Grandparents' guide to funding a grandchild's college education

oregonlive.com

Grandparents can contribute to college education by directly paying tuition to the institution, which is not subject to gift tax limits. Cash contributions to a grandchild already in college may be most beneficial. For younger grandchildren, 529 college savings plans offer tax-deferred growth and tax-free withdrawals for qualified expenses. Gift tax exclusion in 2026 is $19,000 per recipient. While federal financial aid formulas no longer count grandparent contributions, some private colleges may consider them for aid packages.


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