:06,000 Speaker 5: Absolutely. Okay, I'm just gonna say this last thing, then 339 00:18:06,040 --> 00:18:09,280 Speaker 5: you can change a topic. But literally, I am a 340 00:18:09,680 --> 00:18:13,479 Speaker 5: parent who has two children that are college graduates. But 341 00:18:13,480 --> 00:18:16,320 Speaker 5: now i'm a grandparent. My name is Gigi, you guys, 342 00:18:16,880 --> 00:18:20,520 Speaker 5: and Gigi opened up accounts for her grandchildren each time 343 00:18:20,520 --> 00:18:22,919 Speaker 5: they were born, and so I tease them and tell 344 00:18:22,960 --> 00:18:25,600 Speaker 5: them they get paid before me because they get twenty 345 00:18:25,600 --> 00:18:30,520 Speaker 5: five dollars every two weeks. I'm on payroll deduction. Yeah, 346 00:18:30,600 --> 00:18:32,159 Speaker 5: and I keep remembering I got to go out there 347 00:18:32,200 --> 00:18:34,000 Speaker 5: and stop it, because my goal is not to buy 348 00:18:34,000 --> 00:18:36,520 Speaker 5: their whole college education. I'm just trying to buy one 349 00:18:36,640 --> 00:18:39,960 Speaker 5: year for them to use on their senior year. And 350 00:18:40,040 --> 00:18:42,480 Speaker 5: if they give full scholarships, I keep telling them we're 351 00:18:42,520 --> 00:18:43,679 Speaker 5: going on a trip together. 352 00:18:43,920 --> 00:18:44,480 Speaker 4: Amazing. 353 00:18:44,800 --> 00:18:48,800 Speaker 5: So just saying all that to say, yeah, payroll deduction 354 00:18:48,880 --> 00:18:49,760 Speaker 5: works fantastic. 355 00:18:50,359 --> 00:18:52,480 Speaker 1: Now does it matter what type of school you're using 356 00:18:52,520 --> 00:18:56,320 Speaker 1: it on, private versus public, state, in state versus out 357 00:18:56,320 --> 00:18:57,680 Speaker 1: of state, does it matter at all? 358 00:18:58,359 --> 00:19:03,199 Speaker 3: Absolutely not. Can be used at any eligible higher education 359 00:19:03,359 --> 00:19:07,680 Speaker 3: institution in state, out of state, and even some abroad. 360 00:19:08,920 --> 00:19:14,119 Speaker 3: So if you want to know if the University of 361 00:19:14,160 --> 00:19:20,120 Speaker 3: Maryland is accredited, spoiler alert, it is, just google the 362 00:19:20,160 --> 00:19:24,280 Speaker 3: Federal School Code List on the US Department of Education's 363 00:19:24,320 --> 00:19:28,160 Speaker 3: website and then you can just search for University of Maryland, 364 00:19:28,240 --> 00:19:31,840 Speaker 3: University of Michigan, et cetera, et cetera, and you can 365 00:19:31,880 --> 00:19:35,000 Speaker 3: see if they're accredited or not. And if they are accredited, 366 00:19:35,520 --> 00:19:36,960 Speaker 3: a five to nine covers them. 367 00:19:37,640 --> 00:19:40,800 Speaker 1: Okay, So it's really just that accreditation that we need 368 00:19:40,840 --> 00:19:42,760 Speaker 1: to be looking up, and if if they're credited, we're 369 00:19:42,800 --> 00:19:44,080 Speaker 1: good to use our five twenty nine. 370 00:19:45,040 --> 00:19:49,000 Speaker 3: Also, we haven't even gotten into the part of technical 371 00:19:49,040 --> 00:19:52,280 Speaker 3: schools and apprenticeships and that sort of thing. But if 372 00:19:52,359 --> 00:19:57,280 Speaker 3: you are looking into alternatives to college or community colleges, 373 00:19:57,440 --> 00:20:01,000 Speaker 3: which is a okay, absolutely, you can also use that 374 00:20:01,200 --> 00:20:09,000 Speaker 3: Federal School Code list as well. 375 00:20:09,160 --> 00:20:11,199 Speaker 1: The money in your five twenty nine account can be 376 00:20:11,320 --> 00:20:15,560 Speaker 1: used for a number of different educational institutions public, private, 377 00:20:15,840 --> 00:20:18,280 Speaker 1: in state, out of state as long as they are credited. 378 00:20:18,400 --> 00:20:20,760 Speaker 1: And this is great. It makes me feel incredibly hopeful 379 00:20:20,760 --> 00:20:22,879 Speaker 1: for the future. But can a five twenty nine impact 380 00:20:22,880 --> 00:20:25,640 Speaker 1: how much we receive from other sources. Let's say we've 381 00:20:25,640 --> 00:20:28,320 Speaker 1: done exactly what Robin and Jackie recommend, and we started 382 00:20:28,320 --> 00:20:30,359 Speaker 1: saving in a five to twenty nine account. This second 383 00:20:30,359 --> 00:20:32,560 Speaker 1: a child was born, and now we have a good 384 00:20:32,560 --> 00:20:34,760 Speaker 1: amount of money in that account. How does the money 385 00:20:34,760 --> 00:20:38,680 Speaker 1: in that account impact a student's financial aid application? According 386 00:20:38,720 --> 00:20:42,400 Speaker 1: to Federal Student Aid data, the federal government received more 387 00:20:42,480 --> 00:20:47,119 Speaker 1: than seventy point eight million FAFTA submissions during the twenty 388 00:20:47,160 --> 00:20:50,520 Speaker 1: twenty to twenty twenty one application cycle, with roughly half 389 00:20:50,560 --> 00:20:54,160 Speaker 1: of those applicants seeking their first bachelor's degree. With these 390 00:20:54,320 --> 00:20:57,159 Speaker 1: millions and millions of applicants each year, does the government 391 00:20:57,200 --> 00:20:59,120 Speaker 1: look at somebody with a five to twenty nine plan 392 00:20:59,200 --> 00:21:01,400 Speaker 1: and think you're what, are off than others and therefore 393 00:21:01,440 --> 00:21:08,400 Speaker 1: don't need financial aid? I'm curious, though, what about financial 394 00:21:08,440 --> 00:21:10,720 Speaker 1: aid if we have a five twenty nine and it's 395 00:21:10,880 --> 00:21:13,399 Speaker 1: in a really good place, but we still need a 396 00:21:13,400 --> 00:21:14,880 Speaker 1: little bit of help. Are we going to miss out 397 00:21:14,880 --> 00:21:15,920 Speaker 1: on any financial aid? 398 00:21:16,480 --> 00:21:19,240 Speaker 5: You're not going to miss out because only five point 399 00:21:19,320 --> 00:21:22,240 Speaker 5: six four percent of your savings is going to count 400 00:21:22,280 --> 00:21:24,440 Speaker 5: toward your eligibility for. 401 00:21:24,560 --> 00:21:25,440 Speaker 4: Need based aid. 402 00:21:25,520 --> 00:21:32,120 Speaker 5: Remember, financial aid is just not only scholarships based on academics, 403 00:21:32,760 --> 00:21:36,960 Speaker 5: but there's need based aid which are grants, there's academic 404 00:21:37,040 --> 00:21:40,320 Speaker 5: based aid which is considered a scholarship, and then you 405 00:21:40,359 --> 00:21:42,439 Speaker 5: have student loans, which we really don't want you go 406 00:21:42,480 --> 00:21:42,840 Speaker 5: on there. 407 00:21:43,440 --> 00:21:45,280 Speaker 4: So that's why we want you to save. 408 00:21:45,760 --> 00:21:50,359 Speaker 3: Yeah, when the Department of Education calculates the Expected Family 409 00:21:50,400 --> 00:21:54,720 Speaker 3: Contribution or EFC if you're seeing it on Google, parent 410 00:21:54,960 --> 00:21:59,000 Speaker 3: owned five two nine plans are counted as a parental asset, 411 00:21:59,160 --> 00:22:01,239 Speaker 3: And so what does that mean. It means it's not 412 00:22:01,320 --> 00:22:04,360 Speaker 3: counted as a student asset, which means it has a 413 00:22:04,400 --> 00:22:08,280 Speaker 3: lower impact on aid eligibility compared to what student owned 414 00:22:08,320 --> 00:22:12,840 Speaker 3: assets have. So long story short, your five to nine 415 00:22:12,920 --> 00:22:16,480 Speaker 3: balance has very little impact on a student's consideration for 416 00:22:16,600 --> 00:22:19,520 Speaker 3: financial aid, unlike other savings vehicles. 417 00:22:20,240 --> 00:22:21,840 Speaker 1: You know, we mentioned a couple of the different types 418 00:22:21,840 --> 00:22:23,639 Speaker 1: of financial aids. Robin, I want to dig in that 419 00:22:23,720 --> 00:22:26,760 Speaker 1: into that a bit more and really find out what 420 00:22:26,840 --> 00:22:29,320 Speaker 1: kind of financial aid is available to us when we're 421 00:22:29,320 --> 00:22:31,680 Speaker 1: looking to pay for college or even grad school. Does 422 00:22:31,680 --> 00:22:34,240 Speaker 1: it differ at all. What are the things that we 423 00:22:34,280 --> 00:22:35,880 Speaker 1: can kind of start with. 424 00:22:36,840 --> 00:22:39,560 Speaker 5: So depending on where you're at, of course, you're first 425 00:22:39,560 --> 00:22:41,960 Speaker 5: going to have that student fill out a FASTPA and 426 00:22:42,040 --> 00:22:43,720 Speaker 5: the parents as well are going to fill out the 427 00:22:43,720 --> 00:22:47,280 Speaker 5: free application for Federal student aid. That's really the driver 428 00:22:47,400 --> 00:22:50,840 Speaker 5: in most of this, because all colleges are going to 429 00:22:50,840 --> 00:22:53,760 Speaker 5: look for that in determining whether or not they're going 430 00:22:53,840 --> 00:23:01,760 Speaker 5: to offer institutional grants or scholarships as well. The FASTPASA 431 00:23:02,200 --> 00:23:05,560 Speaker 5: dot gov, they'll want to go there and complete that. 432 00:23:06,200 --> 00:23:09,520 Speaker 5: But when it comes to financial aid, it is comprised 433 00:23:09,560 --> 00:23:14,360 Speaker 5: of scholarships, grants, your savings obviously they're going to take 434 00:23:14,359 --> 00:23:18,439 Speaker 5: a little of that in consideration, and then your student loans. 435 00:23:18,520 --> 00:23:21,359 Speaker 5: So if you have a cost of attendance that the 436 00:23:21,400 --> 00:23:24,840 Speaker 5: college is going to calculate for you, and you have 437 00:23:24,960 --> 00:23:27,960 Speaker 5: some money that has been allocated to all of those buckets, 438 00:23:27,960 --> 00:23:29,240 Speaker 5: but at the end of the day you have a 439 00:23:29,280 --> 00:23:32,200 Speaker 5: balance left over, then they're going to say, hey, there's 440 00:23:32,240 --> 00:23:35,040 Speaker 5: a loan for that that you can take. Maybe you 441 00:23:35,040 --> 00:23:38,080 Speaker 5: don't have enough money to cover the entire cost, they're 442 00:23:38,119 --> 00:23:40,439 Speaker 5: going to allow you to take out a loan. The 443 00:23:40,520 --> 00:23:42,560 Speaker 5: student may be able to take out a loan. The 444 00:23:42,720 --> 00:23:44,679 Speaker 5: student is only going to be allowed to borrow so 445 00:23:44,840 --> 00:23:47,080 Speaker 5: much before then they say the parent can take out 446 00:23:47,119 --> 00:23:49,520 Speaker 5: a loan, but they will offer you a loan to 447 00:23:49,520 --> 00:23:50,320 Speaker 5: fill that gap. 448 00:23:51,119 --> 00:23:54,560 Speaker 2: So we mentioned FASA. Is there any other options outside 449 00:23:54,720 --> 00:23:57,919 Speaker 2: of FASA for loans to help pay for education? And 450 00:23:57,960 --> 00:24:00,000 Speaker 2: if so, where might we go look for those? 451 00:24:01,040 --> 00:24:02,600 Speaker 4: Oh? Boy, there's a lot of loans. 452 00:24:02,640 --> 00:24:05,720 Speaker 5: So I always direct folks to their financial aid advisor 453 00:24:06,200 --> 00:24:10,360 Speaker 5: because there's federal loans, there's state loans, there's private loans, 454 00:24:11,240 --> 00:24:12,960 Speaker 5: and the best loans out there are going to be 455 00:24:13,000 --> 00:24:16,040 Speaker 5: the federal loans because the loan doesn't start to accrue 456 00:24:16,080 --> 00:24:20,680 Speaker 5: interest until the child graduates college, whereas an unsubsidized loan 457 00:24:21,160 --> 00:24:24,600 Speaker 5: the interest is starting to accrue as they're in college. Wow, 458 00:24:24,600 --> 00:24:27,360 Speaker 5: so there's a little bit better repayment options with those 459 00:24:27,400 --> 00:24:29,680 Speaker 5: federal loans that it is with the state loans. If 460 00:24:29,720 --> 00:24:32,080 Speaker 5: there are state loans that you can take, and then 461 00:24:32,119 --> 00:24:33,800 Speaker 5: you have the private loans where you're just going to 462 00:24:33,880 --> 00:24:36,399 Speaker 5: a credit union or a bank, and the problem with 463 00:24:36,440 --> 00:24:38,320 Speaker 5: those is just the fact that the interest rates could 464 00:24:38,359 --> 00:24:41,640 Speaker 5: be higher, and again, your interest rate could be accruing 465 00:24:41,680 --> 00:24:44,480 Speaker 5: while you're in school. So you want to be very 466 00:24:44,520 --> 00:24:47,280 Speaker 5: careful and do your homework. Some of them were going 467 00:24:47,359 --> 00:24:51,880 Speaker 5: to have some credit rating requirements also, so the lower 468 00:24:52,040 --> 00:24:55,240 Speaker 5: your credit score is, the higher the interest rate is 469 00:24:55,280 --> 00:24:56,800 Speaker 5: going to be that they're going to give you that 470 00:24:56,880 --> 00:24:58,440 Speaker 5: loan for which what does that mean? 471 00:24:59,080 --> 00:25:01,000 Speaker 4: The more money to pay back. 472 00:25:04,000 --> 00:25:06,080 Speaker 1: We'll be right back with more grown up stuff how 473 00:25:06,119 --> 00:25:15,399 Speaker 1: to adult. After a quick break, and we're back with 474 00:25:15,520 --> 00:25:21,959 Speaker 1: more grown up stuff how to adults. We've been talking 475 00:25:22,000 --> 00:25:27,400 Speaker 1: a lot about these different types of financial aid, grants, scholarships, loans. Now, 476 00:25:27,440 --> 00:25:29,199 Speaker 1: I think we can all kind of safely say we 477 00:25:29,280 --> 00:25:31,480 Speaker 1: understand the concept of a loan. It's money that is 478 00:25:31,520 --> 00:25:33,480 Speaker 1: lent to you that you have to pay back with interest. 479 00:25:33,880 --> 00:25:37,159 Speaker 1: But what is the difference between a grant and a scholarship? 480 00:25:37,440 --> 00:25:38,360 Speaker 1: Is there any difference? 481 00:25:39,040 --> 00:25:40,119 Speaker 4: There is a difference. 482 00:25:40,560 --> 00:25:43,959 Speaker 5: A grant, it's need based, it's given to the student. 483 00:25:44,040 --> 00:25:46,760 Speaker 5: The student does not have to pay that back. The 484 00:25:47,040 --> 00:25:50,560 Speaker 5: most popular grant is the Pyal grant. It's federal funded. 485 00:25:51,080 --> 00:25:54,200 Speaker 5: It's given to a student based on their financial need 486 00:25:54,760 --> 00:25:57,639 Speaker 5: and nothing else, okay, and their desire to go to college. 487 00:25:58,200 --> 00:26:03,200 Speaker 5: A scholarship usually takes into consideration a merit based system. 488 00:26:03,560 --> 00:26:06,280 Speaker 5: Some of those scholarships also have a need based, but 489 00:26:06,440 --> 00:26:09,119 Speaker 5: the main thing is the merit based. If it's scholarship, 490 00:26:09,119 --> 00:26:11,920 Speaker 5: it's merit based. So you want to incourase those young 491 00:26:11,920 --> 00:26:14,359 Speaker 5: people to study hard and get great grades because they 492 00:26:14,400 --> 00:26:17,800 Speaker 5: could be eligible for merit based scholarships. 493 00:26:18,560 --> 00:26:20,959 Speaker 1: The other thing I want to add to that is 494 00:26:21,560 --> 00:26:25,240 Speaker 1: for anybody who's in college too, right now, scholarships do 495 00:26:25,320 --> 00:26:29,280 Speaker 1: not mean only when you're first going into school. I 496 00:26:29,320 --> 00:26:32,080 Speaker 1: applied every year I was in college for merit based 497 00:26:32,119 --> 00:26:35,480 Speaker 1: scholarships and would get some money from something each year 498 00:26:35,800 --> 00:26:38,320 Speaker 1: just to kind of help absolutely keep the cost down. 499 00:26:38,359 --> 00:26:41,040 Speaker 1: And so there's always something and it does not only 500 00:26:41,119 --> 00:26:43,560 Speaker 1: allow freshmen or incoming freshmen to apply. 501 00:26:43,880 --> 00:26:45,119 Speaker 2: Can I apply for one now? 502 00:26:45,600 --> 00:26:48,560 Speaker 5: And you probably could, I mean depending. There is so 503 00:26:48,640 --> 00:26:50,919 Speaker 5: many different types of scholarships out and they're. 504 00:26:50,840 --> 00:26:52,560 Speaker 2: Really great at being an adult. You guys, I just 505 00:26:52,560 --> 00:26:55,000 Speaker 2: feel like you should fund this operation over. 506 00:26:54,840 --> 00:26:59,760 Speaker 3: Here that helped me fund help me be a scholarship. 507 00:27:00,200 --> 00:27:05,560 Speaker 1: Right we're at the Academy of it's helping other people 508 00:27:05,600 --> 00:27:08,520 Speaker 1: here and does not mean that we're professors at the 509 00:27:08,560 --> 00:27:13,640 Speaker 1: Academy of grown up stuff. Yes, two of you, Matt 510 00:27:13,640 --> 00:27:17,200 Speaker 1: and I are students. 511 00:27:16,000 --> 00:27:18,359 Speaker 5: But really on that same topic, you do want to 512 00:27:18,400 --> 00:27:21,040 Speaker 5: reapply for that fast for every year too, So you're 513 00:27:21,320 --> 00:27:24,040 Speaker 5: you're reapplying for all this stuff every single year that 514 00:27:24,080 --> 00:27:27,960 Speaker 5: you're in college. Okay, because your financial situation could have changed, 515 00:27:27,960 --> 00:27:29,919 Speaker 5: your grades could have went from a two point to 516 00:27:29,960 --> 00:27:32,800 Speaker 5: a three point, right, you might qualify for other stuff 517 00:27:32,840 --> 00:27:36,359 Speaker 5: that you didn't qualify for the year before. So absolutely 518 00:27:36,400 --> 00:27:38,600 Speaker 5: keep that in mind. You want to apply for everything 519 00:27:38,800 --> 00:27:40,240 Speaker 5: every year that you're in college. 520 00:27:40,680 --> 00:27:42,760 Speaker 1: And I want to kind of look at, now, something 521 00:27:42,760 --> 00:27:44,520 Speaker 1: else that I feel like sometimes is lumped in with 522 00:27:44,640 --> 00:27:46,800 Speaker 1: scholarships or grants or kind of some sort of financial 523 00:27:46,800 --> 00:27:50,160 Speaker 1: aid is work study. Oh yeah, what exactly is that? 524 00:27:50,280 --> 00:27:53,440 Speaker 1: How does it work towards our tuition? Tell me a 525 00:27:53,440 --> 00:27:54,240 Speaker 1: little bit about that. 526 00:27:55,040 --> 00:27:58,239 Speaker 5: Work study is a federal program, although I think some 527 00:27:58,359 --> 00:28:01,240 Speaker 5: states offer funding for it. Is well, it is a 528 00:28:01,320 --> 00:28:04,359 Speaker 5: need based program, so we're talking about a grant. The 529 00:28:04,440 --> 00:28:07,800 Speaker 5: primary concept is that you're attending school, you have some 530 00:28:07,880 --> 00:28:10,840 Speaker 5: more need. They offer you a job to work there 531 00:28:10,920 --> 00:28:13,640 Speaker 5: part time. Usually you have to carry a certain number 532 00:28:13,640 --> 00:28:16,600 Speaker 5: of credit hours to qualify for it. But the concept 533 00:28:16,640 --> 00:28:19,160 Speaker 5: is that you're able to earn money to then help 534 00:28:19,200 --> 00:28:22,639 Speaker 5: support your college expenses. So maybe you need money to 535 00:28:22,680 --> 00:28:25,720 Speaker 5: fill that gap for women board or books or supplies, 536 00:28:26,200 --> 00:28:28,080 Speaker 5: and the money you use there, the intent is that 537 00:28:28,119 --> 00:28:30,680 Speaker 5: you're going to use that money to help put towards 538 00:28:30,680 --> 00:28:31,800 Speaker 5: those college expenses. 539 00:28:32,520 --> 00:28:36,920 Speaker 2: Can you recommend like resources where students can go and 540 00:28:37,359 --> 00:28:40,800 Speaker 2: find out about grants that are available to them at 541 00:28:40,840 --> 00:28:43,560 Speaker 2: the state level or the national level, or any type 542 00:28:43,560 --> 00:28:45,800 Speaker 2: of grant or scholarship out there that they could apply for. 543 00:28:46,560 --> 00:28:50,600 Speaker 5: In Michigan, go to Michigan dot gov slash my student 544 00:28:50,680 --> 00:28:54,600 Speaker 5: aid that's student aid. You'll see all of the student 545 00:28:54,640 --> 00:28:57,200 Speaker 5: scholarships and grants that we offer at the state level. 546 00:28:57,920 --> 00:29:00,000 Speaker 5: And then there's also I believe a link out there 547 00:29:00,080 --> 00:29:03,320 Speaker 5: that allows students to further search for loans. So can 548 00:29:03,360 --> 00:29:05,680 Speaker 5: I just say a real quick plug, do not pay 549 00:29:05,720 --> 00:29:08,720 Speaker 5: somebody to search for your loans. There are so many 550 00:29:08,720 --> 00:29:12,160 Speaker 5: people out there that pay someone because they've been approached, 551 00:29:12,160 --> 00:29:14,200 Speaker 5: Oh we can get you all this money. They're not 552 00:29:14,240 --> 00:29:16,760 Speaker 5: doing anything you can't do yourself. And so I do 553 00:29:16,840 --> 00:29:18,680 Speaker 5: believe we have a link out on the my student 554 00:29:18,760 --> 00:29:21,720 Speaker 5: Aid website that allows you to do just that. So 555 00:29:21,880 --> 00:29:24,760 Speaker 5: if any of the scholarships that we're offering at the 556 00:29:24,800 --> 00:29:27,160 Speaker 5: state level, maybe you don't qualify for any of them. 557 00:29:27,520 --> 00:29:30,960 Speaker 5: Do your own search. You know, you'll be amazed at 558 00:29:30,960 --> 00:29:35,520 Speaker 5: some of the community based organizations that offer scholarships that 559 00:29:35,560 --> 00:29:38,440 Speaker 5: they give away all the time because you live in 560 00:29:38,480 --> 00:29:42,080 Speaker 5: the community, because of whatever, maybe you volunteered at a 561 00:29:42,080 --> 00:29:45,160 Speaker 5: certain organization and you didn't even know they were given scholarships. 562 00:29:45,640 --> 00:29:47,760 Speaker 5: But those types of scholarships exist as well. 563 00:29:48,480 --> 00:29:50,240 Speaker 1: Yeah, and even at your own university. I mean that's 564 00:29:50,240 --> 00:29:52,760 Speaker 1: what I did every year, is I just search within 565 00:29:52,800 --> 00:29:55,240 Speaker 1: my university to what were the scholarships that were available 566 00:29:55,280 --> 00:29:56,240 Speaker 1: that I qualified for. 567 00:29:57,000 --> 00:29:57,600 Speaker 4: Thank you I. 568 00:29:57,640 --> 00:30:02,120 Speaker 5: Keep forgetting to pour our der institution give great scholarships. 569 00:30:02,160 --> 00:30:04,800 Speaker 5: You also they should be talking to their financial aid 570 00:30:04,880 --> 00:30:08,280 Speaker 5: office and going on their college's website because those colleges 571 00:30:08,400 --> 00:30:16,080 Speaker 5: offer some great scholarships as well. 572 00:30:16,280 --> 00:30:18,440 Speaker 1: So to break it all down, loans are borrowed money 573 00:30:18,440 --> 00:30:20,840 Speaker 1: that you need to pay back with interests after you 574 00:30:20,920 --> 00:30:24,000 Speaker 1: finish college. Grants our need based money that you do 575 00:30:24,040 --> 00:30:26,840 Speaker 1: not have to pay back, and scholarships can be need 576 00:30:27,000 --> 00:30:30,800 Speaker 1: or merit based monetary awards for education. Federal work study 577 00:30:30,920 --> 00:30:33,640 Speaker 1: consists of often community based, part time jobs given to 578 00:30:33,640 --> 00:30:36,040 Speaker 1: students with financial need and that helps them pay for 579 00:30:36,080 --> 00:30:38,120 Speaker 1: expenses like tuition, room, and board or. 580 00:30:38,080 --> 00:30:39,600 Speaker 4: Other educational costs. 581 00:30:39,640 --> 00:30:42,400 Speaker 1: With all of these different forms of financial aid. What 582 00:30:42,520 --> 00:30:45,560 Speaker 1: happens when we find ourselves not needing everything we saved 583 00:30:45,560 --> 00:30:47,920 Speaker 1: away in our five twenty nine account. What if our 584 00:30:47,960 --> 00:30:51,680 Speaker 1: beneficiary gets a sizeable scholarship and there's still money left 585 00:30:51,680 --> 00:30:54,520 Speaker 1: over but no more educational expenses to spend it on. 586 00:30:54,960 --> 00:30:57,720 Speaker 1: Is that money just lost us? Or are we left 587 00:30:57,760 --> 00:30:59,960 Speaker 1: waiting for the next generation of college students to pay 588 00:31:00,240 --> 00:31:04,480 Speaker 1: it along to I want to come circle back to 589 00:31:05,280 --> 00:31:07,800 Speaker 1: a very important point that you made earlier, Robin of 590 00:31:08,280 --> 00:31:12,800 Speaker 1: if your grandchildren get full rides, then you'll take them 591 00:31:12,800 --> 00:31:15,720 Speaker 1: on a trip. Oh yeah, what happens if I don't 592 00:31:15,760 --> 00:31:19,840 Speaker 1: need everything in my five twenty nine What are my options? So? 593 00:31:19,960 --> 00:31:23,040 Speaker 5: The five to nine code says, first of all, if 594 00:31:23,080 --> 00:31:27,160 Speaker 5: my child gets a full scholarship, I can withdraw the 595 00:31:27,280 --> 00:31:30,280 Speaker 5: value of that. Let's say they tuition is ten thousand dollars, 596 00:31:31,160 --> 00:31:34,000 Speaker 5: it's a full scholarship. I withdraw ten thousand dollars and 597 00:31:34,040 --> 00:31:35,920 Speaker 5: I just give it to the low rascal because hey, 598 00:31:35,960 --> 00:31:38,720 Speaker 5: I'm so happy for you. I'll pay tax on the 599 00:31:38,800 --> 00:31:41,080 Speaker 5: earnings of the withdrawal, but I won't pay the penalty 600 00:31:41,120 --> 00:31:43,840 Speaker 5: tax that I would have paid for a non qualified 601 00:31:43,840 --> 00:31:44,840 Speaker 5: withdraw got it? 602 00:31:44,880 --> 00:31:45,200 Speaker 4: Okay? 603 00:31:45,240 --> 00:31:48,040 Speaker 5: But I'm only paying tax on an earnings portion my 604 00:31:48,120 --> 00:31:50,440 Speaker 5: principal upon I put in there is never taxed. So 605 00:31:50,480 --> 00:31:52,440 Speaker 5: that's the other sweet thing about five to nine, because 606 00:31:52,440 --> 00:31:54,680 Speaker 5: it was after tax dollars going in. I'll never pay 607 00:31:54,720 --> 00:31:58,120 Speaker 5: tax on that, but the earnings portion of it only. 608 00:31:58,480 --> 00:32:01,160 Speaker 5: I'll just include that in my tax earnings and then 609 00:32:01,240 --> 00:32:04,640 Speaker 5: I will not pay the additional ten percent penalty tax 610 00:32:04,800 --> 00:32:06,200 Speaker 5: because it was a full scholarship. 611 00:32:07,120 --> 00:32:11,000 Speaker 2: Is there anything Robin or Jackie that we missed completely 612 00:32:11,040 --> 00:32:13,840 Speaker 2: about the five twenty nine or student loans that either 613 00:32:13,840 --> 00:32:15,760 Speaker 2: of you want to take the time to talk about. 614 00:32:16,440 --> 00:32:19,240 Speaker 5: I just would like to encourage parents to tell their 615 00:32:19,280 --> 00:32:22,240 Speaker 5: young people that they're saving for them. We did a 616 00:32:22,280 --> 00:32:24,840 Speaker 5: couple of workshops for some students that had saved in 617 00:32:24,880 --> 00:32:28,120 Speaker 5: the MET program years ago. We went on campus, we 618 00:32:28,200 --> 00:32:30,080 Speaker 5: identified them, told them we were going to be on campus. 619 00:32:30,120 --> 00:32:32,160 Speaker 4: We'll explain to you how to use your account now. 620 00:32:32,920 --> 00:32:34,800 Speaker 5: And do you know about half of the students in 621 00:32:34,800 --> 00:32:36,680 Speaker 5: that room said they didn't know they had it until 622 00:32:36,720 --> 00:32:39,320 Speaker 5: they showed up at the college door. Wow. And I'm thinking, well, 623 00:32:39,360 --> 00:32:41,760 Speaker 5: how did the heck that that family motivate you. I know, 624 00:32:41,800 --> 00:32:44,320 Speaker 5: I told my children at age three, y'all going to college. 625 00:32:44,320 --> 00:32:46,120 Speaker 5: I'm saving for you to go to college. Don't mess 626 00:32:46,120 --> 00:32:50,480 Speaker 5: it up, And so they knew that the expectation was there, right, 627 00:32:51,080 --> 00:32:54,040 Speaker 5: But I would encourage families to talk to their students 628 00:32:54,160 --> 00:32:57,160 Speaker 5: about the fact that, A, yes, I'm saving. So therefore 629 00:32:57,280 --> 00:33:00,280 Speaker 5: the expectation is that you are going to participate in 630 00:33:00,320 --> 00:33:03,520 Speaker 5: some type of higher education. You get to choose, how 631 00:33:03,520 --> 00:33:06,560 Speaker 5: about that, But we want you to choose something beyond 632 00:33:06,640 --> 00:33:08,400 Speaker 5: high school, and we're going to help you get there. 633 00:33:08,640 --> 00:33:10,440 Speaker 5: We may not be able to afford the whole thing, 634 00:33:10,760 --> 00:33:12,680 Speaker 5: but we're going to help you get there and help 635 00:33:12,720 --> 00:33:15,560 Speaker 5: you figure it out. And I think the more conversations 636 00:33:15,560 --> 00:33:18,520 Speaker 5: that families are having with their young people and teaching 637 00:33:18,560 --> 00:33:21,360 Speaker 5: them those saving skills, that's going to help them along 638 00:33:21,400 --> 00:33:24,400 Speaker 5: the way. Get them to a bank or credit union 639 00:33:24,440 --> 00:33:29,160 Speaker 5: that offers some type of child savings club, if you will, 640 00:33:29,400 --> 00:33:33,400 Speaker 5: to teach them about money. It's so vitally important. So 641 00:33:33,440 --> 00:33:36,280 Speaker 5: that would be my parting advice is just talk to 642 00:33:36,320 --> 00:33:39,440 Speaker 5: your children and motivate them, but teach them about money. 643 00:33:40,160 --> 00:33:44,120 Speaker 3: Okay, Gigi kind of nailed it. I love that you 644 00:33:44,320 --> 00:33:48,960 Speaker 3: said talking to your children about their college savings or 645 00:33:49,040 --> 00:33:53,160 Speaker 3: higher education savings. And I would emphasize the point of 646 00:33:53,440 --> 00:33:56,800 Speaker 3: talking to your children or others. Again, it does not 647 00:33:56,920 --> 00:34:00,760 Speaker 3: have to be children. Children in your life, my nieces. 648 00:34:01,280 --> 00:34:04,600 Speaker 3: I have four nieces. I talk to them as often 649 00:34:04,640 --> 00:34:09,839 Speaker 3: as I can. That for your college is not for everyone, right. 650 00:34:10,120 --> 00:34:15,479 Speaker 3: Trades and technical schools are absolutely okay, and I would 651 00:34:15,719 --> 00:34:20,640 Speaker 3: say as equally as important. And associate's degrees are awesome too. 652 00:34:20,880 --> 00:34:24,160 Speaker 3: If we didn't have associate programs, we wouldn't have CNAs 653 00:34:24,440 --> 00:34:28,799 Speaker 3: or graphic design or like early childhood education. That's so 654 00:34:29,200 --> 00:34:32,600 Speaker 3: important and vital to our society. So if I could 655 00:34:32,760 --> 00:34:36,520 Speaker 3: hammer anything into anybody's head is talk about the alternatives 656 00:34:36,560 --> 00:34:39,719 Speaker 3: as well, and talk about the opportunity cost. 657 00:34:39,520 --> 00:34:40,480 Speaker 4: Of the alternatives. 658 00:34:40,800 --> 00:34:43,799 Speaker 3: If you just plan it out, you use the calculators, 659 00:34:43,840 --> 00:34:48,840 Speaker 3: you budget, all options after higher education are good options. 660 00:34:48,920 --> 00:34:52,480 Speaker 3: And also workforce. I know that that's not the intent 661 00:34:52,560 --> 00:34:54,000 Speaker 3: of this podcast. 662 00:34:53,560 --> 00:34:55,200 Speaker 4: But oh it's always part of it. 663 00:34:55,960 --> 00:34:58,560 Speaker 3: Going into workforce from the military is wonderful too. 664 00:34:59,400 --> 00:35:01,600 Speaker 1: Yeah, and Jackie, that is a great point which we 665 00:35:01,719 --> 00:35:04,879 Speaker 1: are going to anyone listening. We are going to dive 666 00:35:04,920 --> 00:35:09,239 Speaker 1: into that exactly in Part two of this kind of 667 00:35:09,280 --> 00:35:13,320 Speaker 1: saving for college or looking at continuing education. Jackie, hopefully 668 00:35:13,360 --> 00:35:15,480 Speaker 1: you will be there to join us as well to 669 00:35:15,480 --> 00:35:18,120 Speaker 1: talk further about that, because you're absolutely right. 670 00:35:18,360 --> 00:35:21,040 Speaker 3: Being an adult it's really fun. 671 00:35:25,400 --> 00:35:26,279 Speaker 4: So I love it. 672 00:35:26,360 --> 00:35:26,960 Speaker 3: I love it. 673 00:35:27,040 --> 00:35:27,440 Speaker 1: I love it. 674 00:35:28,160 --> 00:35:31,520 Speaker 2: I said, I'm going to autune it, and that's the 675 00:35:31,560 --> 00:35:31,960 Speaker 2: new one. 676 00:35:33,120 --> 00:35:35,799 Speaker 1: Thank you so much for joining us today. This has 677 00:35:35,840 --> 00:35:40,000 Speaker 1: been amazing, and yeah, I feel so much smarter and 678 00:35:40,000 --> 00:35:42,520 Speaker 1: maybe I'll start that five two nine for future mollies. 679 00:35:42,600 --> 00:35:44,600 Speaker 2: You can do it more time. 680 00:35:45,080 --> 00:35:47,640 Speaker 5: We're here to help you. Thank you guys so much. 681 00:35:47,680 --> 00:35:49,560 Speaker 5: This was fantastic. Appreciate it. 682 00:35:49,640 --> 00:35:50,680 Speaker 3: Yeah, this was lovely. 683 00:35:51,080 --> 00:35:52,359 Speaker 2: Thank you. This was so much fun. 684 00:35:58,160 --> 00:36:01,760 Speaker 1: Jackie and Robin have shared an enormous amount of information 685 00:36:01,840 --> 00:36:03,319 Speaker 1: with us today, and I want to thank them for 686 00:36:03,360 --> 00:36:05,680 Speaker 1: all of their insights. Here's what I've personally learned from 687 00:36:05,680 --> 00:36:09,520 Speaker 1: our conversation. Start saving now. Both Jackie and Robin recommend 688 00:36:09,560 --> 00:36:11,640 Speaker 1: saving as soon as you can for a child. And 689 00:36:11,760 --> 00:36:14,320 Speaker 1: if you're a graduating high school student, start saving and 690 00:36:14,400 --> 00:36:16,920 Speaker 1: keep saving because if you're going to a four year college, 691 00:36:16,960 --> 00:36:19,680 Speaker 1: your tuition will likely increase every year. Start a savings 692 00:36:19,719 --> 00:36:22,080 Speaker 1: plan now. It can only help you prepare for those 693 00:36:22,120 --> 00:36:25,080 Speaker 1: adjustments each year. A five twenty nine account is usually 694 00:36:25,120 --> 00:36:27,560 Speaker 1: associated with the state you live in, as five twenty 695 00:36:27,640 --> 00:36:30,680 Speaker 1: nine is a tax exempt coding with the IRS, but 696 00:36:30,840 --> 00:36:34,280 Speaker 1: it can be used towards in state, public, out of state, 697 00:36:34,520 --> 00:36:37,960 Speaker 1: or private universities, and even some vocational schools. Just make 698 00:36:38,000 --> 00:36:40,720 Speaker 1: sure that you check the US Department of Education's website 699 00:36:40,719 --> 00:36:44,040 Speaker 1: to make sure that whatever institution you're going to is accredited. 700 00:36:44,239 --> 00:36:46,719 Speaker 1: If they're accredited, you can use a five twenty nine. 701 00:36:47,040 --> 00:36:49,719 Speaker 1: Ask your company's HR to see if your employer will 702 00:36:49,760 --> 00:36:52,680 Speaker 1: match your five twenty nine contributions. When it comes to 703 00:36:52,719 --> 00:36:55,760 Speaker 1: special occasions that often result in gift giving, ask family 704 00:36:55,760 --> 00:36:58,280 Speaker 1: and friends to contribute to your five twenty nine instead. 705 00:36:58,719 --> 00:37:02,600 Speaker 1: You can create a nine account for anyone, and you 706 00:37:02,640 --> 00:37:05,000 Speaker 1: can change the beneficiary of your five to two nine 707 00:37:05,000 --> 00:37:07,600 Speaker 1: account at any time. You just need to make sure 708 00:37:07,600 --> 00:37:10,440 Speaker 1: that the new beneficiary is a family member of the 709 00:37:10,480 --> 00:37:13,359 Speaker 1: former beneficiary. If you're going to take out a loan 710 00:37:13,400 --> 00:37:16,960 Speaker 1: to pay for college, Robin recommends exploring federal loans first. 711 00:37:17,480 --> 00:37:20,759 Speaker 1: Don't forget to reapply for financial aid every year you 712 00:37:20,840 --> 00:37:23,880 Speaker 1: are in school. Most importantly, if you don't use everything 713 00:37:23,920 --> 00:37:26,200 Speaker 1: in your five twenty nine, that's Okay, there are a 714 00:37:26,280 --> 00:37:28,600 Speaker 1: few options to get that money out. That's it for 715 00:37:28,600 --> 00:37:31,840 Speaker 1: today's episode. Matt, how do you feel about saving for 716 00:37:31,920 --> 00:37:32,400 Speaker 1: your future? 717 00:37:32,440 --> 00:37:37,400 Speaker 2: Bibet, Nope, still don't like that plic It's still a 718 00:37:37,560 --> 00:37:41,840 Speaker 2: little scary given how expensive school will be by that point. 719 00:37:41,880 --> 00:37:44,279 Speaker 2: But I'd also say it'd be lying if I'm not 720 00:37:44,360 --> 00:37:47,480 Speaker 2: going to strongly encourage them to explore in state public 721 00:37:47,600 --> 00:37:48,839 Speaker 2: universities for real. 722 00:37:48,960 --> 00:37:51,359 Speaker 1: But let's talk about where this grown Up Stuff train 723 00:37:51,520 --> 00:37:52,440 Speaker 1: is heading next. 724 00:37:52,800 --> 00:37:56,520 Speaker 2: The train is actually not stopping. We're continuing on talking 725 00:37:56,600 --> 00:37:59,840 Speaker 2: about education. Jackie and Robin will join us again for 726 00:37:59,840 --> 00:38:02,200 Speaker 2: the next episode, but this time we're going to look 727 00:38:02,239 --> 00:38:05,120 Speaker 2: at all of your post high school options, from vocational 728 00:38:05,200 --> 00:38:08,479 Speaker 2: schools to graduate schools, everything in between, and we'll find 729 00:38:08,480 --> 00:38:10,440 Speaker 2: out how the five twenty nine savings account can help 730 00:38:10,440 --> 00:38:11,160 Speaker 2: finance them all. 731 00:38:11,280 --> 00:38:14,000 Speaker 1: Amazing, But I got to say something tells me I'm 732 00:38:14,080 --> 00:38:15,960 Speaker 1: gonna be upset and really wish that I knew about 733 00:38:15,960 --> 00:38:18,680 Speaker 1: the five twenty nine plan before I went to grad school. 734 00:38:18,840 --> 00:38:22,320 Speaker 2: Spoiler alert, you will. But we'll talk about it all 735 00:38:22,360 --> 00:38:24,600 Speaker 2: and more in two weeks on the next episode of 736 00:38:24,680 --> 00:38:26,120 Speaker 2: Grown Up Stuff. How do adult? 737 00:38:27,120 --> 00:38:29,160 Speaker 1: And remember you might not be a graded in life, 738 00:38:29,239 --> 00:38:31,960 Speaker 1: but it never hurts to do your homework. This is 739 00:38:32,000 --> 00:38:34,800 Speaker 1: a production from Ruby Studios from iHeartMedia. 740 00:38:35,040 --> 00:38:37,319 Speaker 2: Our executive producers are Mally Soshia. 741 00:38:37,280 --> 00:38:40,680 Speaker 1: And Matt Stillo. This episode was engineered by Matt Stillo. 742 00:38:40,560 --> 00:38:43,880 Speaker 2: And written by Malli Sooshia. Special thanks to the Ruby 743 00:38:43,920 --> 00:38:48,400 Speaker 2: team including Eden Fixel, Rachel Swan, Krasnov, Ambry Smith, Nikkia Swinton, 744 00:38:48,520 --> 00:38:57,120 Speaker 2: Sierra Kaiser, Sierra Spreen, and Andy Kelly.