Saving for college - WKOW 27: Madison, WI Breaking News, Weather and Sports

Saving for college


MADISON (WKOW) -- More people than ever before are dealing with student loan debt.

A Pew Research Center report says 1 in 5 U.S. households, or about 22 million people, had college debt in 2010.

That's up about 4% from just three years earlier, according to the report.

The report's author says student debt has gone up in recent years because as more people go to school, they take out more loans to finance it.

It's best to tackle that debt, before it even starts to build up.

That's where parents come in, to help with a college savings plan.

Brent Lindell is a financial advisor with Savant.

He says parents should invest in a savings plan.

The Section 529 Plan is the most popular.

It's offered and operated by every state and can be transferred from one state to another.

Another option is an IRA or Roth IRA account.

They allow you to save money while avoiding significant taxes.

Lindell recommends parents speak with a financial advisor to get started.

Click on the camera icon for more tips and to see our interview with him.

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