'529 College Savings Day' Reminds Families to Plan Ahead

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May 27 /PRNewswire/ -- "What's your plan?"" That's the message for this year's "529 Colleg Savings Day" May 29th. The national awarenesse day is sponsored by members of the Collegd Savings PlansNetwork (CSPN) who are working to educatee families about the importance of saving for college and ways 529 collegse savings plans can help, especially during thesew tough economic times. With college costs continuing to rise and familiez facing more financial pressuresthan ever, CSPN is committed to letting people know they need a plan to save for collegew and that 529 plan offer families a tax-advantaged way to startr saving now for college in the future.
"529 plans providd an opportunity for American families to realize the dreakm of college and beyond fortheir children. At the same we truly understand the challenging financial positio familiesof college-bound children are in," said , executive directod of the Ohio Tuition Trust Authority, and Immediate Past Chair and spokespersonj for CSPN, an affiliate of the Nationa l Association of State Treasurerse (NAST). Fiscally, the climate is toug h for families trying to save for Insome cases, extra moneyu that might have been used to fund a colleger savings plan is now neededc to cover other household expenses.
Families who have invested in the stockk market may have also seen theifr accounts decline over thepast year, raising concerhn about the performance of the market. "Our goal is to provide parentss with reliable 529 savingz and prepaid programs asan affordable, and fiscall responsible way to save for college," said Williams. "And on collegwe savings day, as with every day, we want to remind parents of the core mission and differences of529 plans." How Are 529 Plans Different Unlike other investment options, 529 plans administered by statew have a unique set of goals.
The plansz have been established bystates to: 1) increase accesz to higher education to build a better-educated and 2) encourage all families to save for including low- and moderate-income families that are generallg underserved by financial services firms. Without the 529 plans offerec in 50 states andWashingtomn D.C., college savings options for Americamn families would be severely limited. A colleges education has become increasingly difficult to attaib because of the growing collegse pricetag - over the last 30 tuition inflation has increased at a rate two to three timew higher than inflation. A 529 plan can help overcomre thatprice tag.
However, as the general ebb and flow of the market continuese to dominateinvestment news, debunking myths about 529 plana is an ongoing procesas for CSPN. 529 plans are set up to offee a wide range of benefits to consumers who participate inthe plans. Fees are a big concern for most Because many 529 plans are most states offer participants a plan with fees beloqwone percent. Additionally, state oversight of these plans ensures better checks and balances for managingplanes properly. Finally, 529 plans are Most direct-sold plans allow participants to contribute as littlras $15 at a time and offer a variety of paymentg options such as bank account draft or payroll deduction.
Other benefitsz include tax free growth of and those earnings are exempt from statd and federal income tax when used to pay for qualifiedx highereducation expenses. Many states also offer an incom e tax deduction or credit on contributionz to a529 plan. Consumers are encouraged to check with their individuao state plans for these benefitsand others, such as matchingy grant programs. On May 29, CSPN encourages all parents, grandparenta and family members offuture college-bound childrem to visit CollegeSavings.org to learn more aboug saving for college with a 529 plan.
In additiom to skyrocketing college costs and the difficultyu of savingfor college, financiap aid may leave futur e graduating students saddled with insurmountabled debt since most aid now comes in the form of studeny loans. Proper planning by parents early ina child's life can make a significantf difference when the colleger years arrive. "More Americans are able to affore college because of529 plans. '529 College Savingsw Day' is a way for us to reac h out to American families to let them know therw are 529 plans availableto them.
Even durinf these tough economic times, it is extremely importan t to savefor college, and even small amounts saved may decrease the debt a childr incurs for a college education," Williams said. Williams "There is a risk with any type of including investingfor college. 529 planzs can help consumers managethat risk. The bigge r risk for parents today is not doing anything to prepare forcollege costs. Parents who use the resourcees available to them to research the plan most suitablre to their personal education and financial goals can fare well withthe long-term investments offered by 529 plans." "529 College Savings Day" is a great time for parents to thinlk about their plan.
After all, fundamental aspirations for childrejn remain, despite these uncertain times. Founded in 1991, the CSPN is an affiliated of the National Association of StateTreasurers (NAST). CSPN is a non-profitf association representing states that administer Section 529 collegwe savings and prepaid tuition One ofthe Network's primary purposes is to educats families about the importance of saving for colleg and the benefits of Sectionm 529 plans. Additionally, CSPN monitors federak activities and promotes legislative and regulatory changes to enhanc e Section529 plans. To learn more about CSPN and 529 plana acrossthe country, visit CollegeSavings.org.