Student Savings and Loans
As a parent, you want to give your children every chance to chase their dreams, without the weight of overwhelming debt. That’s why our Student Savings and Loan offerings will help them (and you as their supportive parent) who are planning ahead and thinking big.
Help Your Child Plan and Think Big
With our college savings offerings, private student loan opportunities, and scholarships, you have the tools to plan with confidence. We’re here to help make the journey more affordable and less stressful. Here is a breakdown of options to make confident choices today that pay off tomorrow (and beyond).
Roth Independent Retirement Account
Yes, it’s a retirement account, but it can also double as a smart way to save for college.
- Parents aged 59 1/2 and older can withdraw savings tax-free if the account has been open for at least five years.
- Parents under 59 1/2 may avoid early withdrawal penalties if the withdrawal is used for qualified college expenses.*
Advantage 529 Savings Account**
Popular. Consider this account your go-to for college planning.
- Contributions grow tax-deferred, and withdrawals are tax-free at the federal level if the money is used for qualified education expenses. States may also offer tax advantages.
- Choose from education savings plans or prepaid tuition plans.
- High lifetime contribution limits, typically $300,000.
- No restricted income level, making it accessible to a wide range of families.
- Some states also offer tax benefits.
Coverdell Education Savings Accounts**
More flexibility. More control.
- Contribute up to $2000 per year, per beneficiary.
- Use for qualified K-12 and college expenses.
- Grow your contributions tax-deferred; withdrawals are tax-free when used properly.
- Choose your investment. You’re in the driver’s seat.
- Income eligibility limits apply.
Let’s Not Forget the Custodial Account (UTMA/UGMA)
Custodial accounts under the Uniform Transfers to Minors Act (UTMA) and Uniform Gifts to Minors Act (UGMA) are a flexible way to gift your child a financial head start. You make the contributions. You manage the investments. Your child gets the benefit when they become an adult.
- Open an account in your child’s name, with you as custodian until they turn 18 or 21 depending on your state.
- Use the funds for anything that benefits your child, like education, a first car or college tuition.
- All contributions are irrevocable, meaning once it’s theirs, it’s theirs.
- Earnings and gains are taxed to your child, often at a lower rate.
Private Student Loans
In partnership with Sallie Mae, student loan opportunities are available for undergraduate and graduate students.
- Use funds for not only tuition. Finance room & board, books and even computers!
- College students are busy. We won’t waste your time. Apply in 15 minutes or less.
- Apply to release your cosigner from your loan after you graduate, make 12 on-time principal and interest payments, and meet certain credit requirements.
Scholarship Opportunities
They’ve got big plans. You’ve got their back. We’re here to help.
You’ve supported your child through late-night studying, early morning practices and big college dreams. Now, let us help support you. At PACU, our scholarships are designed to ease the cost of higher education for members like you.
If your child is headed to a university, community college or trade school, a little financial boost can go a long way. It’s our way of saying that we seek the effort. We believe in their future.
Headquartered in Winston-Salem, North Carolina, and founded in 1949 within the aviation industry, Piedmont Advantage Credit Union (PACU) serves member-owners, who reside, work, worship, attend school or operate a business in one of the six counties it serves in North Carolina or who are employed by one of its many employer companies. These six counties are Davie, Forsyth, Guilford, Iredell, Mecklenburg and Rockingham.
Disclosure
*Piedmont Advantage Credit Union does not provide tax or legal advice. This information is for informational purposes only and should not be relied upon for tax decisions. Consult your tax advisor regarding your individual situation.
**Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Piedmont Advantage has contracted with CFS to make non-deposit investment products and services available to credit union members.