Alleviate Student Debt Burden By Planning Ahead

For Immediate Release
Contact: Joanie Griffin
505.261.4444
jgriffin@sunny505.com

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.

 

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For more information about The Education Plan, call 1.877.337.5268 or view the Plan Description and Participation Agreement, which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing.

Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You also should consult a financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 plan(s), or any other 529 plan, to learn more about those plan’s features, benefits and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

The Education Plan is administered by The Education Trust Board of New Mexico. Ascensus College Savings Recordkeeping Services, LLC, the Program Manager, and its affiliates, have overall responsibility for the day-today operations, including investment advisory, recordkeeping and administrative services. The Education Plan’s portfolios invest in: (i) mutual funds; (ii) exchange traded funds; and/or (iii) a funding agreement issued by New York Life. Investments in The Education Plan are not insured by the FDIC. Units of the portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns will vary depending upon the performance of the portfolios you choose. You could lose all or a portion of your money by investing in The Education Plan depending on market conditions. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences.

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The Education Plan® and The Education Plan® Logo are registered trademarks of The Education Trust Board of New Mexico used under license.

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Not FDIC-Insured. No Bank, State or Federal Guarantee. May Lose Value.