25:["$","$L26",null,{"category":"$27","relatedArticles":[{"id":"cG9zdDo2NDE2OA==","databaseId":64168,"postId":64168,"author":{"node":{"id":"dXNlcjo1Mw==","databaseId":53,"userId":53,"avatar":{"url":"https://secure.gravatar.com/avatar/e108c21a7f5933aad20a2fed390a87d8?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Amanda Dixon is a personal finance writer and editor with an expertise in taxes and banking. She studied journalism and sociology at the University of Georgia. Her work has been featured in Business Insider, AOL, Bankrate, The Huffington Post, Fox Business News, Mashable and CBS News. Born and raised in metro Atlanta, Amanda currently lives in Brooklyn.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Amanda","fullName":"Amanda Dixon","lastName":"Dixon","name":"Amanda Dixon","postCount":{"pageInfo":{"offsetPagination":{"total":184,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"adixon","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybTo5MA==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":90,"categoryId":90,"link":"https://smartasset.com/student-loans/articles","name":"Student Loans","postCount":{"pageInfo":{"offsetPagination":{"total":52,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"student-loans","ancestors":null,"parent":null,"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$28","date":"2017-04-25T07:00:25","excerpt":"

Education is a factor that parents often take into account when deciding where to settle down and purchase a home. That’s why most of the best places to raise a family have good schools. While education has never been the great equalizer it was meant to be for students in the United States, those who […]

\n","featuredImage":{"id":"cG9zdDo2NDIwMg==","databaseId":64202,"altText":"The States With the Best Schools in 2017","date":"2017-04-04T19:09:49","fileSize":40544,"mimeType":"image/jpeg","modified":"2017-04-04T19:09:54","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2017/04/states-with-the-best-schools.jpg","__typename":"MediaItem"},"modified":{"datetime":"2017-4-27","readable":"April 27, 2017"},"multipleBylinesByRole":{"editedBy":null,"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":null,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/student-loans/states-best-schools-2017","metaDesc":"For the third consecutive year, SmartAsset ranked the states with the best schools. This year, we compared to quality of schools in each state using...","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":9,"title":"The States With the Best Schools in 2017 - SmartAsset","__typename":"PostTypeSEO"},"slug":"states-best-schools-2017","status":"publish","title":"The States With the Best Schools in 2017","uri":"/student-loans/states-best-schools-2017","tags":{"nodes":[],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":{"id":"dXNlcjo1Mw==","databaseId":53,"userId":53,"avatar":"$29","description":"Amanda Dixon is a personal finance writer and editor with an expertise in taxes and banking. She studied journalism and sociology at the University of Georgia. Her work has been featured in Business Insider, AOL, Bankrate, The Huffington Post, Fox Business News, Mashable and CBS News. Born and raised in metro Atlanta, Amanda currently lives in Brooklyn.","additionalMeta":"$2a","email":null,"firstName":"Amanda","fullName":"Amanda Dixon","lastName":"Dixon","name":"Amanda Dixon","postCount":"$2b","slug":"amanda-dixon","__typename":"User"},"editedBy":null,"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybTo5MA==","children":"$2e","databaseId":90,"categoryId":90,"link":"https://smartasset.com/student-loans/articles","name":"Student Loans","postCount":52,"slug":"student-loans","ancestors":null,"parent":null,"__typename":"Category"},"isModifiedBeforePublished":false,"contentBlocks":["

","

Looking to move to a state with great schools? Check out the current mortgage rates.

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The U.S. high school graduation rate recently reached an all-time high of 83%. But school performance and academic achievement vary widely from district to district and state to state. Student-teacher ratios range from 9.7 to 1 in Vermont to 22.8 to 1 in Utah. And in several states, less than half of high school graduates start college within a year of earning their diplomas.

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Study Specifics

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SmartAsset wanted to assess the quality of K-12 education in each state. So we collected data on public schools and ranked all 50 states using six different metrics, including the college attendance rate, the graduation rate and the student-teacher ratio.

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Our study also looks at K-12 funding per student, the percentage of upperclassmen taking AP classes and the percentage of students scoring a three or higher on their AP exams. For a detailed look at how we conducted our analysis, read the data and methodology section below.

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This is SmartAsset’s third annual study of the states with the best schools. Read the 2016 study here.

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Key Findings

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New Jersey is No.1. New Jersey was one of the top states for K-12 education in the 2015 and 2016 editions of our analysis. But this year, it ranks as the state with the best public education system.
Nevada is No. 50. For the third year in a row, the Silver State takes the last spot on our list. Its student-teacher ratio is high (17.8 to 1) and its four-year high school graduation rate is just 71%.
Northeastern schools still get high marks. As we’ve seen in the past few years, most of the states with the best public schools are located in this region. In each of these states, funding per student and four-year high school graduation rates are higher than average.

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1. New Jersey

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There are many reasons why New Jersey earns an A for its K-12 public education system. Its high school graduation rate is the second-highest rate in the country (90%). It also has a low student-teacher ratio (11.9 to 1) and a high college attendance rate (70%). About 70% of 11th- and 12th-grade students scored a three or higher on their AP exams in 2016. That’s a strong indication that many public school students in New Jersey are prepared to start college after they graduate.

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Something else that New Jersey is known for is its high property taxes. The average effective property tax rate in the Garden State is 2.19%, which is much higher than the national average. That gives the state the chance to allocate a significant portion of its funds to education. Funding per student was $21,138 during the 2014-2015 school year. That’s the fifth-highest amount of per-pupil public school funding in the nation.

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2. Connecticut

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Connecticut ranked as the top state for public education in the 2015 and 2016 editions of our analysis. But this year it slipped to the No. 2 spot on our list. Just as we found in last year’s analysis, 87% of public high school students in Connecticut graduate within four years.

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Although it has fallen in the rankings since last year, the Constitution State ranks first for its college attendance rate (along with Massachusetts). About 75% of students who graduated from high school in 2014 enrolled in a college or university within a year.

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3. Massachusetts

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Five-year estimates from the Census Bureau’s 2015 American Community Survey report that the median household income in Massachusetts is around $68,563. That’s about 24% higher than the national average ($53,889). Wealthier communities tend to have well-funded schools with more resources than schools in poorer areas. And sometimes when it comes to academic achievement, more money translates to better results. That’s certainly the case in Massachusetts where the high school graduation rate is 87%.

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4. New York

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New York is another state that consistently rates well for its K-12 public education system. It spends more money on public education than any other state in the nation, except for Vermont. It also has the 10th-lowest student-teacher ratio (12.7 to 1) and the eighth-highest percentage of high school students taking at least one advanced placement class.

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Something that New York state could improve on is its high school graduation rate. The Empire State had one of the lowest public high school graduation rates during the 2014-2015 school year (79%).

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5. Vermont

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Nationwide, the average public school revenue per student enrolled during the 2014-2015 school year was $12,578, according to the National Education Association (NEA). Funding per student in Vermont is more than twice the national average ($27,962). In fact, the Green Mountain State spends more on public school education than any other state in the country. Vermont also ranks first for its low student-teacher ratio. Data from the NEA reveals that there are fewer than 10 students for every K-12 public school teacher.

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6. New Hampshire

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School districts in New Hampshire are required to report the number of students participating in the advanced placement program to the Department of Education each year. Making information about AP classes publicly available is supposed to hold schools accountable for providing rigorous courses that prepare students for college. And so far that policy seems to be working. The number of 11th- and 12th-grade public school students taking AP courses is now 28%, up from 25% in 2015.

","

Most public school students in New Hampshire (71%) scored a three or higher on their AP exams in 2016. This means that many of the state’s students start college with credits under their belts.

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7. Maryland

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The state of Maryland had the highest percentage of public school students enrolled in an AP class in 2016. According to the College Board, about 57% of 11th- and 12th-grade students took a class that would give them the opportunity to earn college credit before they left high school. And 63% of public school students in Maryland scored a three or higher on their AP exams. Knocking out some course requirements before starting college can lower the cost of higher education and save students money.

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8. Virginia

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Virginia ranks as the eighth-best state for K-12 education. One school in Alexandria – the Thomas Jefferson High School for Science and Technology – was recently recognized as one of the best high schools in the country in a ranking by U.S. News & World Report. Statewide, public schools in Virginia rate well for having a high percentage of students enrolled in AP classes (44%) and a relatively low student-teacher ratio (12.6 to 1).

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9. Iowa

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Iowa has the highest high school graduation rate in the country. Data from the National Center for Education Statistics indicates that 91% of its public high-school students graduate within four years. About 67% of high school graduates in 2014 went on to attend college within 12 months of receiving their high school diplomas. Its high college attendance rate is one reason why Iowa also ranks as one of the best states for higher education.

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10. (tie) North Dakota

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North Dakota falls to the 10th spot on our list, down from fifth place in last year’s analysis. Funding per student grew by 2.29% within a year. The state now invests around $13,188 in each of its public school students. But so far that hasn’t paid off yet. The percentage of high school students attending college within a year of graduation fell by one percentage point. And the percentage of students scoring a three or higher on their AP exams fell by five percentage points to 62%. Compared to most states across the country, however, North Dakota still provides its public school students with a high quality education.

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10. (tie) Pennsylvania

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Data from the National Education Association reveals that public school funding per student in Pennsylvania was around $20,218 during the 2014-2015 school year. But per pupil funding varies widely throughout the state and some of the poorest households pay the most property taxes. Funding inequity has become such a hot button issue that Pennsylvania legislators are considering whether they should eliminate school property taxes altogether.

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While more work needs to be done to ensure that there’s equal opportunity in public education, the Keystone State still ranks well in our analysis. Its AP score percentage (the percentage of 11th- and 12th-grade students who scored a three or higher on exams in 2016) is the sixth-highest in the country.

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$\"The$

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Data & Methodology

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To find the states with the best schools, SmartAsset ranked all 50 states using most of the metrics that we considered in the 2016 edition of our study. The ACT stopped publishing state-level testing data on its website. So we excluded the metric reflecting the percentage of students taking the ACT or SAT. In the end, we used the following factors to evaluate the quality of K-12 education in each state:

","$30","

In order to complete or analysis, we ranked all 50 states across all six of our factors. Then, we averaged our rankings, giving half weight to the two measures of AP testing and full weight to the other four factors. Finally, we gave each state a grade based on those average rankings. The states that ranked in the top 15% received either an A or an A-. The states that ranked in the bottom 15% received an F.

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Nick Wallace completed the data analysis for this study.

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Questions about our study? Contact us at press@smartasset.com.

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Photo credit: ©iStock.com/monkeybusinessimages

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College and other educational costs don’t come cheap, making them a major financial hurdle for many families. Luckily, there are tools that can help you plan and save for these expenses. 529 plans and indexed universal life (IUL) insurance are two tools that some people consider. A 529 plan is a tax-advantaged savings plan designed to help you save for future education costs. It offers tax-free growth and tax-free withdrawals when funds are used for qualified education expenses. On the other hand, IUL insurance is a type of permanent life insurance that combines a death benefit with a cash value component. While IUL policies can be used to fund education (though this isn’t their primary or intended purpose), they also offer the flexibility to address other financial needs, such as retirement or estate planning.

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If you are looking for ways to fund education, a financial advisor can help you compare different options.

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What Is a 529 Plan?

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A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education expenses. Named after Section 529 of the Internal Revenue Code, these plans offer significant tax benefits, including tax-free growth and tax-free withdrawals when funds are used for qualified education expenses. These cover a broad range of educational costs, including tuition, fees, books, supplies and even room and board at eligible institutions.

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There are two main types of 529 plans: prepaid tuition plans and education savings plans. Prepaid tuition plans allow you to purchase credits at today’s rates to be used for future tuition and fees at participating colleges or universities.

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On the other hand, education savings plans, on the other hand, function more like investment accounts. You can invest your contributions in a variety of options such as mutual funds or exchange-traded funds (ETFs), and the account’s value fluctuates based on the performance of these investments.

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Advantages of 529 Plans

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When it comes to saving money for education-related expenses, 529 plans have several major advantages. Here are three general ones to consider:

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Flexibility: Account holders can change the beneficiary to another eligible family member if the original beneficiary decides not to attend college or receives a scholarship. Plus, the money in these accounts can be used for more than just college tuition. Supplies, room and board and the cost of trade school are just a few of the many qualifying expenses.
No income limits and generous contribution limits: There are no income limits for contributors. Contribution limits are also quite high, approaching or exceeding half a million dollars in many states.
State tax deductions and credits: Many states offer state tax deductions or credits for contributions to their own 529 plans.

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What Is IUL Insurance?

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Indexed universal life insurance is a type of permanent life insurance that combines a death benefit with a cash value component linked to a stock market index. Unlike traditional whole life insurance, which offers fixed interest rates, IUL policies could offer higher returns based on the performance of the chosen index.

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To clarify, returns are not directly tied to stock market investments. Instead, the interest credited to the policy’s cash value is determined by the performance of the chosen index, with caps and floors typically set by the insurance company.

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As a result, policyholders can benefit from market upswings while being protected from market downturns because of the established floor, which keeps the cash value from dipping below a certain level.

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An IUL policy offers flexible premium payments and adjustable death benefits, allowing policyholders to tailor the plan to their changing financial needs and goals. The cash value component of the policy also grows tax-deferred, meaning you don’t pay taxes on the gains as long as they remain within the policy.

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You can access your accumulated cash value through loans or withdrawals to fund education expenses, retirement income, your emergency fund, and more.

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However, it’s important to note that IUL policies can be complex and may involve higher fees and risk compared to other types of life insurance. Consulting with a financial advisor can help individuals determine if an IUL policy aligns with their long-term financial objectives and risk tolerance.

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Advantages of IUL Insurance

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IUL insurance serves a different purpose than 529 plans, and has its own unique advantages to offer. Here are three to consider.

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Versatility: IUL insurance not only provides a death benefit to beneficiaries but also serves as a financial tool for wealth accumulation and estate planning. You can also adjust your premiums and death benefit amount to better suit your current financial situation, if needed.
High return potential: Policyholders can choose how their cash value is allocated among different index accounts, giving them control over their investment strategy. Compared to other insurance types that grow at a fixed rate, UIL insurance provides a higher potential for growth. Plus, floor rates prevent your cash value from dropping when the market takes a hit.
Tax benefits: The cash value of your IUL insurance grows tax-deferred, allowing it to accumulate more efficiently. Plus, beneficiaries don’t have to pay taxes on the death benefit.

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Major Differences Between 529 Plans and IULs

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When planning for future financial needs, take the time to understand the key differences between 529 plans and IUL insurance. Both are valuable tools, but they serve different purposes and offer unique benefits. Consider the following:

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Primary Purpose

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529 Plan: Designed exclusively for saving for education expenses.
IUL: Provides life insurance coverage with a cash value component you can use for various financial needs.

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Tax Benefits

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529 Plan: Contributions grow tax-free, and withdrawals are tax-free when used for qualified education expenses.
IUL: Cash value grows tax-deferred, and loans or withdrawals from the cash value can be tax-free under certain conditions. The death benefit is also tax-free.

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Investment Options

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529 Plan: Offers a range of investment options, typically including mutual funds and age-based portfolios.
IUL: Cash value is linked to the performance of a stock market index, but funds aren’t directly invested..

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Flexibility

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529 Plan: Can only be used for education expenses; changing the beneficiary is allowed within certain limits.
IUL: Provides flexible premium payments, adjustable death benefits, and you can use the cash value for various financial needs.

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Risk and Guarantees

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529 Plan: Investment performance can fluctuate based on market conditions, with no guarantees on returns.
IUL: Includes a floor that protects against market downturns, but may involve higher fees and complexities.

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When to Use Each Account

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Deciding whether to use a 529 plan or an IUL insurance policy depends on your financial goals and needs. While they both offer benefits, they have their disadvantages too.

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A 529 plan is ideal for individuals or families focused on saving for future education expenses, particularly those with long time horizons. These plans offer significant tax perks, including tax-free growth and tax-free withdrawals for qualified education costs. If you’re sure the funds will be used for educational purposes, a 529 plan is a smart, straightforward choice.

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An IUL policy, on the other hand, may be better for those seeking a more versatile financial tool that can adapt to changing needs over time. An IUL provides life insurance coverage while also allowing the policyholder to build cash value linked to a stock market index. If you want to combine the security of a death benefit with the potential for higher returns on your investment, this can be particularly beneficial. Plus, you can access the cash value in an IUL for various financial needs, such as supplementing retirement income, funding a business venture or even covering education expenses.

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It’s also worth noting that IUL policies can be a little more complex and costly than 529 plans. So even though IULs have some unique benefits that 529s can’t match, they might not be a good fit for some families.

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Bottom Line

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Both 529 plans and IUL can help you save for future educational expenses, but they differ in several ways. A 529 plan is a straightforward, tax-advantaged way to save for education, making it a good choice for families focusing on funding future schooling costs. On the other hand, an IUL policy provides both life insurance protection and the potential for cash value growth, offering the versatility to fund financial needs beyond education. Knowing how each option works can help you make the best decision for your situation.

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Financial Planning Tips

","$3e","

Photo credit: ©iStock.com/pixdeluxe, ©iStock.com/Ridofranz, ©iStock.com/FG Trade

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The average cost of tuition and fees for the 2024–2025 school year is $11,011 for in-state residents at public colleges and a whopping $43,505 at private colleges, according to 2024 data collected by U.S. News & World Report. Yet, by taking a few key steps, you will find many practical ways to prepare financially for the college education of your children. These strategies can include creating a budget, exploring scholarship opportunities, saving early and understanding costs. A financial advisor can also help you create a financial plan to manage different college savings options.

","

1. Open a Tax-Advantaged 529 Plan

","

Engaging in a 529 plan, a tax-advantaged savings plan intended to encourage saving for future education costs, can be integral to your overall financial plan. Financial advisors can provide expert advice on whether this is a suitable saving plan for your circumstances. Named after Section 529 of the Internal Revenue Code (IRC), this plan is sponsored by states, state agencies or educational institutions and provides a systematic approach to saving for college over time. Plus, you can now roll any unused funds over to a Roth IRA account after your child’s college is paid for.

","

2. Create a College Budget

","

To gain control of your finances and make informed decisions about saving and spending, budgeting is crucial. It can be the difference between having enough to cover all four years and running out of money after just one. Here are five common things you need to account for:

","

Estimate the education costs, which include tuition, books and housing.
Identify your income sources and track your monthly expenses.
Evaluate your child’s potential spending habits to identify where you could save more.
Identify how much the living costs could be offset by your child working a part-time job while in school.
Take into account inflation and potential changes in the costs of college over time.

","

Remember, it can be beneficial to save where possible, but one should avoid assuming that every dollar saved today equates to a dollar less to borrow tomorrow.

","

3. Invest in Potential Scholarship Opportunities

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Scholarships can significantly lighten the financial load of college expenses, making it necessary to explore these opportunities. The key is to start your search early, apply for multiple scholarships and comply with each scholarship’s unique requirements. Additionally, as your child develops a skill in a sport, musical instrument or other endeavors, consider cultivating that talent so they can have a shot at more scholarship opportunities.

","

4. Save Money Every Month From Birth

","

","

Saving early can significantly increase the final amount due to the power of compound interest. For example, saving $200 per month from birth at a 6% savings rate could give you a total of $78,058 by the child’s 18th birthday. But remember, this is just a mathematical probability. Actual results may vary based on many factors, including market variability. The important factor is that you’re saving and investing for your child’s future as early as you can work it into your own budget.

","

5. Understand Future College Costs

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Online calculators that factor in current costs, the child’s age and the expected rate of inflation can provide an estimate for future college costs. College tuition and other costs have only increased over the last 20 years, so it’s likely that they might continue to go up over the next 20. This is something that many parents don’t account for, which can end up costing valuable time and money, and put them at risk of falling short.

","

6. Know Financial Aid Guidelines and Possibilities

","

Understanding financial aid guidelines and possibilities can help determine whether you qualify for assistance. Your child might be able to access grant money or even borrow what is needed to offset what you’re able to save if that structure makes sense for them. Some guidelines will limit their ability to receive funds based on your income as a parent and financial situation. These guidelines can change over time so it’s important to stay up to date with what your child might be eligible for, and what the requirements are for you and them.

","

7. Get Your Child Involved in Saving

","

Your children should get involved in saving for their own college, once they reach an age where it makes sense. Involving them in financial planning is beneficial as it can potentially instill saving habits and develop financial prudence that might assist them in the future. One way to do this is to get your children involved by saving part of an allowance, or helping them create a budget once they are old enough to get a job.

","

8. Check Your College Savings Annually

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Reviewing your college savings annually will help you ensure that are on track with your goals. Understanding where your savings account is currently and comparing it with what you potentially need to have in the future, will help you adjust your investments and make prudent decisions to save more as you need to.

","

Bottom Line

","

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Planning for your kids’ college expenses could feel daunting. However, appropriate planning and discipline, coupled with expert advice from a financial advisor, can make it manageable. Nevertheless, remember that your success in reaching your college education goal will depend on your specific finances. So make sure you plan accordingly.

","

Tips for Saving for College

","$51","

"],"experts":null,"link":"/student-loans/financial-planning-for-college","published":{"datetime":"2023-12-1","readable":"December 1, 2023"},"shareInfo":{"title":"8 Ways Parents Can Plan for Their Kids’ College","origin":"/student-loans/financial-planning-for-college"},"isNewsArticle":false},{"id":"cG9zdDoyODg3MQ==","databaseId":28871,"postId":28871,"author":{"node":{"id":"dXNlcjo0OA==","databaseId":48,"userId":48,"avatar":{"url":"https://secure.gravatar.com/avatar/50102d5e35f225d865b5245a2521bb14?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Nick Wallace studied Economics at the University of Washington. He enjoys getting people thinking about finances by looking a the numbers. Nick is a freelance journalist and data analyst living in Michigan. He still lends his economic and analytic expertise for SmartAsset's studies.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Nick","fullName":"Nick Wallace","lastName":"Wallace","name":"Nick Wallace","postCount":{"pageInfo":{"offsetPagination":{"total":112,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"nwallace","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybTo5MA==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":90,"categoryId":90,"link":"https://smartasset.com/student-loans/articles","name":"Student Loans","postCount":{"pageInfo":{"offsetPagination":{"total":52,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"student-loans","ancestors":null,"parent":null,"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$52","date":"2015-04-08T10:00:03","excerpt":"

\n","featuredImage":{"id":"cG9zdDoyODg3Ng==","databaseId":28876,"altText":"The Top 10 Cities for New College Grads","date":"2015-02-24T11:12:04","fileSize":150645,"mimeType":"image/jpeg","modified":"2015-02-24T11:12:04","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2015/02/7896437384_9cdce86739_z.jpg","__typename":"MediaItem"},"modified":{"datetime":"2016-4-26","readable":"April 26, 2016"},"multipleBylinesByRole":{"editedBy":null,"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":null,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/student-loans/top-10-cities-new-college-grads","metaDesc":"Graduating college this spring or know someone who is? We looked at jobs, affordability and fun to find the best places for new college grads to live...","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":9,"title":"The Top 10 Cities for New College Grads - SmartAsset","__typename":"PostTypeSEO"},"slug":"top-10-cities-new-college-grads","status":"publish","title":"The Top 10 Cities for New College Grads in 2015","uri":"/student-loans/top-10-cities-new-college-grads","tags":{"nodes":[],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":{"id":"dXNlcjo0OA==","databaseId":48,"userId":48,"avatar":"$53","description":"Nick Wallace studied Economics at the University of Washington. He enjoys getting people thinking about finances by looking a the numbers. Nick is a freelance journalist and data analyst living in Michigan. He still lends his economic and analytic expertise for SmartAsset's studies.","additionalMeta":"$54","email":null,"firstName":"Nick","fullName":"Nick Wallace","lastName":"Wallace","name":"Nick Wallace","postCount":"$55","slug":"nick-wallace","__typename":"User"},"editedBy":null,"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybTo5MA==","children":"$58","databaseId":90,"categoryId":90,"link":"https://smartasset.com/student-loans/articles","name":"Student Loans","postCount":52,"slug":"student-loans","ancestors":null,"parent":null,"__typename":"Category"},"isModifiedBeforePublished":false,"contentBlocks":["

The benefits of a college degree are well-established. Unemployment is consistently several percentage points lower for workers with a bachelor’s degree than it is for those whose education ended after high school, and over the course of a lifetime, college graduates earn hundreds of thousands more on average than their less-educated peers (even with the cost of college increasing in recent years). The largest benefit of a college degree, however, may be flexibility: college graduates are often able to choose from a number of careers, employers and places to live, which hugely benefits their overall quality of life.

","

This is the 2015 version of SmartAsset’s study. Read the 2016 version here.

","

Unfortunately, that flexibility generally diminishes as time passes. Once they become homeowners and start families, college grads will find it harder and harder to switch careers or move to a different city. Which makes the years immediately following graduation the ideal time to try living in a new place.

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Thinking about college? Try our free student loan calculator.

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Jobs, Affordability and Fun

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To find the best cities for college grads, SmartAsset looked at data on over 100 of the largest cities in the United States. For each of the cities in our study, we developed three separate scores, based on a total of ten metrics, covering the aspects of life most important to a recent college graduate: jobs, affordability and fun, described below.

","$5a","

Finally, for every city in our study, we averaged those three numbers to produce a single score. The results are the top ten cities for college grads. (Read more about our methodology below.)

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Key Findings

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The Midwest and the South dominated the top ten, claiming either eight, nine or all ten of the top ten places (depending on how you categorize Austin, Oklahoma City and Pittsburgh). The main edge offered by the South and Midwest? Affordability. Of the 15 most affordable cities in our study just two were located outside of the South or Midwest.
Five U.S. state capitals landed among the top ten cities for college grads. Politics have always proven attractive to new college grads, whose idealism, energy and education often make them the perfect fit for political positions like speechwriter, canvasser and policy analyst.

","

$\"college_grads\"$

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1. Austin, Texas

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It’s safe to say the Texas capital city’s secret is out. Austin is one of the fastest growing cities in the country, and a significant portion of that growth can be attributed to a young people migrating to Austin from all over the country. So why has it become such a magnet? First and foremost is the well-regarded cultural scene, which features some of the best entertainment and dining around—Austin bars and restaurants both ranked 4^th out of any city in the country, and we don’t need to tell you about Austin’s legendary music scene.

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However, unlike other cultural capitals—looking at you New York and San Francisco—Austin isn’t prohibitively expensive. In fact, the city’s 93.8 composite cost of living score places it below the national average of 100. Combine that with the strong jobs market across the Longhorn state, and it’s easy to see why Austin is the perfect city for college grads.

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2. Lexington, Kentucky

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“The Horse Capital of the World,” Lexington is surrounded by more than 400 horse farms, which raise horses of all breeds and for all purposes—including, of course, racing. While any college grad can enjoy a day at the racetrack (Keeneland Race Course is the local favorite), there is plenty to do in town that doesn’t involve horses. Lexington has the 20^th highest concentration of 20-somethings of any major U.S. city, and bars there rate ninth highest in the country on Yelp. The best part? All of that comes at a low cost: Rent in Lexington is fifth lowest of any major city in the country.

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3. Des Moines, Iowa

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While many may associate the state of Iowa with agriculture more than cosmopolitan city-life, a visit to Des Moines should put that misperception to rest. The Iowa state capital is a hub of commercial, cultural and political activity, a fact that is reflected in its strong jobs market. Des Moines has the 4^th lowest unemployment rate for workers with at least a bachelor’s degree of any city in the country, and the ninth lowest unemployment rate overall.

","

4. Nashville, Tennessee

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In his country hit “Crazy Town,” Jason Aldean described Nashville as “Hollywood with a touch of twang.” That may not be far off the mark. Nashville has the third highest concentration of entertainment and dining establishments of all major U.S. cities, behind only Los Angeles and San Francisco. Unlike those Californian metropolises, however, a recent college grad might actually be able to afford Nashville, which boasts a 91.2 cost of living index. In Nashville, you really might be able to “live off tips from a pickle jar,” as Mr. Aldean so eloquently put it.

","

5. Cincinnati, Ohio

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The first of two Ohio cities to crack the top ten, Cincinnati is home to America’s oldest professional baseball team (the Reds, originally called the Red Stockings), as well as the nation’s oldest reinforced concrete skyscraper, the Ingalls building, built in 1903. While there’s certainly plenty of history in Cincy, there are also hordes of young-people: according to data from the U.S. Census Bureau it has the 18^th highest concentration of 20-somethings of any major US city—about 20% of Cincinnati’s citizens are in their 20s.

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6. Columbus, Ohio

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As the home of Ohio State University, one of the largest universities in the country, Columbus greets a huge number of new college grads at the end of every school year, many of whom choose to stay put. With good reason: Columbus is the 11^th most affordable big city in the US, with rent for a typical one bedroom apartment costing just $655, according to HUD. New arrivals should be prepared to don some silver and red come September, when nearly everyone in town will be rooting for the Buckeyes to repeat as college football’s national champions.

","

7. Pittsburgh, Pennsylvania

","

Pittsburgh is the link between the Midwest and the Northeast, and the city combines the best of both these worlds. It offers the low cost housing common to Midwestern cities, alongside the high quality entertainment and dining of east coast locales like Boston, New York and Washington, D.C. It is also one of the youngest cities in the country: according to data from the U.S. Census Bureau, 23% of Pittsburgh’s population is in the 20-29 cohort, the fifth highest rate in the U.S.

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8. Omaha, Nebraska

","

College grads moving to Omaha should have no problem finding work. Omaha’s job market ranked fifth overall out of any city in our study, thanks to the third lowest unemployment rate for workers with a bachelor’s degree and the second lowest unemployment rate overall. Graduates with a degree in computer science and other tech-centric disciplines will find Omaha particularly welcome: SmartAsset’s 2014 study of tech jobs found that Omaha was the nation’s best city for tech workers.

","

Top Ten Best American Cities to Work in Tech

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9. Lincoln, Nebraska

","

Just half a point behind Omaha, Lincoln has a similarly strong job market, with an unemployment rate under 3%, lowest of any major city in the country. Lincoln is home to the University of Nebraska, and the Cornhuskers are the main event on autumn Saturdays. New arrivals are encouraged to catch a Huskers game at Memorial Stadium, which has sold out every home football game since 1962.

","

10. Oklahoma City, Oklahoma

","

The capital of the Sooner State, Oklahoma City is a great place for college grads looking to experience a new city. It is the 4^th most affordable city in our study, with average rent for a two bedroom apartment costing just $602, according to HUD. Newcomers should have no problem making friends: OKC is sometimes called “The Big Friendly” because the people are so welcoming and—you guessed it—friendly.

","

Methodology

","

As described above, we developed three 0-100 scores based on three separate categories of data—jobs, affordability and fun. We used the same methodology to create each score. First, we ranked each city on each the underlying metrics for the three scores. So, for example, to develop the “fun” score, we ranked every city on these four underlying metrics: the percent of the total population between the ages of 20 and 29, the number of entertainment and dining establishments per 10,000 residents, the average Yelp star-ratings of the city’s bars and the average Yelp star-ratings of the city’s restaurants (note that we gave half-weight to the two Yelp rankings—all other metrics in the study were given full weight).

","

We then averaged those three rankings to come up with a final score. The higher the score, the better the city is for college grads.

","

Here are the top five cities in each of the three categories we considered (in order from first to fifth). The “funnest” cities were: Seattle, Austin, San Francisco, New Orleans and Los Angeles. The most affordable cities were Fort Wayne, Buffalo, Lubbock, Oklahoma City and Laredo. The cities with the best jobs markets were Arlington, Virginia; Washington, D.C.; Madison, Wisconsin; Honolulu, Hawaii and Omaha, Nebraska.

","

Sources

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The data used to develop the affordability score came from the Department of Housing and Urban Development, and the Council for Community and Economic Research. The data used to develop the jobs score came from the US Census Bureau, the Bureau of Labor Statistics and the Indeed.com and CareerBuilder.com APIs. Finally, the data used to develop the fun score came from the U.S. Census Bureau and the Yelp API.

","

Read the current version of SmartAsset’s study of the best cities for new college grads here.

","

Questions about our study? Contact us at blog@smartasset.com.

","

Photo credit: flickr

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