Costs of College Continue to Rise Saving Early Makes a Difference

For Immediate Release
Contact: Joanie Griffin

ALBUQUERQUE, NM - From funding cuts to staff expansions, increased construction to facility maintenance, college costs are climbing to an all-time high. And the costs continue to increase year over year. The costs of higher education are rising at an annual growth rate of 7.1%, according to The Education Data Initiative. That leaves many students forgoing a college education or relying heavily on grants, loans, and scholarships–many of which are difficult to attain in the competitive pool of students.

As the saying goes, the best defense is a great offense. Planning ahead and saving early will help future college students navigate the ever-increasing costs associated with attending college or participating in an apprenticeship program. 529 Education Savings Plans are a great tool to ensure a student has access to higher education options.

“The cost of college continues to rise so it’s important to begin saving as early as possible,” said Natalie Cordova, Executive Director of Education Trust Board of New Mexico, the organization that administers The Education Plan®, 529 Education Savings Plan. “While costs continue to increase, financial aid has been decreasing. At The Education Plan, our goal is to help families prepare for and manage future education expenses and ease the huge burden of student loan debt. Saving with a 529 plan can assist families in financing a debt-free education.”

Funds in a tax-advantaged 529 Education Savings Plan can be used to pay for qualified expenses, including tuition, room and board, fees, and computer equipment at colleges, universities, trade or professional schools throughout the United States. A major advantage of investing in a 529 plan is its potential for tax-free compounded growth. Money in a 529 account grows tax-free and withdrawals are tax-free if the funds are used for qualified expenses. Several states also offer tax deductions for contributions into a 529 plan.

According to a 2021 CollegeBoard report, the cost for one year for a full-time student at an in-state public four-year university is $27,330–a price tag expected to increase at an average rate of 2.2% beyond inflation. Since 2011, annual college costs have increased 13% while available financial aid has decreased 18%, according to the CollegeBoard. Investing in a 529 plan can help offset that trend.

While starting early and contributing regularly into a 529 plan allows for more long-term growth, any contributions that fit your goals and budget will make a difference. Encouraging friends and family to contribute can also help grow the account.

To learn more about The Education Plan® or to begin saving today, visit


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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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