And even several years down the road, it can be harder to leave a job or change careers because the risk is so much more daunting when you have monthly payments to make. PS: According to data from the Education Data Initiative, a four-year undergraduate degree (including books, supplies, and living expenses) costs $35,551 per year on average, or $142,204 in total. And that’s for today. 2.) ✅ 3.) 🚫 For the 2022 tax year, that tax deduction is $20,000 for single filers and $30,000 for joint filers. Basically, the school just has to participate in a student aid program administered by the US Department of Education — check out this “approved school list.” Colorado chose to keep things as is — so the money I save can only be used for qualified higher education expenses (not a fancy elementary or high school). For me, this wasn’t a big deal, but for parents considering private school, it could be. The administrative fees for the plan I signed up for — a “Direct Portfolio” plan — are currently 0.29%. That latter bit is a killer. As you may remember from #3, I’m getting a $30,000 tax deduction for tax year 2022. 😬 According to CollegeInvest, the 529 beneficiary “can be your son or daughter, a grandchild, stepchild, a favorite niece or nephew, or even yourself! The technical list is very broad.”
