Santa Fe, NM, July 23, 2024 (GLOBE NEWSWIRE) -- With the cost of higher education continuing to rise, families across the nation are grappling with an ever-increasing financial lift. According to the ISS MI 2024 529 Industry Analysis, over the past year, tuition fees have increased by 24.9%, room and board costs have surged by 13.3%, textbook prices have jumped by 25.1%, and other miscellaneous education-related expenses have grown by 18.1%. These rising costs highlight the need for families to learn about and adopt effective saving strategies to manage future education expenses. The Education Plan®, a 529 education savings plan, offers an option to offset this growing challenge.
The Education Plan® provides a tax-advantaged way for families to save for their children’s future education and help reduce the reliance on student loans. "By investing in The Education Plan®, families can take proactive steps to manage education costs and lessen the financial strain," said Natalie Cordova, Executive Director of the New Mexico Education Trust Board, which administers The Education Plan®. "Our goal is to make higher education more accessible and affordable for families."
One of the key benefits of The Education Plan® is its tax advantages. Contributions to the plan grow tax-free, and withdrawals for qualified education expenses are also tax-free. Additionally, many states offer a state tax deduction for contributions. The plan’s flexibility allows funds to be used for a variety of education-related expenses, including tuition, books, and room and board.
The Education Plan® can also be used to fund tuition for K-12 education, not just post-secondary education. This added flexibility is particularly beneficial for families currently making payments for private school, as it provides a tax-advantaged way to manage those expenses.
The Education Plan® offers flexible contribution options to make it easy for families to save. Anyone can open an account with no initial minimum contribution requirement and contributions can be made at any time through a one-time gift or regular automatic contributions. Savings can also easily grow with the help of gift contributions from family and friends.
Despite the rising costs of education, the outlook for 529 plans is positive, with strong growth expected over the next five years, according to the ISS MI 2024 529 Industry Analysis. As more families recognize the benefits of these plans, The Education Plan® continues to adapt and expand its offerings to better serve the needs of families. The Education Plan® equips families with the information and resources to navigate the complexities of education financing, helping them make informed decisions and develop a tailored education savings strategy aligned with their financial goals. Many online tools such as a glossary of terms, tax benefit information, a detailed FAQ, and a help center allow people to access information when it’s convenient for them. The ReadySave 529 mobile app provides account holders with The Education Plan® an even easier way to access and manage their accounts with convenient and easy-to-use features.
With flexible contribution options and access to a variety of helpful tools, this invaluable resource enables families to start investing for future education with The Education Plan® at any stage in a student's life.
To learn more about The Education Plan® or to open an account, visit TheEducationPlan.com.
