Wednesday, August 11, 2010

For Iowans (may work elsewhere): My strategy with paying college bills

  1. Open a College Savings Iowa account, with the beneficiary being the student. 
  2. Make an online payment to the college for tuition or other required student fees using your Discover card. The college probably has someplace on its website where you can do this from home.
  3. Immediately deposit the amount that you just charged from your checking account into the College Savings Iowa account.
  4. When the Discover bill comes (but no sooner than 10 calendar days after the CSI deposit), withdraw the amount from the College Savings Iowa fund and have it put back in your checking account.
  5. When the funds clear (usually about 2 business days), pay the Discover bill.
What this does for you is
  1. Makes the tuition or other required fee amount a deduction on your Iowa state income tax for that calendar year, and
  2. Earns you a bit of Discover Cash Back Bonus money.

1 comment:

Catherine said...

Now that is a good idea. A great plan that makes sense.