A sales charge is a commission on the purchase of an advisor-sold 529 plan. Direct-sold plans, like The Education Plan, do not have sales charges.
A savings bond is a government bond, such as a Series EE or Series I bond.
A scholarship is a form of financial aid that is based on the student’s academic, artistic or athletic merit.
Section 529 of the Internal Revenue Code of 1986 is the section of U.S. tax law that defines 529 plans and specifies their requirements.
Self-help aid includes money that must be earned or repaid, such as student employment and student loans.
A static investment portfolio does not change its asset allocation over time.
A stock is a security that represents ownership rights in a company.
A stock fund is a type of mutual fund that invests in company stocks (also called “equities”).
A student loan is money borrowed for school that must be repaid with interest. Loans may come from the government, banks, financial institutions or other organizations.
The successor account owner is a person designated on the account application as the new account owner upon the death of the current account owner.
Superfunding refers to the use of 5-year gift-tax front-loading to make a lump sum contribution to a 529 plan account. See also: Gift-Tax Front-Loading.