Some students are lucky enough to have money of their own to contribute to college tuition, and even luckier if they can get help from their parents and grandparents as well. There are a number of ways that grandparents can put away some money toward helping their children’s children pay for college. You might have heard of trust funds, and 529 plans, but one of the best options is quite a bit simpler than that: a CD. No, not a “compact disc” but a “certificate of deposit.” A CD account is essentially a savings account with a fixed term and a fixed interest rate. If you are lucky enough to have grandparents who are willing to help you pay for college, a CD can be one of the best options because these accounts are almost risk-free. In addition, if the account is in the grandparent’s name, it does not need to be included on the FAFSA! One of our new forum members shared his experience on the Financial Aid Forums this week.
We discuss topics like this and other financial aid secrets on FAFSA Online.
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