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Baccalaureate Bond

What is 'Baccalaureate Bond'

A zero-coupon bond issued by certain states to assist families in saving for college tuition by means of added tax benefits. Baccalaureate bonds are offered by many states and are tax-free securities that allow states to lend at reasonable rates, while issuing tax-free bullet bonds to citizens wishing to save over time for post secondary expenses, namely tuition.

Explaining 'Baccalaureate Bond'

These bonds are typically issued in small denominations and are offered in several maturities, making them more convenient for investing and paying yearly college tuition fees. In some states, additional benefits such as tuition discounts may be included if the student enrolls in a state college using these bonds for payment. When combined with other tax-advantaged college savings tools, baccalaureate bonds are an efficient way of saving toward post-secondary education.


Further Reading


Critical reflections on modern elite formation and social differentiation in the International Baccalaureate Diploma Programme in England
www.tandfonline.com [PDF]
… Research conducted by Doherty, Mu, and Shield (2009) in Australia showed that International Baccalaureate students' choices are … Another example of government policy that attempted to tackle the lack of economic capital during Labour was The Baby Bond (2000), a …

Financial condition and tuition in private nonprofit baccalaureate higher educationFinancial condition and tuition in private nonprofit baccalaureate higher education
etda.libraries.psu.edu [PDF]
… Research conducted by Doherty, Mu, and Shield (2009) in Australia showed that International Baccalaureate students' choices are … Another example of government policy that attempted to tackle the lack of economic capital during Labour was The Baby Bond (2000), a …

The Water Molecule: How Montessori High School, International Baccalaureate, and University Circle Bond to Form a Sustainable Molecule.The Water Molecule: How Montessori High School, International Baccalaureate, and University Circle Bond to Form a Sustainable Molecule.
eric.ed.gov [PDF]
… Research conducted by Doherty, Mu, and Shield (2009) in Australia showed that International Baccalaureate students' choices are … Another example of government policy that attempted to tackle the lack of economic capital during Labour was The Baby Bond (2000), a …

Low Income Students: Their Lived University Campus Experiences Pursing Baccalaureate Degrees with Private Foundation Scholarship Assistance.Low Income Students: Their Lived University Campus Experiences Pursing Baccalaureate Degrees with Private Foundation Scholarship Assistance.
search.ebscohost.com [PDF]
… Research conducted by Doherty, Mu, and Shield (2009) in Australia showed that International Baccalaureate students' choices are … Another example of government policy that attempted to tackle the lack of economic capital during Labour was The Baby Bond (2000), a …

Postsecondary Education Impact on Intergenerational Income Mobility: Differences by Completion Status, Gender, Race/Ethnicity, and Type of MajorPostsecondary Education Impact on Intergenerational Income Mobility: Differences by Completion Status, Gender, Race/Ethnicity, and Type of Major
www.tandfonline.com [PDF]
… Research conducted by Doherty, Mu, and Shield (2009) in Australia showed that International Baccalaureate students' choices are … Another example of government policy that attempted to tackle the lack of economic capital during Labour was The Baby Bond (2000), a …

Relationship Between Financial Support and Retention of Economically Disadvantaged Students in an Undergraduate Baccalaureate Nursing ProgramRelationship Between Financial Support and Retention of Economically Disadvantaged Students in an Undergraduate Baccalaureate Nursing Program
dc.uwm.edu [PDF]
… Research conducted by Doherty, Mu, and Shield (2009) in Australia showed that International Baccalaureate students' choices are … Another example of government policy that attempted to tackle the lack of economic capital during Labour was The Baby Bond (2000), a …



Q&A About Baccalaureate Bond


Are these bonds tax free?

Yes, they are tax free. They allow the state to lend at reasonable rates while issuing bullet tax-free securities to citizens wishing to save over time for post secondary expenses, namely tuition.

Are these bonds offered by all states?

No, they are not. Only certain states offer them.

What is the benefit of purchasing a baccalaureate bond?

The benefit is that you get an opportunity to save money and earn interest on your investment without having any taxes taken out of your earnings until you withdraw funds later on down the road when you need them for college tuition payments. This allows you more money than if you had invested in other types of investments because there would be taxes taken out each year and therefore less money available for savings towards college tuition fees later on down the road when needed most.

How do you invest in a baccalaureate bond?

You can purchase it from a broker or directly from the state that offers it. You can also purchase it through your bank or credit union if they sell them as well.

What are baccalaureate bonds?

Baccalaureate bonds are zero-coupon bonds issued by certain states to assist families in saving for college tuition by means of added tax benefits.

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