Schol­arShare 529 Proves Ef­fec­tive For Col­lege

Escalon Times - - NEWS -

To kick off Septem­ber’s Na­tional Col­lege Sav­ings Month, Cal­i­for­nia State Trea­surer John Chi­ang and Schol­arShare 529 are re­mind­ing Cal­i­for­nia fam­i­lies to start sav­ing for col­lege early.

“The cost of higher ed­u­ca­tion may be go­ing up, but that shouldn’t get par­ents down,” said Trea­surer Chi­ang. “Sav­ing for col­lege is one of the best things par­ents can do for their chil­dren and it doesn’t have to be a fi­nan­cial bur­den. Kids with a sav­ings ac­count in their name have a much bet­ter chance of avoid­ing crip­pling stu­dent loan debt when they grad­u­ate, so — dur­ing Na­tional Col­lege Sav­ings Month — there’s no bet­ter time to start sav­ing.”

While many stu­dents and par­ents are wor­ried about their abil­ity to pay for col­lege, ac­cord­ing to Sal­lie Mae, only six in 10 par­ents have ac­tu­ally started sav­ing for their chil­dren’s higher ed­u­ca­tion.

And for those par­ents who are sav­ing, data shows they are only sav­ing $18,000, on av­er­age, for their chil­dren’s ed­u­ca­tion. How­ever, ac­cord­ing to the Col­lege Board, a typ­i­cal pri­vate, non­profit col­lege charged $46,950 this past year for tu­ition, fees, and room and board; and those costs are only pre­dicted to in­crease fur­ther in the com­ing years.

That’s why 70 per­cent of col­lege stu­dents who grad­u­ate do so with a moun­tain of debt. The av­er­age stu­dent loan debt for the class of 2017 was $39,400 per stu­dent, up six per­cent from the pre­vi­ous year, ac­cord­ing to Stu­dent Loan Hero.

Those fam­i­lies, how­ever, who be­gin to save for col­lege early, in a tax-ad­van­taged man­ner, can over­come es­ca­lat­ing tu­ition costs. The Schol­arShare 529 Col­lege Sav­ings Plan makes sav­ing for col­lege easy. With no big, up­front in­vest­ment, get­ting started is sim­ple, af­ford­able, and stress-free. Par­ents can open a Schol­arShare 529 ac­count online in just 15 min­utes — and with as lit­tle as a $25 con­tri­bu­tion. All earn­ings are tax-free when used for qual­i­fied higher ed­u­ca­tion ex­penses, in­clud­ing tu­ition, room and board, com­put­ers, books, and other re­quired sup­plies.

Beyond the tax ben­e­fits, Schol­arShare 529 has a strong track record on in­vest­ment re­turns. In fact, the plan was re­cently ranked num­ber one in the na­tion for in­vest­ment per­for­mance, among all di­rect-sold 529 plans, based on a three-year and five-year in­vest­ment pe­riod end­ing June 30, 2018, ac­cord­ing to Sav­ing­for­col­lege.com.

Ad­di­tion­ally, Schol­arShare 529 al­lows grand­par­ents, as well as other fam­ily and friends, and even em­ploy­ers to make gifts to a stu­dent’s ac­count for max­i­mum growth po­ten­tial.

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