On “529 Day,” think about college savings plans
You probably won’t see it on your calendar, but May 29 (5/29) is 529 College Savings Day, or 529 Day for short. This day, named after the 529 plan, a popular college-savings vehicle, is designed to promote people’s awareness of the need to save and invest for the high costs of higher education. And that need has never been greater. Consider the following:
College prices keep moving up. College costs just keep rising. For the 2016–2017 school year, the average cost (tuition, fees, room and board) was about $20,000 for in-state students at public universities and more than $45,000 for private schools, according
to the College Board. These costs are likely to continue climbing.
Student debt is at record levels. Of the Class of 2016 graduates who received loans – about 70% of the total student population – the average individual debt was $37,172, a record high, according to a study cited by CBS News.
What can you do to help your children graduate from college without having to provide a big “IOU” in exchange for a diploma? In the spirit of 529 Day, you might want to consider investing in a 529 plan. It’s certainly not the only means of saving for college, but it does offer some attractive benefits.
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