Add college savings to back-to-school shopping list
Published: August 12, 2010
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Pennsylvania Treasurer Rob McCord on Aug. 12 announced a “sale” on one of Pennsylvania’s two 529 college savings plans. Families that contribute to a Pennsylvania 529 Guaranteed Savings Plan account before Sept. 1 will receive the 2009-2010 academic year’s lower rates. After that date, credit prices may rise due to increases in tuition rates.
“The end of summer means back-to-school shopping for classroom essentials like backpacks and school supplies,” McCord said. “It’s also a great time to stock up on an educational investment that will serve your child long after the current school year – a Pennsylvania 529 Guaranteed Savings Plan account.”
McCord reminded parents that the current, lower prices won’t last long. On Sept. 1, Treasury will adjust credit prices to correspond to the tuition increases set by colleges and universities.
Parents who act now can beat the increase – simply contribute to the Pa. 529 GSP before Sept. 1. Contributions sent by mail must be postmarked on or before Aug. 31 and online contributions must be made by 10 p.m. EST on Aug. 31 at www.PA529.com. In addition to beating the clock on rate increases, families that open a new Pa. 529 GSP account before Sept. 1 will also receive free enrollment – a $50 savings.
“I hope parents will take advantage of these discounts,” McCord said.
Sponsored by the Commonwealth of Pennsylvania, and administered by the McCord Treasury, the Pa. 529 GSP is designed to help savings grow to meet the future costs of education. When used for qualified higher education expenses, the Pa. 529 GSP guarantees that contributions will grow at the rate of tuition inflation (subject to premiums and fees). Families saving through the Pa. 529 GSP receive tax-deferred growth on earnings and tax-free withdrawals when funds are used for qualified educational expenses.
Pennsylvania also offers a second 529 plan, the Pa. 529 Investment Plan, in which returns are based on performance of the financial markets. The Pa. 529 Investment Plan features low fees and more than a dozen conservative and aggressive investment options from Vanguard, one of the nation’s largest financial services companies. Families saving in the Pa. 529 Investment Plan also receive the same great tax advantages as those saving with the GSP.
Visit www.PA529.com or call 1-800-440-4000 to make a contribution.
