Gift of College makes it easy to contribute to the 529 plan of a family member or friend. These gifts could help a loved one go to college. See how it works in our Gift of College review and interview with founder Wayne Weber.

With the holidays just around the corner, you’re probably already considering what to buy the children in your life. You might browse the crowded toy aisles, click through Amazon, or even peruse the gift card rack. And for your efforts, you might find that perfect consumer trinket.

But what if you could buy them a gift card that contributes to their future just as easily as grabbing that overpriced toy off the shelf?

I recently had a chat with Wayne Weber, founder and CEO of Gift of College, a gift-based 529 contribution service that is quickly growing in popularity. You can find a transcript of our podcast recording below, but let’s talk a bit about what Gift of College is and how it might quickly become your gift go-to.

What It Is

Maybe you’ve grown tired of buying plastic toys for the children in your life, knowing they’ll soon end up broken or in the Goodwill pile. If so, you can easily understand how Gift of College came to be. The entire premise of the company is to facilitate contributions to 529 accounts–essentially allowing you to “give the gift of college” rather than wasting money on unnecessary junk.

Many parents already contribute to their children’s college savings accounts on a regular basis. But where Gift of College really shines is with friends and family.

It allows generous, future-minded folks to send monetary gifts directly to kids’ 529 accounts. Either through the company’s account directory or through convenient gift cards. This eases the gift-giving process all around. No more more sending account numbers back and forth or worrying about cashing birthday checks and transferring funds. You simply go online or buy a quick gift card, and you’re done.

However, Gift of College doesn’t end with pre-planning for a child’s education. Giftees can also use the contributions to pay down student loan debt. Just because someone has already begun, or even completed, their education doesn’t mean that loved ones can’t contribute!

If you have student loans or know a young adult who is working to pay down their educational balances, look into Gift of College. If you’re anything like me, making a dent in those seemingly-endless loan payments would be much more handy than a new sweater this holiday season.

How It Works

Using Gift of College is quite easy. If you want to give the gift of education to a child or young adult in your life, you only need to take a few steps.

For the student (or student-to-be)–In order to allow loved ones to contribute to your educational expenses, you’ll need to set up a free account on GiftofCollege.com. From there, you can link to your existing 529 account or any outstanding student loan accounts. Once the accounts are lined, you can disburse funds to these accounts as you receive gifts.

Once you sign up for an account, your name will be added to Gift of College’s online registry. This means that gift-givers can simply visit the site and enter your name to find your account. They can add funds directly through the site with just a few clicks. It makes birthday, Christmas, or even graduation gifts quick, thoughtful, and easy.

If you receive a Gift of College gift card, you can log in to your account to add the funds you were given. The process is simple, and you’ll incur no fees when moving the money to your account.

For the gift-giver–If you’re looking to contribute to a child or young adult’s education, you can do so in two ways.

The first is through a direct contribution on GiftofCollege.com. If you know that the recipient already has an account through the site, simply enter their username or search for them in the site’s user registry. Once you find the correct account, click on it to begin the contribution process. Then enter the amount you wish to give, your funding source (credit or debit card), and you’re done!

If you’re not sure whether the child has an account on GiftofCollege.com yet, or if you want to give a physical gift card that can only be used for educational expenses, you’re in luck. Simply go to your local Toys’R’Us, Babies’R’Us, HEB, or any number of stores across the country and pick up a gift card. You can also buy them online through AARP, PayPal, or directly from GiftofCollege.com.

You can load each card with any amount between $25-500, making this a great gift option for any level of generosity.

What It Costs

The cost of giving the gift of college varies depending on the contribution route you take.

If you choose to send funds directly online, through the Gift of College website, you’ll pay a 5% fee on the total amount sent. This fee is also capped at $15. So, the more you give, the less your fee is by percentage.

If you instead choose to pick up gift cards, they’re very similar in fee to many of the Mastercard or Visa-branded gift products at the register. You can load each card with as much as $500, and the retail fee per card is $5.95.

This means that if you wanted to give a child $1,000 toward their educational expenses, you’d pay a total of $15 by contributing directly through Gift of College’s website or $11.90 by buying two gift cards. However, if you wanted to give them $2,000 toward their 529 plan or student loans, you’d pay $15 in fees with a direct contribution through GiftofCollege.com or $23.80 by purchasing physical gift cards.

Be sure to do the math and see where you’ll pay the least in fees before purchasing your gift.

CardCash Gift Card Exchange

One really neat feature through Gift of College is the CardCash Gift Card Exchange program.

If you’re like me, you probably have unused (and maybe even unwanted) gift cards lying around. You know, the ones you win in a raffle or are given from a well-meaning friend, but you’ll likely never use. So, what do you do with them?

Well, you can either sell them through an online buyback site or use the Gift of College exchange program to turn that into even more money for educational expenses. Of course, the amount you’ll receive online for your unwanted gift cards is less than face value. That’s to be expected. However, it’s better than wasting money by letting the card sit in a drawer forever.

Simply log in to choose the store name and dollar amount of your gift card. You’ll then be offered an exchange dollar amount for trading in the card. If accepted, that trade in amount will be available for contribution to your linked 529 or student loan accounts once the trade is processed.

In the Workplace

Gift of College isn’t just a great resource for friends and family. Employers are also using it to give the gift of college savings and student loan repayment to their employees.

Employers can purchase gift cards or contribute online to employee’s accounts the same way relatives can contribute to a child.

Employers can also use the program to facilitate employee contributions to their own accounts through automatic payroll deductions. They can also use Gift of College to match contributions, give bonuses, or gift holiday rewards. Gift of College makes it easy by directly linking to the company’s payroll service, too.

Why It’s Genius

Contributing to a child or young adult’s educational expenses can be tough. If you want to ensure that funds go into a 529 savings account or student loan balance, it usually means going back and forth to obtain account numbers. If you’re a parent and want to solicit contributions from loved ones to your child’s college savings, it can be uncomfortable to ask.

Gift of College makes it easy for everyone. You can buy a gift card and hand out tangible gifts this holiday season. Birthdays are made simpler by just logging onto the website and directly contributing to an established account.

Parents don’t have to worry about cashing checks, transferring money to accounts, or asking the grandparents to send college funds instead of more Legos. Gift of College makes the entire education-saving experience an easy, quick, and comfortable one for all.

Plus, you’ll never again have to worry about all of those expensive toys ending up in the garbage or garage sale pile! Visit GiftofCollege.com to learn more, open a free account, or begin contributing to a student’s expenses today.

Do you contribute toward educational savings for the holidays? How do you think that GiftofCollege.com would make that process easier?

Listen to our interview with Gift of College founder, Wayne Weber

Topics: Reviews

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