Wednesday was national “529” day. The idea for recognizing May 29th as "529" day is to raise awareness of the 529 Plan for college savings is offered in all 50 states.
According to the investment firm Edward Jones, a recent survey shows that some 69% of all Americans are not aware that a 529 Plan is a college savings tool. The plan allows tax free investing into accounts that are used for offsetting college expenses. A study by the Institute for College Access and Success finds that students who take out college loans will finish with an average of $27,000 in debt.
College savings expert Greg Dossman with Edward Jones says he wants to help spread the word on the 529 Plan so that college graduates can finish school with much less debt.
“Figuring out the best plan for long-term savings can be unnerving for many families, which is why we want to use this month’s ‘529 Day’ to help educate parents about their options,” said Dosmann. “Taking the time to sit down with a financial advisor to discuss the pros and cons of certain state-sponsored 529 Plans and other savings tools can often be enough to kick-start the program. We suggest the first thing parents and grandparents think about is whether they want to position themselves to pay for all, some or none of their children’s or grandchildren's college expenses as this can shift the planning discussion. But in the end, pursuing higher education continues to be a lifelong goal for millions across the country, and by saving early and often, we can help our children graduate with less - or even no -debt.”
To compare 529 Plans across the U.S. click HERE