Skip Navigation
Edvisors Star Logo
Edvisors Logo
  • Compare Lenders
    • PRIVATE STUDENT LOANS
    • REFINANCE STUDENT LOANS

    featured articles

    • Best Private Student Loans for June 2025
    • Student Loan Comparison: Federal Loans vs Private Loans
    • Parent PLUS Loans vs Private Student Loans
    • How Does Interest on Student Loans Work?
    • Private Student Loan Cosigner: Everything you Need to Know
    • View All Articles >
    College Ave Student Loans

    Variable rates as low as: 4.24% APR1

    Fixed rates as low as: 3.24% APR1

    Apply Now

    featured articles

    • Compare Lenders
    • Best Student Loan Refinance Companies for June 2025
    • Federal Student Loan Repayment Plans
    • Student Loan Forgiveness: How to Get Student Loans Forgiven
    • Repayment Plans for Private Student Loans
    • Parent PLUS Loan Forgiveness
    • View All Articles >
    Earnest Private Student Loan

    Variable rates as low as: 5.88% APR (with Autopay)*

    Fixed rates as low as: 3.99% APR (with Autopay)*

    Apply Now
  • Scholarships
    • COLLEGE GRANTS
    • COLLEGE SCHOLARSHIPS
    • EMPLOYER
    • MILITARY

    featured articles

    • What's the difference between scholarships and grants?
    • Graduate Fellowships
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    featured articles

    • How to Find Scholarships
    • Top Tips for Winning Scholarships for College
    • Apply for Free Scholarships for College
    • Most Popular Scholarships for College Students in 2025
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    featured articles

    • What is Federal Work Study Program?
    • Employer Tuition Assistance Programs: How Do They Work?
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    featured articles

    • GI Bill
    • Military Service Academies
    • ROTC Scholarships
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College
  • Plan for College
    • CAREERS
    • COLLEGE ADMISSIONS
    • FAFSA
    • SCHOLARSHIPS
    • PAYING FOR COLLEGE
    • STUDENT LIFE BLOG

    featured articles

    • Best Job Search Sites June 2025
    • Resumes That Get Noticed
    • High Paying Careers
    • STEM Careers
    • View All Articles >
    Are you ready for college? You are with GradGuard

    featured articles

    • Measuring Academic Fit: Reach, Match and Safety Schools
    • Need-Blind Admissions
    • How Long is a College Essay
    • When are College Applications Due
    • How to Write a Good College Essay
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    featured articles

    • Filing the FAFSA 2025-2026: A Simple Guide for Students
    • FAFSA Deadlines for 2025-2026
    • FAFSA FAQ - Your FAFSA Questions Answered
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    featured articles

    • Most Popular Scholarships for College Students in 2025
    • Apply for Free Scholarships for College
    • College Scholarships for Kids
    • Most Prestigious Undergraduate Scholarships
    • Las mejores becas para estudiantes hispanos y latinos
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    featured articles

    • How to Pay for College
    • Tuition Payment Plans
    • Pros and Cons: Borrowing From My 401K to Pay for College
    • Paying College Tuition with a Credit Card
    • Best Ways to Pay for College Without Financial Aid
    • View All Articles >
    Enter to Win $2,500 to Help Pay for College

    featured articles

    • Financial Aid Disbursement: When and How You Will Get It
    • Should I Pay Off My Student Loans Right Now
    • How to Minimize Student Loan Debt
    • View All Articles >
    Are you ready for college? You are with GradGuard
  • Student Loans
    • FAFSA
    • PRIVATE STUDENT LOANS
    • FEDERAL STUDENT LOANS
    • REPAY STUDENT LOANS
    • LENDER REVIEWS

    featured articles

    • Filing the FAFSA 2025-2026: A Simple Guide for Students
    • FAFSA FAQ - Your FAFSA Questions Answered
    • FAFSA Deadlines for 2025-2026
    • FAFSA School Codes
    • FAFSA 2023-2024 Guide & Resources
    • View All Articles >
    College Ave Student Loans

    Variable rates as low as: 4.24% APR1

    Fixed rates as low as: 3.24% APR1

    Apply Now

    featured articles

    • Best Private Student Loans for June 2025
    • Student Loan Comparison: Federal Loans vs Private Loans
    • Parent PLUS Loans vs Private Student Loans
    • How Does Interest on Student Loans Work?
    • Private Student Loan Cosigner: Everything you Need to Know
    • View All Articles >
    College Ave Student Loans

    Variable rates as low as: 4.24% APR1

    Fixed rates as low as: 3.24% APR1

    Apply Now

    featured articles

    • Filing the FAFSA 2025-2026: A Simple Guide for Students
    • FAFSA FAQ - Your FAFSA Questions Answered
    • The complete guide to federal undergraduate student loans
    • What are Federal Parent PLUS Loans and How to Apply
    • Financial Aid for Graduate School
    • Compare Subsidized and Unsubsidized Student Loans
    • View All Articles >
    College Ave Student Loans

    Variable rates as low as: 4.24% APR1

    Fixed rates as low as: 3.24% APR1

    Apply Now

    featured articles

    • Best Student Loan Refinance Companies for June 2025
    • Federal Student Loan Repayment Plans
    • Student Loan Forgiveness: How to Get Student Loans Forgiven
    • Repayment Plans for Private Student Loans
    • Should You Refinance Federal Student Loans?
    • Parent PLUS Loan Forgiveness
    • View All Articles >
    Enter the Repayment Relief Sweepstakes

    featured articles

    • Sallie Mae Student Loan Review
    • College Ave Student Loan Review
    • SoFi Student Loan Review
    • Ascent Student Loan Review
    • View All Articles >
    College Ave Student Loans

    Variable rates as low as: 4.24% APR1

    Fixed rates as low as: 3.24% APR1

    Apply Now
  • Credit Cards
    • CARD REVIEWS
    • BEST CREDIT CARDS
    • CREDIT CARD FAQS

    featured articles

    • Petal® 2 Visa® Credit Card Review
    Self Credit Builder: Build Credit. Build Savings. Build Dreams.

    featured articles

    • Best Credit Cards for 2025
    • Best Cash Back Credit Cards
    • Best 0% Introductory APR Credit Cards
    • Best Secured Credit Cards for 2025
    • Best Balance Transfer Credit Cards
    Self Credit Builder: Build Credit. Build Savings. Build Dreams.

    featured articles

    • How to Build Credit?
    • What Age Can You Get a Credit Card?
    • What is a Secured Credit Card?
    • What is an Unsecured Credit Card?
    Self Credit Builder: Build Credit. Build Savings. Build Dreams.
  • Money Management
    • BANKING
    • BUDGETING
    • SAVING
    • DEBT MANAGEMENT
    • CREDIT
    • INVESTING
    • RISK MANAGEMENT

    featured articles

    • What is Online Banking
    • Student Checking Accounts
    • Debit Cards with Rewards
    • View All Articles >
    Chase College Checking Visa Debit

    featured articles

    • Best Budgeting Apps June 2025
    • Budgeting Tips
    • Budgeting for Beginners
    • View All Articles >
    Change Your Relationship With Money

    featured articles

    • Financial Goals
    • How to Save Money as a College Student
    • What is an Emergency Fund
    • View All Articles >
    Change Your Relationship With Money

    featured articles

    • How to Pay Off Debt
    • Debt Relief
    • What is a Debt Management Plan
    • View All Articles >
    Change Your Relationship With Money

    featured articles

    • How to Check Your Credit Score
    • Best Credit Building Apps June 2025
    • What is Credit?
    • View All Articles >
    Self Credit Builder: Build Credit. Build Savings. Build Dreams.

    featured articles

    • Investing for Beginners
    • Best Investment Apps June 2025
    • Understanding the Stock Market
    • View All Articles >
    Change Your Relationship With Money

    featured articles

    • What is Risk Management
    • How to Prevent Identity Theft
    • What is Insurance
    • View All Articles >
    Change Your Relationship With Money
  • Student LIFE Blog
  • Compare Lenders
    • Private Student Loans
    • Refinance Student Loans
  • Scholarships
  • Plan for College
  • Student Loans
  • Credit Cards
  • Money Management
  • Student LIFE Blog
Login
Register
  • Dashboard
  • My Profile
  • Logout
Search Box Form
Win a $2,500 Scholarship
Need money for college? Enter our monthly scholarship sweepstakes.
Enter Now
Advertiser Disclosure
×

Edvisors (“Edvisors Network, Inc.”) provides independent advertising-supported platforms for consumers to search compare and apply for private student loans. Loan offers from participating lenders that appear on our websites are not affiliated with any college and/or universities, and there are no colleges and/or universities which endorse Edvisors’ products or services. Lender search results do not constitute an official college preferred lender list. Edvisors receives compensation from lenders that appear on this site. This compensation may impact the placement of where lenders appear on this site, for example, the order in which the lenders appear when included in a list. Not all lenders participate in our sites and lenders that do participate may not offer loans to every school.

Edvisors is not a lender and makes no representations or warranties about your eligibility for a particular loan or financial aid. Lenders are solely responsible for any and all credit decisions, loan approval and rates, terms and other costs of the loan offered and may vary based upon the lender you select. Please check with your school or lender directly for information related to your personal eligibility.

Edvisors has endeavored to provide accurate information. However, the results provided by lenders are for illustrative purposes only and accuracy is not guaranteed, as such, Edvisors assumes no responsibility for errors or omission in the information provided.

Advertiser Disclosure
×

Edvisors (“Edvisors Network, Inc.”) provides independent advertising-supported websites. The Edvisors websites’ goal is to provide relevant and helpful content and comparison tools to better assist consumers to search and compare financial products or services. The offers, products or services listed on our websites are from third-party advertisers or companies from which Edvisors receives compensation. This compensation may impact the placement of where products or advertisements appear on this site, for example, the order in which the products appear when included in a list. Not all providers participate in our sites and providers that do participate may not offer the entire suite of applicable credit cards or financial products provided by the provider or available in the marketplace.

Edvisors is not a lender and makes no representations or warranties about your eligibility for a particular credit card, financial product, or service. The third-party providers are solely responsible for any and all credit decisions, loan approval and rates. Terms and other costs of the credit card or financial product may vary based upon the provider you select. Not all consumers will qualify for the advertised rates and terms.

Edvisors does not purport to offer financial advice related to the purchase or sale of financial products or services. We are not an investment, brokerage, or financial advisory service. Information provided with respect to financial products and services are solely intended for educational purposes. In addition, we recognize each person may have unique and individualized financial needs and we recommend and encourage you to seek the expert advice of qualified professionals regarding your specific financial needs.

Edvisors has endeavored to provide accurate, up to date information. However, because credit card offers and financial products change frequently and do not originate with us, we recommend you check the offering provider for complete terms and conditions, rates, costs, and other fees. Providers do not commission, review or approve the information available on the site. Information provided on the site is for illustrative purposes only and accuracy is not guaranteed, as such, Edvisors assumes no responsibility for errors or omission in the information provided.

Except as expressly set forth in our Terms of Use, all representations and warranties regarding the information presented on our websites are disclaimed.

×
Get Your Free Guide to Filing the FAFSA Today!

Thank you for your interest in Edvisors' 2020-2021 Guide to Filing the FAFSA.

Please complete the form below to access your free copy.

Thank you! Click here to download your free FAFSA Guide.

I am a:

×
College knowledge starts here!

Enter your email below to receive your Student Loan Handbook from Edvisors.

Please check your email for the Student Loan Handbook.

After Navigation
Home » Plan for College » Paying for College » 5 Ways to Save for College
  • Contents
  • 1: 529 Plans
  • 2: UTMA or UGMA Accounts
  • 3: Custodial Investment Accounts
  • 4: High-Yield Savings Accounts
  • 5: Scholarships and Grants

5 Ways to Save for College

Penny Redlin
By Penny Redlin
June 3, 2025
Email This Article
Fill out the form below to send a copy of this article to your email.
By clicking "Submit" I have read and agree to the Edvisors' Terms of Use and Privacy Policy. We strongly encourage you to read our Privacy Policy to understand how we use and share your information.
A copy of this article has been sent to your email.
Smiling girl enters the Edvisors $2,500 Scholarship on Laptop

Don't Miss Out - $2,500 Could Be Yours

You were so close!

Our $2,500 scholarship is still open. It takes less than 2 mins to enter.

No GPA, No Essay.

Just complete your quick entry before this month's deadline!

Enter Now
But How Much?

Fill out your loan details and calculate what your monthly payment will be.

Disclaimer
Student Loan Payment Calculator Disclaimer

This calculator is provided for informational purposes only. Calculated results are based on many factors, including the assumptions provided by the user. We cannot and do not provide any guarantees, conditions or warranties as to result accuracy or applicability to the user's particular circumstances. It is the responsibility of the user to verify that all of the output and resulting calculations are correct. This calculator should not be used by anyone to make material financial decisions and should be used solely for informational purposes. Actual terms will be set by your lender or your school. We encourage any user to seek personalized advice from qualified professionals regarding all personal finance issues. The results of this calculator are not based on any information provided by or an affiliation with any school.

Paying for college can be a scary proposition for many parents, especially with tuition prices climbing higher every year. Many families struggle to figure out how they’ll cover the steep costs, however, with some smart planning, you can create a path to make college more affordable. Starting early and exploring different ways to save can help ease the financial burden and give you peace of mind as you prepare for the future.

1: 529 Plans

A 529 plan is one of the best tools you can use to save for college. It’s a special savings account designed specifically for education expenses, and it comes with some great tax benefits to help your money go further. The money you contribute grows tax-free, and when it’s time to pay for college, you can make tax-free withdrawals as long as the funds are used for qualified education expenses, such as tuition, books, or room and board. 

One major perk of a 529 plan is that some states offer extra tax benefits, like deductions or credits for contributions, which can help you save even more. On top of that, 529 plans are very flexible. If the student decides not to go to college or gets a scholarship, the funds can still be used for other educational pursuits or transferred to another family member.

To get the most out of a 529 plan, it’s important to start as early as possible. The earlier you contribute, the more time your money has to grow with the power of compound interest. Setting up automated contributions can also make saving easier and more consistent, so you won’t forget to add to the account. Even small, regular contributions add up over time, so don’t worry if you can’t save a lot all at once. Every little bit brings you closer to your college savings goals.

2: UTMA or UGMA Accounts

UTMA (Uniform Transfers to Minors Act) and UGMA (Uniform Gifts to Minors Act) accounts are another great way to save for college. These are special custodial accounts that allow you to set aside money or assets, like stocks, bonds, or even real estate, for a child’s future benefit. Even though the funds don’t have to be used specifically for education, they are a valuable option for gifting financial resources to a child. 

Benefits: One of the biggest advantages of UTMA or UGMA accounts is their flexibility. You can transfer financial gifts into the account without limitations on how those funds are eventually used. This means the money could go toward college tuition, buying a first car, or even starting a small business when the child is older.

Considerations: However, there are some important things to keep in mind. These accounts are considered the child’s property, so when they reach the age of majority—usually 18 or 21, depending on your state—the account fully transfers to them, and they have complete control over how to use the funds. Also be aware, there may be tax implications to consider, as earnings in these accounts could be subject to the Kiddie Tax, which applies a higher tax rate on investment income above a certain amount. Be sure to weigh these factors and consult with a financial advisor before setting up an account. 

3: Custodial Investment Accounts

Custodial investment accounts are set up by parents or guardians to invest in a variety of options, such as stocks, bonds, and mutual funds, on behalf of a child. These accounts are a way to build long-term savings while offering a diversified approach to investing. Unlike other more restricted plans, custodial investment accounts give you the flexibility to choose where and how to invest, opening up a wide range of opportunities to grow your money over time.

Benefits: By opening a custodial investment account, you can take advantage of the potential growth that comes from investing in the stock market. Over the long run, these accounts can significantly increase in value, making them a smart choice for saving toward future college expenses. Since you have control over how the funds are invested until your child reaches a certain age, you can tailor the portfolio to align with your financial goals.

Risks: However, it’s important to keep in mind that investments in the market can go up and down. There's no guarantee of returns, so careful planning and research are essential when choosing this option. And just like UTMA or UGMA accounts, when your child reaches the age of majority (usually 18 or 21, depending on your state), they gain full control of the account and can use the funds for any purpose—not just for college. This makes it crucial to plan ahead and have open conversations about the importance of saving for education.

4: High-Yield Savings Accounts

High-yield savings accounts are a straightforward and reliable way to save for college. These accounts are designed to offer a higher interest rate than traditional savings accounts, allowing your money to grow faster over time. They’re especially great if you’re looking for a low-risk option to build your college fund without worrying about market fluctuations.

One of the biggest benefits of high-yield savings accounts is their safety. Since many of these accounts are FDIC-insured (up to $250,000 per depositor, per bank), your money is protected, giving you peace of mind. Plus, earning a better interest rate means your savings will work harder for you compared to a regular account.

To get the most out of a high-yield savings account, look for one with no fees and competitive rates to maximize your earnings. Many online banks offer excellent options with higher interest rates and no minimum balance requirements. Make sure the account provides online accessibility so you can easily keep track of your progress and make deposits whenever it’s convenient for you. High-yield savings accounts are a smart, simple step toward reaching your college savings goals.

5: Scholarships and Grants

Scholarships and grants are powerful tools to help reduce the cost of college. Unlike loans, they don’t need to be repaid, which means they directly lower your expenses. Scholarships are often awarded for academic achievements, athletic skills, or unique talents, while grants are typically based on financial need. Both can cover a range of costs, from tuition to books and living expenses, making them valuable resources.

To find scholarships and grants, start with scholarship searches on sites like Edvisors or Scholarships.com, where you can filter opportunities based on your interests, background, and career goals. Don’t overlook local organizations, such as community foundations, businesses, or civic groups, which often offer less competitive scholarships. Be sure to check with your school’s guidance counselor or financial aid office, they can provide resources and advice on available programs.

Applying for scholarships and grants takes time and effort, but it’s worth it. Stay organized by keeping a checklist of deadlines and apply to as many opportunities as possible. Tailor your applications to highlight your strengths, and don’t get discouraged if you don’t win every time. Each application is a chance to improve your skills and increase your chances at your next award. With persistence and dedication, scholarships and grants can make college much more affordable for you.

Related Content

What is a 529 Plan?
Elaine Rubin
May 14, 2025
A 529 plan, also known as a college savings plan, is a plan that allows you to save and pay for the future education of yourself, your child, a family member, or even friend.
Read Article
Credit Cards that Fund Your 529 College Savings Plan
Penny Redlin
June 03, 2025

College education costs continue to rise, making it more important than ever to plan ahead for future expenses. It’s not uncommon for many people to use a 529 College Savings Plan. Did you know that some credit cards can help you save for college effortlessly by depositing rewards into your 529?

Read Article
Why It’s Never Too Late to Start a 529 Plan for College
Tré Norman
June 03, 2025
It’s easy to feel defeated if you think you’re behind on saving for your child’s college education. Many parents worry that if they didn’t start early (like at birth), it’s already too late to make a difference. Fortunately, it’s never too late to start a 529 plan and take a step toward helping your child’s future. 
Read Article
Could You Be Saving More?
Subscribe to Edvisors' Student LIFE Newsletter to receive up-to-date financial aid information and advice, explore scholarship opportunities, loan repayment options, and learn expert strategies on how to plan and pay for college.
Newsletter Form
By clicking "Subscribe" I have read and agree to the Edvisors' Terms of Use and Privacy Policy. We strongly encourage you to read our Privacy Policy to understand how we use and share your information.
Thank you for subscribing to our newsletter.
We care about your privacy

This website uses cookies to offer you the most relevant marketing and targeted advertisements which in some states may be considered a sale of your personal information. You may exercise your right to opt out by clicking on deny cookies. Please accept cookies for the optimal experience. You can withdraw or modify your consent for non-essential cookies at any time by visiting Cookie Settings page

This website uses cookies for targeted advertising which in some states may be considered a sale of your personal information. You may opt out by clicking on deny cookies. Please accept cookies for the optimal experience. You can change your consent for such cookies via the Cookie Settings page

Edvisors
  • About Us
  • Official Rules
  • Careers
  • Team
  • Testimonials
Resources
  • Blog
  • Newsletter
  • Tools and Calculators
  • Video Resources
  • Financial Terms Glossary
  • Site Map
Media
  • Edvisors In the News
  • Press
Contact Us
  • Help
  • Ask the Edvisor
  • Student Aid FAQ
  • Directions
Partners
  • Advertise
  • Become an Affiliate
  • Link to Us
Legal
  • Terms of Use
  • Privacy
  • Consumer Health Privacy Notice
  • General Website Disclaimer
  • Accessibility Statement
  • Interest-Based Ads
  • Notice at Collection
  • Cookie Settings
  • Your Privacy Choices Your Privacy Choices Icon

Better Business Bureau logo

Edvisors provides expert advice on planning and paying for college. On Edvisors.com easily compare student loan lenders, learn how to apply for financial aid, and discover scholarships. Learn about federal and private student loans for students and parents, how and when to apply to college, and more!

Edvisors (“Edvisors Network, Inc.”) provides independent advertising-supported platforms for consumers to search compare and apply for private student loans. Loan offers from participating lenders that appear on our websites are not affiliated with any college and/or universities, and there are no colleges and/or universities which endorse Edvisors’ products or services. Lender search results do not constitute an official college preferred lender list. Edvisors receives compensation from lenders that appear on this site. This compensation may impact the placement of where lenders appear on this site, for example, the order in which the lenders appear when included in a list. Not all lenders participate in our sites and lenders that do participate may not offer loans to every school.

Edvisors is not a lender and makes no representations or warranties about your eligibility for a particular loan or financial aid. Lenders are solely responsible for any and all credit decisions, loan approval and rates, terms and other costs of the loan offered and may vary based upon the lender you select. Please check with your school or lender directly for information related to your personal eligibility.

Edvisors has endeavored to provide accurate information. However, the results provided by lenders are for illustrative purposes only and accuracy is not guaranteed, as such, Edvisors assumes no responsibility for errors or omission in the information provided.

Copyright © 1998-2025 by Edvisors Network, Inc. All rights reserved.

All other trademarks and service marks displayed on Edvisors Network, Inc. websites are the property of their respective owners.

Edvisors Network, Inc. 350 S. Rampart Blvd, Suite 200, Las Vegas, NV 89145

Copyright © 2025 by Edvisors.com. All rights reserved.

×

Edvisors $2,500 Scholarship


Have you entered the monthly $2,500 scholarship?

 Hammer about to break a piggy bank

Don't break the bank just yet! You could win $2,500.


Enter Now