In the 1990s, Congress passed legislation to create 529 college savings programs to help families create a nest egg for college. With terrific tax benefits and lots of flexibility to move money among beneficiaries, an estimated 15.7 million current account holders have saved more than $480 billion.
May 29th (5/29) is National 529 Day and by extension May is frequently known as 529 Month, both great reminders and opportunities to save and invest for college. But remember, as May comes and goes, every month is a good time to save for college. Getting started, saving systematically (month over month), and putting time on your side are the keys to achieving your college savings goals and fulfilling your higher education dreams. Even small contributions made consistently can make a big difference over time and reduce your reliance on borrowing.
College admissions decisions are arriving – a joyous time for students relishing their success. A disappointing moment when dream schools say no. No matter which, these emotions will soon be overrun by the reality of making a school choice. And then figuring out how to pay the coming college bill. Lurking under it all: how much student loan debt will be required to get to graduation?
Calculating a precise Return on Investment (ROI) of a college degree is less important than taking actions that will result in better returns. We can put the calculator away and think simply about how to increase the Return on Investment for education.
High school seniors are now filling out college applications. Some students have the college of their dream in sight. Others will have to make a tough choice about which college they will attend.
So, how should families wade through emotional connections to certain colleges and make a decision that is rooted in logic?
Parents, take advantage of this huge opportunity to increase college savings with free cash from Uncle Sam!
The government is now sending eligible parents cash each month. This free money can supercharge a child’s college savings nest egg and reduce future student loan debt. As MyCollegeCorner likes to say: “Saving a dollar today is better than borrowing one tomorrow®"