Page 15 - Fall Arkansas Bound 2020

Get schooled on education savings plans
University of Arkansas at Pine Bluff
1200 N. UNIVERSITY DRIVE | PINE BLUFF WWW.UAPB.EDU | 870-575-8000
Accounts to pay for college or even private high schools can be a smart way for parents to prepare for their children’s futures. Not every account is the same, and certain savings accounts could affect financial-aid eligibility and taxes. It is in parents’ and students’ best interest to educate themselves on the various education savings plans available to them — and which ones make the most sense for their families.
Families should do their research and work with professionals who understand the subtleties of school savings plans. For example, according to Cappex.com, a college information site, students’ income and savings have a larger, more negative impact on the availability of financial aid than the portion of their parents’ assets factored into the equation. Students with sizable savings accounts in their name may end up adversely affecting their financial-aid eligibility. A financial adviser and loan expert can advise families on these confusing financial facts.
529 College Savings Plan
529 accounts are a popular education savings plan. They operate in a similar fashion to IRA and 401(k) plans in that savings for education are earned tax-free through investment opportunities. Sallie Mae states that 529 plans are offered by states or educational institutions un- der Section 529 of the Internal Revenue Code. These tax-advantaged plans gener- ally have no income limitations and high contribution limits. The usage of funds in 529 accounts are subject to regulations.
Coverdell Education Savings Account
Coverdell accounts are versatile in that they enable the money to be spent for elementary through college education, which is a larger range than other plans. This is another tax-free plan when used for school purposes. Coverdell contributions are capped at $2,000 per year, and they’re only available to families below a specified income level, states the resource SavingforCollege.com.
Uniform Gifts to Minors Act Account
These accounts are not traditionally designed for education but can be established to offer gift assets to minors. The custodian of the account can sell the assets for the child’s benefit at any time, and once the child reaches 18 or 21,
The University of Arkansas at Pine Bluff’s distinguished alumni include a NASA aerospace engineer, a Milken Educator Award winner, a world-renowned visual artist, a Grammy Award- winning musician and the pioneer of kidney transplantation.
Saving for college can be confusing, but there are many plans available for parents to help invest in their children’s education.
recipients can use the funds in whatever manner they choose. However, UGMA may affect financial-aid eligibility.
Roth IRA
Parents can open up a Roth IRA in their child’s name once the child begins earning income. Even though there are penalties for taking earnings out before the age of 59.5, exceptions include purchasing a first home or qualified education expenses. A Roth IRA isn’t subjected to legal and administrative fees that can come with trusts, which are another savings avenue.
Parents can help finance their children’s educations through various savings plans. A financial adviser may shed more light on which products are best for families.
— Courtesy of Metro Creative
OVERVIEW
Opportunity and access are the foundation of the University of Arkansas at Pine Bluff educational experience. Since its inception, UAPB has educated and inspired some of the world’s greatest minds to reach beyond their circumstances and become whom they want to be. UAPB’s designation as one of only two land-grant institutions and the only land-grant Historically Black College or University in Arkansas means that the school’s mission to serve a diverse student population and foster learning, growth and productivity will never change. Core values of empowerment and accountability drive the tight-knit community of educators and learners. Strong support from faculty and administration and the familial atmosphere create the optimal environment for student success. In fact, more students are choosing UAPB every day; its fall 2020 undergraduate enrollment increased by 57.8 percent and graduate enrollment by 39 percent. Moreover, the university’s student success programs help students stay enrolled, leading to retention rates that are among the highest in the state.
ACADEMICS
Students who attend UAPB gain an exceptional education, a culturally relevant learning experience and exposure to growth opportunities beyond the classroom. As a leading land-grant, research-focused Historically Black College or University, UAPB provides students with access to more than 40 undergraduate, graduate and doctoral programs, including agricultural engineering, nursing on both the generic and RN (registered nurse) to BSN (Bachelor of Science in Nursing) tracks, hospitality and tourism management, a Master of Science in addiction studies, a Master of Education with emphasis in educational leadership and a doctorate in aquaculture/fisheries. The
• The University of Arkansas at Pine Bluff is ranked second for best value by Best Value Schools.
• Arkansas’ only Master of Science in Addiction Studies is now offered online to increase substance- abuse professionals in the Delta.
• The University of Arkansas at Pine Bluff is the only institution in the state that offers a full program in aquaculture/fisheries from the undergraduate to doctoral levels.
@UAPB @UAPBRecruitmentOffice @UAPBLionsRoar
department of industrial technology management and applied engineering has a job-placement rate of more than 90 percent for graduating students. Additionally, students have myriad opportunities for studying abroad through the school’s Office of International Programs and Studies.
AFFORDABILITY AND SCHOLARSHIPS
UAPB consistently ranks as one of Arkansas’ most affordable institutions and reduces the burden on continuing students through programs funded through the generosity of alumni. The university also awards $6.3 million in scholarships annually to first-time entering freshmen and transfer and continuing students.
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