Ways to Save
Families now have more ways to save for their children's college education. If you have any questions about how savings may affect your eligibility for financial aid, see your tax adviser or financial aid administrator. You'll find college savings and financial aid calculators on the following websites:
State 529 Plans
With state-sponsored 529 college savings plans, contributions grow tax-free until at least 2010 (when Congress must renew the rule) as long as the money is used for qualified college expenses. For links to all of the state 529 plans, go to 
www.collegesavings.org, the website for the College Savings Plan Network, an affiliate of the National Association of State Treasurers.
New Independent 529 Plan
The new Independent 529 plan, which started in September 2003, allows parents to pay for tuition at today's prices for a number of independent colleges. For more information, go to www.independent529plan.org.
Coverdell Education Savings Account
The Coverdell Education Savings Account, formerly known as the Education IRA, lets families invest up to $2,000 per child per year. Earnings and withdrawals are tax-free if used to pay for qualified college and K-12 school expenses. These accounts have income limits. Parents and students can also save their earnings in Roth IRAs, traditional IRAs and interest-bearing accounts to pay for college costs.
Shop and Save
With UPromise and Babymint, families can save for college while shopping. These two programs offer rebates for purchases that can be deposited into a college savings plan. For details, go to www.upromise.com and www.babymint.com.
