College Funding

After purchasing a home, financing higher education costs for children or grandchildren is one of the biggest financial challenges many of us will face. With college tuition rates rising at nearly twice the pace of inflation, it is critical to develop a college funding plan early and to be aware of all your options. According to data from the College Board study Trend in College Pricing, the average cost of a 4-year public college education for a child born in 2007 is expected to be nearly $130,000 and the cost of a 4-year private college education will top $300,000. This means you would need to save $250 per month earning 8% annually from the moment a child is born just to cover the anticipated costs of 4 years of public college costs…quite a daunting task!

To help, MOAA provides servicemembers a flexible, competitive, and tax-advantaged college savings option by partnering with The Vanguard to offer The Vanguard® 529 College Savings Plan Sponsored by MOAA. In this plan, Vanguard will waive the $3,000 minimum investment fee, so you can get started with as little as $50. There is no enrollment fee, and you can sign up online in about 10 minutes. Learn more about The Vanguard® 529 College Savings Plan Sponsored by MOAA.

MOAA has an excellent educational assistance program, consisting of no-interest loans and grants, for the children of active duty, Reserve/National Guard and retired service members (both officer and enlisted).

Need help navigating the "ins and outs" of college financial aid sources, scholarships and strategies? Visit www.finaid.org for a breakdown of all this and more in plain English.