With a high income, it probably will be difficult for a doctor’s child to qualify for student aid. But there are ways to save for your child’s education that can also provide you with tax breaks. For instance, 529s are a great resource. Opening a 529 allows you to use after-tax money that can grow inside the account tax-free, and if you use that money on legitimate college (or med school) expenses, it comes out of the account tax-free.
But when thinking about sending your child to college, here’s something else to remember: There is little reason for any student to have student loans when finishing a bachelor’s degree, especially the child of a physician. Certainly, there is no reason for the physician to take on additional debt to pay for school. If the college cost cannot be covered with savings and a 529, the earnings of the child, and the earnings of the parent, consider choosing a less expensive school.
Financial Planning for College Education
Understanding UMGA & UTMA Accounts
Ways to Lower the Cost of College
How 529 Plans Are a Fantastic Tax Break