SANTA FE, NM - July 26, 2022- As student debt continues to grow, and the cost of tuition continues to climb, saving for a loved one’s education is more important than ever. According to the Education Data Initiative, 43.4 million individuals have student loan debt, and the average borrower in the United States has approximately $37,014 in student loan debt. This gives rise to financial planning and avoiding the accumulation of debt for future students. As a way to ease the burden of student debt, The Education Plan® – a 529 college savings plan – provides families with a tax advantaged way to save for future educational expenses.

“A 529 college savings plan can be a great way to keep up with rising tuition costs and inflation,” says Natalie Cordova, Executive Director of Education Trust Board of New Mexico, the state agency that administers The Education Plan® 529 savings plan. “Contributing to a 529 account now can alleviate the need for student loans in the future when it is expected higher education costs will be even higher than they are now.”

High student loan payments may diminish the purchasing power of salaries for graduates and limit future financial endeavors, including saving for retirement. However, The Education Plan® allows flexible options for parents, grandparents, and other friends and family to contribute and help cover higher education expenses, thus curbing the need to rely solely on student loans with high interest rates that can severely impact the standard of living upon entering the workforce.

The Education Plan’s 529 savings plan allows contributions with no required minimum and the account holder can make contributions whenever they choose. Even small contributions add up, and the earlier an account is opened in a child’s life, the more the account can grow through compounding. Opening a savings account at any time can provide a positive difference. According to the Center for Social Development, students with just $500 saved for college are three times more likely to go to college and four times more likely to graduate. Savings in the 529 account can be used for qualified expenses including tuition, room and board, books, supplies, and computers at community colleges, universities, trade schools, or vocational schools across the United States.