Jaime is starting school to become an electrician. He has some savings, but he’s worried about how he’ll pay for tuition without taking out loans.
Jaime has a few options to help pay for his schooling. Along with his savings, if his school is eligible for federal student aid, he should complete the Free Application for Student Aid (FAFSA). This application will determine what federal educational aid he qualifies for, like grants and scholarships.
If someone could fund a 529 college saving plan for Jaime, that money would be eligible to pay trade school tuition and fees. It can also be used for purchasing required textbooks and computer software. But he’s limited to withdrawing a maximum of $10,000 per year tax-free.
Jaime should search for vocational scholarships. Many schools and industry-specific companies and trade unions sponsor scholarships to attract recruits to the field. Scholarships are typically based on merit, including academics and community involvement.
Client Profile is based on a hypothetical situation. The solutions discussed may or may not be appropriate for you.