As per information from Turbo Tax, payments to 529 state tuition plans are considered gifts, so you can exclude up to the annual $13K only. However, you can give up to $65,000 in one year (without using a portion of your tax exemption) if you agree that you will not make another gift to that child in the four years following.
In terms of a Stafford loan or a graduate school loan (that is not part of a 529 state tuition plan), we recommend speaking with a financial planner for the particulars about the Stafford loan in your state. If you don't have a financial planner/advisor, you can find one in your area by visiting http://www.boomerater.com/financial/find-a-financial-advisor.
- Submitted by Boomerater Staff
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