Life Insurance for College Funding

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Explore how life insurance can help fund college expenses. Learn valuable strategies for securing your child's education today. Visit SafeMoney.com. It probably wouldn’t surprise you to learn that the cost of college tuition has gone up since back in the day when you got your degree. But how much college tuition has climbed may surprise you. According to the College Board’s “Trends in College Pricing 2017” report, students at public four-year institutions paid an average of $3,190 in tuition for the 1987-1988 school year, with prices adjusted to reflect 2017 dollars. Fast-forward 30 years and that average is $9,970 for the 2017-2018 school year. If you weren’t a math major, don’t worry, we have a calculator. That’s an eye-popping 213% increase. And that is not even taking into consideration the increased cost of room and board, not to mention everything else that causes the college cash register to keep ringing. Every Option on the Table It’s no surprise then that families looking to help their college-bound kids fund higher learning consider all tools at their disposal. Naturally, scholarships are at the top of any parents’ wish list. According to a 2017 survey from Sallie Mae, close to half of students received some kind of scholarship in 2016. The report says that scholarships and grants, which do not have to be repaid, covered about 35% of the college bill for the average family. And colleges and universities aren’t the only sources for scholarships. While 87% of students received their 2016 scholarship from their college, 75% cited private sponsors and community groups. Meanwhile, 65% said they received money from a state program. In addition to scholarships, loans, income, and savings were the most common sources of college funding. 529 Plans Give Two Options The best-known college savings vehicle is the 529 plan. Similar to how qualified retirement plans are treated, a 529 account is a tax-advantaged savings plan designed to encourage saving for future college costs, according to an introduction published online by the U.S. Securities and Exchange Commission. Legally known as “qualified tuition plans,” they are authorized by Section 529 of the Internal Revenue Code. They are sponsored by states, state agencies or edu