RE: college costs

[Robert <http://dummy.us.eu.org/robert>]

 > From: ", Flora" <http://www.state.vt.us/~Flora.>
 > Date: Sun, 1 Jun 2014 17:23:55 +0000
 >
 > What about opening a 529 plan? I'm not sure exactly how it would work, but you 
 > could open one for each Nick and Xander as a beneficiary. It could then be used 
 > to help pay for their college when they graduate.

According to

 http://en.wikipedia.org/wiki/529_plan#Gift_tax_considerations ,

it looks like it would be subject to the same tax restrictions as a
"gift", unless Alex and/or Nick were attending the college in Ca.
That would, then, limit the loan to $14,000/year.

The alternative would be to set up a "pool loan", as I said before:

 http://www.thefiscaltimes.com/Articles/2013/07/16/How-A-Family-Loan-Pool-Helps-With-College-Costs

In that case, there's essentially a 1.4% premium (which is a lot less than
taxing the full amount).  (1.4% is the inflation rate; the interest is
essentially pegged to the inflation rate.)

Does my analysis seem correct to you?

What do you think?

 > https://www.nysaves.org/content/home.html
 > 
 > https://www.scholarshare.com/
 > 

 > Cc: http://www.gmail.com/~flora; Noelle; http://profiles.yahoo.com/flora
 > Subject: RE: college costs
 > 
 > To: ", Flora" <http://www.state.vt.us/~Flora.>
 > 
 > I tried a cursory search on the web to see if there were tools, but I
 > didn't see anything like this.
 > 
 > But, like my other email said, getting "outside help" from family members
 > can complicate matters.