Calculating The Cost Of A California 529 Plan
Unlike public elementary and secondary schools, public universities and colleges aren't funded totally by tax dollars and may actually be funded very little by such. However, state-run colleges and universities are one of the best bargains around, especially for students that live in that state.
Any state subsidy, no matter how small, is better than no state subsidy for keeping costs down, and this is reflected in the size of tuition bills. For instance, for the University of California, Los Angeles, tuition for an in-state student was an average of $4,225 per year. For an out of state student, the cost was substantially higher at $15,886 per year.
Public education may be a U.S. cornerstone, but the vast network of private schools is available at every level, for those who can afford to pay. And because no college education is free (unless you look at the U.S. military academies where the payment is in kind), all schools that don't rely on public subsidies are referred to as "private".
Private universities can refer to various types of institutions throughout the country. Each of these colleges and/or universities offers a unique educational opportunity, as well as a unique tuition cost.
California offers its own version of a 529 savings plan called the Golden State ScholarShare College Savings Trust (invest directly with state). Here are key variables of this plan:
1. Qualified educational expenses for postsecondary education
2. TIAA-CREF Tuition Financing, Inc.
3. Choice of age-based and static professionally managed investment funds
4. Variable - depend on market conditions and funds chosen
5. Any U.S. 2 and 4 year college and university, postsecondary trade and vocational school, and graduate and professional school that is eligible for federal financial aid
6. Open enrollment; join at any time
7. Distributions used for qualifying educational expenses are state and federally tax-exempt, subject to 2010 sunset provision. 2.5% California penalty assessed to earnings from non-qualified distributions.
8. Both residents and nonresidents
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