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Saving money for your children’s college education can be an overwhelming task. Over the last thirty years tuition at a 4-year public university has increased nearly 50% while the tuition at a 4-year private university has increased a staggering 110%. To meet these rising costs it is essential that you start saving today!
To help you save for tomorrow’s tuition you can invest in a 529 College Savings Plan. A 529 Plan is operated by a state, or educational institution, and designed to help families save for future tuition costs. There are two basic types of 529 Plans: Prepaid programs and Savings programs. Prepaid programs are designed for students wishing to attend in-state universities, however, the state sponsoring the prepaid tuition program will allow you to transfer the value of your contract to private and out-of-state schools (you may not get the full value depending on your particular state). If you decide to use a Savings program, the full value of your account can be used at any accredited college or university in the country. As long as the plan satisfies a few basic requirements, the federal tax law will also provide special tax benefits to you, the plan participant.
Every state now has a 529 Plan, however it is up to the individual state to determine how the 529 Plan operates. Please consult your particular states Department of Education to learn more about your 529 plan options.
With advanced planning you can secure the future of your children’s education and save for tomorrow’s tuition!
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