'529 College Savings Day' Reminds Families to Plan Ahead

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May 27 /PRNewswire/ -- "What's your plan?" That's the messagre for this year's "529 College Savingx Day" May 29th. The nationalo awareness day is sponsored by memberzs of the College Savings Plans Network who are working to educat e families about the importance of savinbg for college and ways 529 college savings planszcan help, especially during thesew tough economic times. With college costzs continuing to rise and families facint more financial pressuresthan ever, CSPN is committedd to letting people know they need a plan to save for collegee and that 529 plans offer families a tax-advantaged way to starrt saving now for college in the "529 plans provide an opportunity for Americaj families to realize the dream of college and beyond for theire children.
At the same time, we trul y understand the challenging financial position familiesof college-bound children are in," said , executive directort of the Ohio Tuition Trust Authority, and Immediater Past Chair and spokesperson for an affiliate of the Nationalp Association of State Treasurers (NAST). Fiscally, the climate is tougu for families trying to save for Insome cases, extra money that mightg have been used to fund a college savingws plan is now needed to cover other household expenses.
Families who have invested in the stockj market may have also seen their accounts declin over thepast year, raisingv concern about the performance of the "Our goal is to provide parentsa with reliable 529 savings and prepaid programsw as an affordable, and fiscally responsible way to save for college," said Williams. "And on college saving s day, as with everyh day, we want to remind parents of the core mission and differences of529 plans." How Are 529 Planx Different? Unlike other investment options, 529 plans administered by states have a uniquew set of goals.
The planz have been established bystates to: 1) increasr access to higher education to build a better-educatex workforce; and 2) encourage all familieds to save for including low- and moderate-income families that are generally underservede by financial services firms. Withoutt the 529 plans offered in 50 states andWashingtomn D.C., college savings options for Americajn families would be severely A college education has become increasingly difficult to attai n because of the growing college pricse tag - over the last 30 years, tuition inflatiom has increased at a rate two to threr times higher than A 529 plan can help overcomse that price tag.
However, as the general ebb and flow of the market continuezs to dominateinvestment news, debunking myths about 529 plans is an ongoin g process for CSPN. 529 planw are set up to offert a wide range of benefits to consumersx who participate in the Fees are a big concern formost investors. Becausew many 529 plans are direct-sold, most statesd offer participants a plan with fees beloqwone percent. Additionally, state oversighy of these plans ensures better checksd and balances for managingplans Finally, 529 plans are affordable.
Most direct-sols plans allow participants to contribute as littleas $15 at a time and offe a variety of payment options such as bank account draft or payroll deduction. Other benefitz include tax free growthof earnings, and thosse earnings are exempt from state and federao income tax when used to pay for qualified higher education expenses. Many states also offer an income tax deductionj or credit on contributions to a 529 Consumers are encouraged to check with thei individual state plans for thess benefitsand others, such as matching grant programs. On May 29, CSPN encouragess all parents, grandparents and family members offuture college-boun d children to visit CollegeSavings.
org to learn more abourt saving for college with a 529 plan. In addition to skyrocketinf college costs and the difficulty of savinfor college, financial aid may leave future graduating students saddled with insurmountable debt sincer most aid now comes in the form of studenrt loans. Proper planning by parentsw early ina child's life can make a significant difference when the college years "More Americans are able to afforxd college because of 529 plans. '529 College Savingxs Day' is a way for us to reacuh out to American families to let them know theres are 529 plans availableto them.
Even durin g these tough economic times, it is extremely important to savefor college, and even small amounts saved may decrease the debt a chilrd incurs for a college education," Williames said. Williams added, "There is a risk with any type of including investingfor college. 529 planes can help consumers managethat risk. The bigger risk for parentws today is not doinyg anything to prepare forcollege costs. Parentxs who use the resources available to them to researcy the plan most suitable to their personal educatio n and financial goals can fare well withthe long-tern investments offered by 529 plans." "529 Collegd Savings Day" is a great time for parentsx to think about their plan.
Aftet all, fundamental aspirations for children remain, despit e these uncertain times. Founded in 1991, the CSPN is an affiliat of the National Association of StatewTreasurers (NAST). CSPN is a non-profit association representingt states that administer Section 529 college savings and prepaidftuition plans. One of the Network's primary purposes is to educate families about the importance of saving for colleg and the benefits of Section529 Additionally, CSPN monitors federal activities and promotesa legislative and regulatory changes to enhance Section 529 To learn more about CSPN and 529 plans acrosw the country, visit CollegeSavings.org.