Bridging the College Affordability Gap with a 529 Education Savings Plan
23 Julio 2024 - 11:15AM
With the cost of higher education continuing to rise, families
across the nation are grappling with an ever-increasing financial
lift. According to the ISS MI 2024 529 Industry Analysis, over the
past year, tuition fees have increased by 24.9%, room and board
costs have surged by 13.3%, textbook prices have jumped by 25.1%,
and other miscellaneous education-related expenses have grown by
18.1%. These rising costs highlight the need for families to learn
about and adopt effective saving strategies to manage future
education expenses. The Education Plan®, a 529 education savings
plan, offers an option to offset this growing challenge.
The Education Plan® provides a tax-advantaged way for families
to save for their children’s future education and help reduce the
reliance on student loans. "By investing in The Education Plan®,
families can take proactive steps to manage education costs and
lessen the financial strain," said Natalie Cordova, Executive
Director of the New Mexico Education Trust Board, which administers
The Education Plan®. "Our goal is to make higher education more
accessible and affordable for families."
One of the key benefits of The Education Plan® is its tax
advantages. Contributions to the plan grow tax-free, and
withdrawals for qualified education expenses are also tax-free.
Additionally, many states offer a state tax deduction for
contributions. The plan’s flexibility allows funds to be used for a
variety of education-related expenses, including tuition, books,
and room and board.
The Education Plan® can also be used to fund tuition for K-12
education, not just post-secondary education. This added
flexibility is particularly beneficial for families currently
making payments for private school, as it provides a tax-advantaged
way to manage those expenses.
The Education Plan® offers flexible contribution options to make
it easy for families to save. Anyone can open an account with no
initial minimum contribution requirement and contributions can be
made at any time through a one-time gift or regular automatic
contributions. Savings can also easily grow with the help of gift
contributions from family and friends.
Despite the rising costs of education, the outlook for 529 plans
is positive, with strong growth expected over the next five years,
according to the ISS MI 2024 529 Industry Analysis. As more
families recognize the benefits of these plans, The Education Plan®
continues to adapt and expand its offerings to better serve the
needs of families. The Education Plan® equips families with the
information and resources to navigate the complexities of education
financing, helping them make informed decisions and develop a
tailored education savings strategy aligned with their financial
goals. Many online tools such as a glossary of terms, tax benefit
information, a detailed FAQ, and a help center allow people to
access information when it’s convenient for them. The ReadySave 529
mobile app provides account holders with The Education Plan® an
even easier way to access and manage their accounts with convenient
and easy-to-use features.
With flexible contribution options and access to a variety of
helpful tools, this invaluable resource enables families to start
investing for future education with The Education Plan® at any
stage in a student's life.
To learn more about The Education Plan® or to open an account,
visit TheEducationPlan.com.
Joanie Griffin
The Education Plan
505-261-4444
jgriffin@sunny505.com