Education Planning

With education costs continuing to rise faster than inflation, many families and students face the challenge of accumulating significant debt to fund higher education. The best time to prepare for these expenses is before they arrive. Our Education Planning strategies help you create a proactive, tax-efficient approach to funding college, private school, or future academic goals. An experienced financial advisor can help identify the right education savings vehicles—such as 529 plans, custodial accounts, and other strategic funding options—so you can work toward your goals with confidence while minimizing unnecessary financial burden.

Education Planning | Boyer Financial Services

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Education
Planning

From private school tuition to graduate school and beyond — rising education costs don't have to mean rising debt. With the right plan and enough runway, we can help your family fund it all.

Schedule a Free Consultation All Services

+179%

Tuition Increase Since 1990

$1.7T

US Student Loan Debt Outstanding

18 yrs

Maximum Planning Runway from Birth

Our Goal for Your Student Loan Debt

The Challenge

Education Costs
Are Rising Fast.

Education planning covers a wide array of meanings for our clients. From private or religious school to higher education — college, graduate school, and professional programs — the rising costs of funding a student's attendance can put a considerable financial strain on your family.

The good news: with enough time to plan, we can potentially negate the need for student loans or debt accumulation entirely. The key is starting early, selecting the right funding vehicles, and coordinating those strategies as your child moves through each phase of their education.

Every family's situation is different — income levels, tax circumstances, the number of children, the type of institution — and our approach reflects that. We go deep on the details so that the strategy is truly built around your family, not a generic template.

Plan Early. Fund Fully.

Funding Strategies

Three Phases,
One Cohesive Plan

Our education funding strategies are organized around the three distinct phases of a student's journey. Each phase has its own set of tools, tax rules, and coordination considerations — and how you move between them matters enormously to the outcome.

Phase 01

The Funding Years

UGMA / UTMA Accounts

Uniform Gifts/Transfers to Minors Act accounts allow assets to be transferred to a minor without the need for a trust. Funds can be used for any purpose — not just education — giving flexibility beyond designated accounts.

Applicable through age 24. Subject to the Kiddie Tax — unearned income above the threshold is taxed at the parent's rate. Not suitable as a holding vehicle for other education accounts.

Series EE / I Education Bonds

U.S. Savings Bonds issued in the parents' names that may be redeemed federally tax-free when used for qualified education expenses. A straightforward, low-risk savings tool with meaningful tax advantages for families who qualify.

Must be owned by the parents — not held in a UGMA/UTMA. Tax exclusion is income-limited and phases out at higher income levels. Subject to coordination rules.

Coverdell Education Savings Account (ESA)

A tax-advantaged account that allows investment growth and tax-free withdrawals for qualified education expenses — including K–12 private school tuition, not just college. Offers more investment flexibility than a 529 in many cases.

Annual contributions capped at $2,000 per beneficiary. Income limits apply for contributors. Funds must be used by age 30 or transferred to another family member.

Qualified Tuition Plans (529 Plans)

The most widely used education savings vehicle — offering tax-deferred growth and tax-free withdrawals for qualified expenses. Two structures exist: college savings plans (investment-based) and prepaid tuition plans (lock in today's tuition rates at participating institutions).

Superfunding allowed: up to 5 years of annual gift tax exclusions may be contributed in a lump sum. Subject to gift tax election rules. Unused funds can now be rolled into a Roth IRA for the beneficiary under certain conditions (SECURE 2.0).

2503(c) Minor's Trust

A trust established for a minor that qualifies contributions as a present-interest gift, allowing the annual gift tax exclusion to apply. Assets are managed by a trustee and must be distributable to the beneficiary at age 21 — or can continue with the beneficiary's consent.

Useful when larger sums need to be transferred to a minor with greater control than a UGMA/UTMA. Works well in conjunction with other education funding vehicles.

Early Tax Efficiency Planning

The funding years are when the most powerful compounding — and the most impactful tax planning — takes place. We evaluate which accounts to fund first, how to sequence contributions across multiple children, and how to balance education funding against other long-term goals.

Coordinating account types early can meaningfully reduce tax drag over an 18-year accumulation window. Every dollar of unnecessary tax is a dollar not compounding for your child's future.

Phase 02

The College Years

American Opportunity Credit

A federal tax credit of up to $2,500 per year for the first four years of higher education. 40% of the credit is refundable — meaning it can produce a refund even if no tax is owed. One of the most valuable education tax benefits available to families who qualify.

Income limits apply. Cannot be claimed in the same year as a tax-free 529 distribution for the same expenses — coordination is essential.

Lifetime Learning Credit

A credit of up to $2,000 per tax return (not per student) for qualified tuition and fees. Unlike the AOC, it is not limited to the first four years and applies to any level of post-secondary education — including graduate courses and professional development.

Non-refundable. Subject to income limits and coordination rules with other education benefits. Cannot be combined with the AOC in the same tax year.

Education Account Distributions

Coordinating distributions from 529 Plans and ESAs during the college years requires careful planning. Withdrawals must be matched to qualified expenses in the same tax year, and over-distribution can trigger taxes and penalties. We manage this sequence so you never leave money on the table — or trigger an unintended tax event.

Subject to coordination rules with tax credits. Timing and sequencing of distributions across multiple accounts can significantly affect the net cost of attendance.

Grants, Loans & Financial Aid

Understanding how your assets and income affect the FAFSA and CSS Profile is critical to maximizing need-based aid eligibility. We help families think through asset positioning — which accounts count against you, which don't, and how the timing of distributions affects your Expected Family Contribution.

529 plans owned by parents are treated more favorably than student-owned assets on the FAFSA. Grandparent-owned 529s have specific rules under the updated FAFSA formula.

Gifts & Family Contributions

Direct tuition payments made by grandparents or other family members directly to an educational institution are excluded from gift tax — with no limit on amount. This is one of the most powerful and underutilized strategies for multigenerational education funding.

Payments must go directly to the institution to qualify for the tuition exclusion. Cash gifts to the student or parent do not qualify for the same exclusion.

Student Earnings & Work Study

A student's own earnings — from part-time work, work-study programs, or summer employment — can be a meaningful and tax-advantaged contribution to education costs. We help families think through how student income interacts with the Kiddie Tax, aid eligibility, and overall funding strategy.

Student-earned income is generally taxed at the student's rate (typically low). After age 24, Kiddie Tax no longer applies, making student earnings more efficient.

Phase 03

The Graduate Years

529 Plan & ESA Distributions

529 Plans and ESAs can be used for qualified graduate school expenses — including tuition, fees, books, and required supplies. Coordinating these distributions with available graduate-level credits and deductions ensures every dollar works as hard as possible.

Subject to coordination rules with other education benefits. Distributions must match qualified expenses in the same tax year to avoid penalty.

Stafford Loans

Federal direct loans available to graduate students — both subsidized and unsubsidized — with fixed interest rates and a range of repayment options including income-driven plans. When borrowing is necessary, Stafford Loans are typically the lowest-cost and most flexible option available.

Graduate students are eligible for up to $20,500 per year in unsubsidized Stafford Loans. Interest accrues during school. Loan forgiveness programs may apply in qualifying professions.

Fulbright & Merit Scholarships

Competitive scholarship programs — including the Fulbright Program — can fund graduate-level study domestically and internationally. We help families understand how scholarship income interacts with other funding sources, and whether any portion is taxable under current IRS rules.

Scholarship amounts used for tuition and required fees are generally tax-free. Amounts used for room, board, or non-required expenses may be taxable as ordinary income.

Why It Matters

The Real Cost of
Waiting to Plan

The single most powerful variable in education funding is time. A family that begins planning at birth has 18 years of compound growth working for them. A family that waits until high school has 4 — and is often forced into loans, liquidation of other assets, or both.

College tuition has increased by nearly 179% since 1990 — far outpacing inflation. Private K–12 education adds another layer. Graduate and professional school can add hundreds of thousands more. The families who navigate this without debt are almost always the ones who planned early and planned well.

Our job is to make sure that's you.

Start at Birth — Maximum Runway

18 years of compounding in a 529 Plan or ESA can potentially fund a significant portion of a 4-year degree with modest monthly contributions. Time is the variable money can't replace.

Private K–12 Tuition is Fundable Too

Since the 2017 Tax Cuts and Jobs Act, 529 Plans can be used for up to $10,000 per year in K–12 tuition at private or religious schools — making early funding even more valuable for families considering this path.

Coordination is Everything

Using the wrong account in the wrong year — or taking a distribution that disqualifies a tax credit — can cost thousands. Our process ensures every move is coordinated across your full tax picture.

Unused 529 Funds? Not a Problem.

Under SECURE 2.0, unused 529 balances can now be rolled into a Roth IRA for the beneficiary (subject to limits and holding period rules) — eliminating the "what if they don't go to college" concern entirely.

Our Approach

Our Philosophy

Built Around
Your Family.

No two families are in the same situation. Income levels, existing assets, the number of children, the desired institutions, tax circumstances — every one of these factors shapes the right strategy. We don't hand you a brochure; we build a plan specific to you.

Our education planning process is integrated with your broader financial picture — retirement contributions, tax planning, estate planning — because a great education plan shouldn't come at the expense of your own financial security. We optimize the whole, not just the parts.

And because the rules governing these accounts — contribution limits, income thresholds, coordination requirements — change regularly, we stay current so you don't have to. You focus on raising your kids. We'll handle the details.

Start Early

Time is the most powerful variable in education funding. We help families build a plan the moment they're ready — whether that's before birth or in high school.

Tax Efficiency

Every education funding vehicle has different tax treatment. We select and sequence the right accounts to minimize tax drag and maximize what's available for tuition.

Coordination First

Tax credits, account distributions, grants, and loans must be carefully coordinated each year. A single mis-step can cost thousands. We manage this complexity so you don't have to.

Integrated Planning

Education planning doesn't exist in isolation. We integrate it with your retirement, tax, and estate plans to ensure you're not trading one priority against another.

Start Planning
Today.

The earlier we start, the more options you have. Schedule a complimentary consultation and let's build an education funding plan for your family — without the student loans.

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