Glossary
F
- Family Member
A member of the family of a beneficiary includes the beneficiary’s spouse, the beneficiary’s child or descendant of the beneficiary’s child, the beneficiary’s brother, sister, stepbrother or stepsister, the beneficiary’s father or mother or an ancestor of the beneficiary’s father or mother, the beneficiary’s niece or nephew, the beneficiary’s aunt or uncle, the beneficiary’s son-in-law, daughter-in-law, father-in-law, mother- in-law, brother-in-law or sister-in law, the spouse of one of these family members, or a first cousin of the beneficiary. See also: Beneficiary.
- Federal Deposit Insurance Corporation (FDIC)
The FDIC provides insurance for bank deposits in U.S. banks, protecting them against bank failure.
- Financial Aid
Financial aid is money to help a student pay for college costs. Financial aid includes scholarships, grants, work/study and loans. These can be referred to as gift aid if they do not need to be earned or repaid.
- Financial Professional
A financial professional provides financial advice, information and financial products to clients. Financial professionals are typically registered with the SEC and/or state securities regulators.
- Fixed-Income Fund
A fixed-income fund is a bond fund.
- Funding Agreement
Under a funding agreement, assets are deposited with the funding agreement provider, and principal and a rate of interest are guaranteed to the depositor by the provider.
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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.
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.