What is College Savings Day?

Hey there, savvy savers! May 29th is College Savings Day (or 529 Day), and it’s all about getting a jump start on saving for college. Think of it as a yearly nudge to remind you to stash away some cash for your kid’s future. And why May 29th? This day, cleverly chosen to correspond with the 529 college savings plan—your secret weapon in the battle against sky-high tuition costs!

The Rising Costs of College

Let’s talk numbers! In 2024, the average annual tuition and fees are $11,260 for in-state students at public colleges and $29,150 for out-of-state students. If you’re looking at private colleges, the average tuition and fees are a whopping $41,540​ (College Tuition Compare)​​ (CollegeData)​. Add in room, board, and other expenses, and the total cost can be quite daunting. But don’t worry, with a little planning and some savvy saving, you can make it happen!

How to Plan Ahead for College

College can be expensive, but planning ahead can make it more manageable. From savings plans to financial aid, here are key options to consider:

Financial Aid & Student Loans
Explore financial aid through your college’s office or online tools like the Department of Labor’s free scholarship search. TFCU partners with Sallie Mae® to offer student loans with:

• Competitive interest rates
• Multiple repayment options
• No origination fees; no prepayment penalty
• Smart Option Student Loan® for Undergraduate Students
• Parent Loans

College Savings Options

Start saving early with these flexible plans:

• 529 College Savings Plans: These plans are like the superheroes of college savings. They grow tax-free and can be used for a variety of education expenses.
• Coverdell Education Savings Accounts (ESAs): Think of these as 529 plans’ cute little cousins. They come with lower contribution limits but are still tax-friendly.
• Savings Bonds: Good old savings bonds are a safe bet and can be tax-free if used for education.
• Custodial Accounts (UTMA/UGMA): These accounts let you put away assets for your child, which they can use when they reach adulthood.
• Regular Savings Accounts: They might not come with tax perks, but they’re straightforward and flexible.

By combining savings and financial aid, you can ease the cost of college. The Family Credit Union is here to help—reach out today to learn more!

How Much Can You Save by Setting Aside $100 a Month?

Having a savings account is an essential step in building a secure financial future. After landing your first job, make it a habit to set aside a percentage of your income into savings each month. It doesn’t have to be a large amount, but the goal is consistency. Over time, this small habit will grow, and you’ll have a financial cushion for emergencies. Whether you need money for unexpected college costs or a future trip, saving regularly gives you peace of mind and prepares you for life’s surprises.

Let’s do some math! If you start saving $100 a month from the time your baby is born until they turn 18, you’ll have a nice chunk of change waiting for them. Assuming an average annual return of 6%, you’d save about $38,000. Here’s the breakdown:

• Monthly Savings: $100
• Years of Saving: 18
• Total Contributions: $21,600
• Estimated Future Value: ~$38,000

That’s a solid start toward covering those college costs, all thanks to the magic of compound interest!

The Family Credit Union offers great savings account options for students, allowing you to start building your financial foundation as you transition into college life. The earlier you start saving, the more financial security you’ll have down the road!

Additional Tips for Success in College

In addition to your financial planning, here are a few more tips to help you succeed in your college journey:

• Stay Organized: Keep track of important dates like tuition deadlines, assignment due dates, and exams. Staying organized can help you avoid unnecessary stress.
• Live Within Your Means: Avoid taking on too much debt. It may be tempting to splurge, but managing your expenses and avoiding unnecessary purchases will help you avoid financial strain.
• Consider Campus Resources: Many colleges offer free financial counseling, budgeting workshops, or student discounts. Take advantage of these resources to stretch your budget further.
• Invest in Experiences: While it’s important to save, don’t forget to allocate some of your budget for experiences like studying abroad or attending campus events. These moments will enrich your college life.

How The Family Credit Union Can Help with College Savings

We’re here to make your college savings journey as smooth as possible. Here’s how:

1. Savings Accounts: Open a savings account specifically for college savings. Watch your money grow!
2. Financial Coaching: TFCU’s free Financial Wellness service offers personalized guidance to help you budget, build credit, and reach your money goals.
3. Student Loans: Our student loans are designed for the needs of undergraduates and graduate students.
4. Financial Education: Check out our fun and informative resources like Banzai and Zogo to learn all about saving and budgeting.
5. College Scholarships: See our list of potential college scholarships to apply to.
6. Coverdale Education Savings: This account allows for saving for a child’s education expenses through nondeductible contributions, offering the potential for tax-free withdrawals..

College Savings Day is your yearly reminder to get serious about saving for college, but it doesn’t have to be a chore. With the right strategies and the support of The Family Credit Union, you can make saving fun and effective. Start today, and give your child the gift of a brighter future. Happy saving!

Are you a senior in high school? Are you considering going to college in the fall? Now is the time to look for scholarships and start applying for them! Some schools will provide you a list of scholarships that are available. Many local businesses have a scholarship fund, as well. In fact, we here at The Family Credit Union are proud to offer a handful of scholarships to students who are looking to further their education. Check out our page where we have our available scholarships listed.

If you are a member of our credit union, or have a member of your family that is a member of our credit union, you can apply for these scholarships. Especially consider looking into these scholarships if you are attending the University of Iowa or have Hispanic heritage. There are other scholarships that you may qualify for, so please apply before the deadlines in April! Submit your applications by email or to a Family Credit Union branch in person.

Other Financial Solutions for Students

For those who are looking for other payment solutions, Family Credit Union also offers student loan options. The Smart Option Student Loan features and benefits:

• Multiple in-school repayment options plus a choice of competitive fixed and variable interest rates provides even more flexibility
• No origination fees and no prepayment penalty
• Rewards and interest rate reductions available
• Rates that reward creditworthy borrowers
• Applying with a creditworthy cosigner may help you qualify and/or receive a lower rate
• 100% US-based Student Loan Specialists

Contact us today to learn more about these student financial help solutions! We want to help you succeed.

How will I pay off my student loans? How long will it take me to pay back my student debt? These questions may run through your mind often. With the cost of education continually rising, it is no wonder people are worried about how they will pay for education. According to studentloanhero.com, With over 43 million American borrowers, they owe over $1.74 trillion in student loan debt. Whether you are just starting college, just graduated, or have been out of school for a while, consider these tips to help pay off your student loan quicker.

Make An Extra Payment

Making an extra student loan payment each month is a great start to paying off your debt faster. Your extra payment can be of any amount. Remember that a little adds up. It is important to pay at least the minimum each month. Every few months, you can consider making an extra payment. Make sure to let your lender know that the additional money you are paying will be going towards an extra payment and specify that it is for principal only. This will limit the amount of interest that adds up. Without this step, your lender may hold the extra payment and add it to the following month’s payment. While this may not seem like a bad option, it turns out that you will be paying more interest.

Refinance Your Student Loans

Refinancing student loans is a great way to help pay off your debt faster. So why should you refinance? Refinancing helps to lower the interest rates, allowing more of your payments to go towards your student loans. One option you can choose is to refinance multiple student loans. This will give you one consolidated loan that has one monthly payment. You can also choose to refinance only one loan for a lower rate. It is important to refinance loans where you will be able to decrease your interest rates.

Pay More Than The Minimum

If you are able to, paying more than the minimum payment each month is a good idea. You can pay the minimum payment with no penalty. Since interest is always accruing on your principal balance, paying more than the minimum can help reduce the cost of your student loans. Use the repayment estimator to find out your estimated payments HERE.

Lump-Sum Student Loan Payment

Whenever you receive a bonus or tax refund, it is a wise idea to apply a large chunk of it towards the principal of your student loan payments. It is a great way to help decrease your student loan payment for the future.

The Family Credit Union

If you or your child is just getting started with college, The Family Credit Union located in the Quad Cities offers a private student loan program to help pay for additional college expenses. They also offer local scholarships you can apply for. The Family Credit Union is here to help you or give you advice on all of your educational expense needs.

Paying for college can feel overwhelming, but it doesn’t have to be. Sallie Mae created a helpful strategy called the 1-2-3 Approach to Paying for College. It breaks things down into three simple steps — and at The Family Credit Union, we’re here to walk you through each one.

Step 1: Use Money You Don’t Have to Pay Back

Start by using funds that won’t need to be repaid.

• Savings
  If you or your family have set aside money in a college savings account, this is the best place to begin.

• Scholarships
  Scholarships are free money awarded based on things like grades, talents, interests, heritage, or even your parents’ employer. Start applying early and apply often!

• Grants
  These are typically awarded based on financial need and don’t need to be repaid. To qualify, fill out the Free Application for Federal Student Aid (FAFSA). One of the most common grants is the Pell Grant.

• Work-Study Programs
  Work-Study Programs The federal and state governments, and sometimes the school itself, fund work-study programs. The programs consist of part-time jobs that allow the students to earn money for education expenses. As it is a real job and paycheck, there is no need for repayment.

Step 2: Explore Federal Student Loans

If you need more help after using savings, scholarships, and grants, look at federal student loans. Start by filling out the FAFSA.

There are two main types:

• Direct Subsidized Loans – Based on financial need. The government covers the interest while you’re in school.

• Direct Unsubsidized Loans – Available to all students, regardless of need. Interest starts building right away.

The student who has the student loan has the responsibility to repay federal student loans.

Step 3: Consider Private Student Loans

If there’s still a gap in funding, a private student loan might help. The Family Credit Union offers the Smart Option Student Loan by Sallie Mae. This loan helps cover college costs that aren’t paid for by scholarships, grants, or federal loans.

Key features:

• Borrow up to 100% of the school-certified cost of attendance

• No origination fees or prepayment penalties

• Choose fixed or variable rates

• Graduate students may qualify for even lower interest rates

• Quick and easy application — takes about 15 minutes

You’ll need to be attending a degree-granting school, and depending on your credit, you may need a cosigner.

Encouraging responsible borrowing

We encourage students and families to supplement their savings by exploring grants, scholarships, federal and state student loans, and to consider the anticipated monthly payments on their total student loan debt and their expected future earnings before considering a private education loan. Questions about paying for college? The Family Credit Union is here to help!

It’s the Beginning of a New Year

As a fresh year begins, it’s the perfect time to make a New Year resolution that can set you up for a successful future. Whether your goal is to go back to school, buy a car, take a trip, buy a home, or tackle debt, we’re here to help you achieve each one. With our variety of loans, savings accounts, and financial coaching, you’ll have the support you need to make a year of real progress.

Going Back to School?

College isn’t just a time investment, it’s a financial investment as well. We can help you along. We offer private student loans for the costs that aren’t covered by financial aid. These private loans come with a variety of benefits including no prepayment penalties, interest rate reductions for certain loan borrowers, and lower rates when signing as a creditworthy borrower or cosigning with a creditworthy borrower. These loans are a great option for someone looking to further their education in the new year.

Getting a Car?

Your resolution this year could be to work towards getting a new car. We can help you with a vehicle loan. The Family Credit Union has vehicle loans available for new or used autos, boats, motorcycles, or recreation vehicles. So even if it’s not a car, but a boat or motorcycle, we are here to help. Qualified pre-approvals make it easy for you to get a better arrangement with the dealer knowing you have the cash up front. We’ll help you achieve your goal. Just give us a call today and tell us how we can help you.

Ready to Buy a Home or Tackle Debt?

Homeownership and debt management can feel daunting, but our team is here to make these goals more achievable. With mortgage options and debt consolidation loans, we provide flexible solutions that fit your budget. For a more hands-on approach, our financial coaching services can guide you in budgeting, planning, and creating a strategy to help you meet your financial goals.

Financial Coaching for Every Goal

If you’re unsure where to start, our financial coaching services are available to help you map out a plan. We can provide personalized guidance for managing debt, improving your credit, saving strategically, or achieving any other financial goal. Financial wellness is about more than just accounts—it’s about making informed choices that bring you peace of mind throughout the year.

Make the Most of This Year’s Resolutions

The Family Credit Union offers tools and resources for building a financially secure future. Contact us today to get started on your journey to a successful year.