Estimated One-Year Future College Costs
Assumes 6% Annual inflation
*These estimates have been calculated using the College Cost Calculatorat the College Savings Plans Network. If you like, you can calculate the costs yourself, too.
Setting investment goals
if you start investing today
The figures calculated are based on a hypothetical scenario. The performance shown is not indicative of any particular investment. Actual results will vary.
Tools for investing in education
Section 529 college savings plans
Tax-free growth. Prepaid tuition plans allow you to buy credits at today’s cost – could be halal. These investment plans are not halal.
Coverdell Education Savings Accounts (CESA)
Used only for education – could be halal. Learn more about Iman Funds CESA accounts.
Mutual funds and stocks
Diversified, professionally-managed, and offer potential for long term growth. These could be halal.
Islamic Savings Bonds – Sukuk
Fixed income – could be halal.
Custodial accounts
Flexible use of the child’s fund. Can be transferred to another child, however, the funds may only be used for educational purposes.
Earning Tax Credit
Lifetime Learning and American Opportunity.
Financial aid: Estimated Family Contribution (EFC)
Your child’s eligibility for financial aid is based on many factors such as family income, parent and child assets, and investments. An EFC formula using federal institutional methodology is applied to determine EFC or your child’s financial aid need.
