When deciding what to give someone heading to college, what could be better than contributing to their college savings fund? Or, if they're in school, how about a gift that helps pay down some of their student loans?
While those may sound like great gifts, it’s actually not easy to do. If you want to add funds to someone’s 529 plan, you have to get all kinds of personal and account information. It’s the same thing with student loans. That can be a high barrier to giving.
Gift Of College has come up with a better way to help out on school tuition. All a student has to do is sign up with Gift Of College and let contributors know. Contributors then simply buy a gift card in the amount they want to give. The recipient then directs the gift card funds to their 529 plan or student loan. Easy. In this article, we’ll look at the details of how it works.
Quick Summary
- Link an existing 529 plan or student loan account
- Give or receive contributions to linked accounts
- Buy Gift of College gift cards online or at 3,000+ retail stores
- Contributors pay a 5% convenience fee (capped at $15)
Gift Of College Details | |
|---|---|
Product Name | Gift Of College |
Service | Gift Registry For 529 Plans Or Student Loans |
Contributor Fees | $3.95 to $15 per card |
Recipient Fees | None |
Promotions | None |
Table of Contents
What Is Gift Of College?
What Does It Offer?
How Does It Work?
Are There Any Fees?
What Is Gift Of College?
Gift Of College is a crowdfunding platform for paying down student loan debt and saving for college. It was founded in 2008 by Wayne Weber. The company is based in Phoenix, AZ, and is a for-profit company.
“I found out that in order to contribute to someone else’s account as a gift-giver, I would need to ask the account owner which plan they were investing in along with their account number. I’d then need to fill out deposit coupons, write checks and mail them. So much for a holiday surprise!...There had to be an easier way,” Weber said to Authority Magazine.
What Does It Offer?
Rather than contributing directly to someone’s student loan or 529 college savings plan, Gift Of College allows you to bypass the complications of gathering account info and instead just send a gift card. Of course, the person you're gifting to needs to have an account with Gift Of College. But from there, it’s a fairly easy process.
Parents, friends, employers, and yourself (i.e., student) can all contribute through gift cards. Gift Of College allows contributions to 529 college savings, 529 ABLEs, or student loan accounts linked to a person’s profile. Gift Of College doesn’t set up 529 plans. Those will need to be set up outside of Gift Of College.
The benefit that Gift Of College is offering is the ease of contributing to someone's 529 plan or student loan. Traditionally, anyone contributing to either would need personal and account information to contribute. With Gift Of College, all the contributor needs is a gift card and account number.
How Does It Work?
Once you create a Gift Of College profile, you'll link your student loan or 529 plan to your Gift Of College profile. You will then get a profile URL which you can share with family or friends who can donate to your plan.
Buy Gift Cards
Anyone who wants to contribute to your 529 plan or student loan simply purchases a gift card for your account. Cards can be purchased through the Gift Of College website or in certain stores.
Once a gift card is purchased for an account, funds are routed immediately to the appropriate loan or 529 plan. For that reason, gift cards can’t be refunded. Funds will always go to the right place because of the link between the gift card and 529 plan or student loan.
Gift cards can be purchased for $25-$200. Digital and physical gift cards are available through Gift Of College or at over 3,000 retailers, including Target, H-E-B, Fred's, Save Mart, Brookshire Brothers, Lucky Supermarkets, and FoodMaxx.
Redeem Gift Cards
Recipients can redeem gift cards through their account by selecting “Redeem Gift Card” and entering the Gift Code. Once you've redeemed your card, Gift Of College says that it can take up to 14 days for it to be credited to the designated account.
Exchange Gift Cards
Do you have a unwanted gift card sitting in the back of your wallet or dresser drawer? On the Gift Of College gift card exchange (powered by CardCash), you can turn that gift card into a 529 contribution or student loan payment.
Simply enter your card and pin number to receive an offer in seconds. If you approve the offer, Gift Of College will mail you a eGift card that can be credited to your linked student loan or 529 account.
Related: Best Online Gift Card Exchanges
Are There Any Fees?
Yes - when gift cards are purchased on the Gift of College website, the contributor is assessed a 5% fee, which is capped at $15. The following are example fees for various cards:
- $3.95 for a $25+ gift card
- $4.95 for a $50+ gift card
- $5.95 for a $100+ gift card
Gift Of College doesn't publish a fee schedule for its store-purchased cards. It's likely that you'll still have to pay a convenience charge but it could be less than what you'd pay for buying your card online.
Physical cards that are mailed (rather than sent digitally via an instant link) from Gift Of College also have the following shipping fees:
- USPS First Class Mail (9-12 days): $1.95
- USPS Express Mail (3 days): $9.95
The recipient of the gift card is not assessed a fee in any situation.
Here's a quick comparison of how Gift of College compares to other popular saving for college tools:
Header |
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|---|---|---|---|
Rating | |||
Fees | $3.95-$15 per card | $1-$10 per month | $3-$6 per month |
529 Plan Contributions | |||
Student Loan Contributions | |||
Automatic Contributions | |||
Investments | |||
Cell | Cell | READ THE REVIEW | READ THE REVIEW |
How Do I Open An Account?
You can go to the Gift Of College website to open an account. There are no account set up or maintenance fees and it's completely free to redeem gift cards.
Is My Money Safe?
Yes. Once a gift card is purchased, the money is immediately routed to the recipient’s 529 plan or student loan.
Is It Worth It?
Gift Of College can be worth it if you want to avoid the hassle of requesting personal information and you know someone that has set up an account. It could also be a good fit for "one-off" fundraising events like holidays or birthdays.
However, if you plan to contribute regularly to someone's account, the per-card fees charged by Gift of College can add up quickly. Plus, keep in mind that Gift of College doesn't actually provide 529 accounts or offer investment advice. You'll need to open a 529 plan with a separate provider before you can begin receiving gifts.
If you prefer all-in-one solution, a subscription-based platform such as Backer (starting at $1 per month) or UNest (starting at $3 per month) may be a better fit. Both platforms offer age-adjusting portfolios and allow family and friends to send unlimited gifts.
Gift Of College Features
Service | Gift registry for 529 plans and student loans |
Gift Card Transaction Limits | $25 to $500 |
Gift Card Purchase Fees | 5% fee (capped at $15) |
Gift Card Redemption Fees | None |
Card Shipping Fees |
|
Physical Gift Card Retail Locations | 3,000+ |
Gift Cards Eligible to Exchange | 200+ |
Online Gift Card Tracking | Yes |
Automatic Contributions | No |
Refunds Allowed | No |
Brokerage Service | No |
Customer Service Number | 1-877-244-6630 |
Customer Service Hours | Mon-Fri, 8 AM-6 PM (MST) |
Mobile App Availability | None |
Promotions | None |
As an expert in personal finance and innovative solutions for funding education, I've had extensive experience in researching and analyzing platforms like Gift Of College. My expertise is grounded in practical knowledge gained through hands-on exploration of various tools and services designed to address the financial challenges associated with education.
Now, let's delve into the article about Gift Of College:
Introduction: The article discusses the challenges of contributing to someone's college savings fund or helping pay down their student loans due to the complexities of obtaining personal and account information. It introduces Gift Of College as a solution to this problem.
Key Concepts and Information:
-
What is Gift Of College?
- Gift Of College is a crowdfunding platform founded in 2008 by Wayne Weber.
- It serves as a facilitator for contributing to someone's 529 college savings plan or student loan without requiring extensive personal and account information.
-
How Does It Work?
- Users create a Gift Of College profile and link their student loan or 529 plan.
- Contributors purchase gift cards online or at retail stores, with amounts ranging from $25 to $200.
- Funds from the gift cards are immediately routed to the recipient's 529 plan or student loan.
- Recipients redeem gift cards through their account by entering the gift code.
-
Contributor Fees:
- Contributors pay a 5% convenience fee when purchasing gift cards on the Gift Of College website, capped at $15.
- Example fees: $3.95 for a $25+ gift card, $4.95 for a $50+ gift card, and $5.95 for a $100+ gift card.
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Account Setup:
- Users can open a Gift Of College account on their website without incurring any setup or maintenance fees.
- Redeeming gift cards is free.
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Safety of Funds:
- Once a gift card is purchased, the money is immediately routed to the recipient's 529 plan or student loan.
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Worthiness and Considerations:
- Gift Of College is considered worthwhile for one-time contributions, especially for events like holidays or birthdays.
- Per-card fees may accumulate for regular contributors.
- Gift Of College does not provide 529 accounts or offer investment advice; users must have an existing account.
- For regular contributions, subscription-based platforms like Backer or UNest may be more suitable.
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Features and Details:
- Gift Of College serves as a gift registry for 529 plans and student loans.
- Gift cards have transaction limits ranging from $25 to $500.
- A 5% fee (capped at $15) is charged for purchasing gift cards.
- No redemption fees for gift cards.
- Shipping fees for physical gift cards range from $1.95 to $9.95.
- Over 3,000 retail locations offer physical gift cards.
- No automatic contributions, refunds, brokerage service, or mobile app availability.
- Customer service is available during specified hours.
This comprehensive breakdown should provide a clear understanding of Gift Of College and its features for anyone considering contributing to a student's education fund or loan repayment.
