Take into account taxes and, if you qualify, need-based aid, says Troy Onink, CEO of Stratagee.com, a college-planning firm.
Start with the 529 and Coverdell Education Savings Account: Withdrawals for eligible expenses, such as tuition and books, aren't taxed or counted as income in financial-aid calculations.
You might also tap the mutual funds to get the American Opportunity Tax Credit, worth as much as $2,500 annually. You'll have to spend up to $4,000 from sources other than the 529 or ESA; the income phaseout is $180,000 for couples and $90,000 for singles.
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|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.26%||4.48%|
|15 yr fixed||3.30%||3.31%|
|30 yr refi||4.25%||4.45%|
|15 yr refi||3.29%||3.34%|
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