According to Forbes and statistics from the National Center for Education Statistics (NCES), college graduates consistently have more employment prospects and make an average of 63% higher annual earnings compared to those without a higher education degree. Recognizing this correlation between education and success, The Education Plan® highlights the instrumental role that 529 plans play in future success and the importance of saving early. Even with just $500 saved, research shows, a student is three times more likely to attend college and four times more likely to graduate than those without any savings.
In the journey toward a successful future, investing in education is paramount. With the rise of inflation comes increases in the cost of living, educational resources, and the need for higher salaries. The Education Plan® 529 education savings plan is a vital tool for families aspiring to provide their children with the best education options. A 529 plan is a tax-advantaged education savings plan designed to make future education more affordable, setting the stage for students to reach their full potential.
"Preparing for the future means taking actionable steps toward education and career goals," emphasized Natalie Cordova, Executive Director of the Education Trust Board of New Mexico, the organization that administers The Education Plan. "As the economic outlook continues to focus on rising prices across the board, preparing families to obtain higher salaries later in life is an investment that can pay off for years to come."
The versatility of 529 plans allows families the flexibility to contribute what they can and save for a wide range of qualified expenses, including:
- Tuition and fees
- Books and supplies
- Room and board
- Educational special needs services
- K-12 tuition (up to $10,000 per year)
- Apprenticeship expenses
- Student loan repayment (up to $10,000)
Cordova continued, "529 plans empower individuals to take control of their future career paths by lessening financial worries and maximizing opportunities. The financial security provided by a well-planned education is immeasurable."
The Education Plan also provides essential tools and resources necessary to navigate the complexities of education financing, helping families make better informed decisions about future educational costs and savings options. Many online tools, including a glossary of terms, tax benefit information, a detailed FAQ, and a help center allow people to access information when needed at TheEducationPlan.com.
ABOUT THE EDUCATION TRUST BOARD
The Education Trust Board is the governing body for the New Mexico 529 education savings programs. A 529 education savings plan is a tax-advantaged account designed to help you pay for future education expenses. The State of New Mexico sponsors two plans: a direct-sold plan (The Education Plan) and an advisor-sold plan (Scholars Edge).
To learn more about the New Mexico 529 Education Savings Program, visit nmetb.org.