3. Savings AccountReputed to be the most popular because it is the most reliable and credible of all financial aid programs. Here, families can put as much money as they can for a beneficiary and they will be able to use it up tax free to pay for the college fee. These funds can also be paid for elementary or secondary levels. This is a student asset that can be deducted from the financial aid. 4. Roth IRAHere, you can withdraw your savings and pay for college costs without paying the income tax or the withdrawal penalty which is 10% of what you originally put in. This is an investment earning that is made available for those who are subject to paying income tax regularly. At least, in this investment, you get back more of what you paid for. For your own peace of mind, you can calculate your college savings by trying out college savings calculator that can be uploaded online.