The expenses associated with higher education continue to increase, contributing to the escalation of student debt. According to the Education Data Initiative, the average student loan debt growth rate outpaces rising tuition costs by 39%. With these numbers expected to continue to grow, families should begin college and education expense planning as early as possible. The Education Plan® 529 education savings plan provides valuable resources for students and families to make informed decisions about their education and help deter the burden of student debt.
529 education savings plans allow anyone to start saving for college early and take advantage of the power of compounding interest and long-term growth. 529 Plans provide tax benefits, enabling contributions to grow tax-free and offering families more financial flexibility. With diverse investment options, families can customize their savings strategy, aligning it with their unique financial situation. The funds can be used for a wide range of educational expenses, including housing, books, electronics, and other related costs–providing families with the freedom to allocate funds where they are most needed.
"With the flexibility, tax advantages, and wide range of qualified expenses offered by 529 plans, families have the opportunity to take control of their education savings and create a solid foundation for their children's academic journey,” said Natalie Cordova, Executive Director of the Education Trust Board of New Mexico, the organization that administers The Education Plan®. “It's a strategic investment that empowers families to make education more accessible and affordable.
Additionally, as the education-related financial planning landscape becomes more complex, The Education Plan® offers tools and resources necessary to navigate the complexities of education financing, ensuring families make informed decisions about their future educational investments. Many online tools, including a glossary of terms, tax benefit information, a detailed FAQ, and a help center allow people to access information when it’s convenient for them.
For more information about The Education Plan® please visit www.TheEducationPlan.com.