Santa Fe, New Mexico, Oct. 29, 2020 (GLOBE NEWSWIRE) -- For many people, education expenses are having a profound impact on long-range financial planning. According to a survey conducted by The Harris Poll on behalf of TD Ameritrade, education spending ranked as the No. 1 financial disruptor among Americans. The Education Plan®, a 529 college savings plan, can help reduce the strain of higher education expenses by helping families save money for college, so there’s less need for student loans.
The Education Plan® offers tax benefits as well. Contributions may be tax-deductible from state income tax, depending on where the investor resides. Contributions grow tax-free, and there is no tax when funds are used for qualified education expenses. The plan can be used to pay for traditional college, community college, professional school or trade school tuition, as well as other expenses including computers, software, room and board and meal plans.
"With The Education Plan®, every dollar saved is a dollar you won’t have to borrow or pay interest on later," said Ted Miller, Executive Director of the Education Trust Board of New Mexico, the organization that administers The Education Plan®. “Plus, every dollar saved may benefit from compounded growth, giving the account the potential to grow faster and further reduce the reliance on loans.”
“Today, many young Americans are struggling to save for the future while paying off their past,” said Tom Butch, Managing Director of Retail Distribution at TD Ameritrade. “Between paying down student loans, contributing to retirement and saving for their children’s college, they are striking a delicate balance to set themselves on a path to long-term financial security.”
It’s never too late to start saving. Studies show if a family has as little as $500 saved for college, a child is three times as likely to go to college and four times as likely to graduate.
To learn more about the Education Plan®, visit theeducationplan.com or call 1(877) 337-5268.