Other Vanguard Funds
There are other Vanguard Funds that can be used for college savings, and they will be described. Just knowing the different types of plans might help you decide, which is best for you. This article, however, shows you how to use tools on the Vanguard website to help you reach a decision as to which fund is best for you.
A Vanguard Educational Savings Account allows you to save up to $2,000 per year for the education of someone you care about. The account may be, but does not have to be, used for college. It can be used for any educational expenses of someone at any age. Control is always in the hands of the one who opened the account. Such a fund will have very little impact on any financial aid a student may receive. The funds are not state tax deductible, but do grow without any taxes until you need them. Withdrawals used for purposes other than education are taxed at the usual rate for the individual taxpayer, plus a ten percent penalty.
A Vanguard UGMA/UTMA account is a custodial account under the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act to save for a minor, either for education, or other purposes that are not typically parental responsibility, such as food, clothing or shelter. One can contribute any amount for the fund, but amounts more than $13,000 for an individual, or $26,000 for a married couple that files jointly, will be subject to Federal taxes. Anyone can contribute to the fund, and there is no penalty if the funds are not used for college. There is a significant impact on possible Federal aid for a college student.
An article that not only describes the Vanguard Fund, but gives tips for saving for college no matter whether you use a a Vanguard Fund or another means is the brighthub.com article, The Best Way to Save for College.