 TITLE: How to Avoid Student Loans CONTENT: Don't Wait for College to Start Saving\n--------------------------------------\nWhether you're a parent planning to help pay for your child's college education or you're a student, the best time to start saving for college is now.\nWhile it may be easy to stash some money in a savings account or investment account, consider opening a 529 college savings plan to take advantage of special perks. For example, as long as you use 529 plan funds for qualified educational expenses, all your contributions grow tax-free and the withdrawals are also tax-free.\nAdditionally, your state may offer other tax breaks in the form of a deduction or credit based on how much you contribute every year.\nMost 529 plans allow you to set a monthly contribution amount that will be automatically debited from your checking account to make saving easier. If you have several years before you need to pay for college, consider boosting contributions whenever your income increases or monthly expenses are reduced. Just keep in mind that if you or your child uses 529 plan money for ineligible expenses, your earnings in the account may be subject to taxes and a 10% penalty. END