Santa Fe, NM – May 9, 2022 – Summer is fast approaching, and students will soon be advancing to the next grade level. As students end one school year and look forward to the next, it’s a great time to plan for the coming years and invest in a college savings plan through The Education Plan®.
“The next school year approaches fast, bringing students a year closer to graduation,” said Natalie Cordova, Executive Director of Education Trust Board of New Mexico, the state agency that administers The Education Plan® 529 savings plan. “Whether your student is graduating from kindergarten or their senior year of high school, it’s perfect timing to consider putting money into a savings plan for higher education.”
Starting a college savings plan is a smart way for students of any age to better prepare for college expenses. “Saving for a longer period of time by contributing early and regularly, even just small amounts adds up in the long term through compounding to build savings.”
The end of the school year isn’t the only reminder for families to open a 529 plan. May 29 is also National 529 Day, emphasizing the importance of investing in a college savings plan. 529s can be used for four-year or community colleges, career and technical schools, and registered apprenticeships. They can also be used for non-tuition expenses such as room and board, fees, books, and computers.
With the rise in college expenses, starting a 529 plan has become increasingly crucial in paying for higher education. According to CollegeBoard Trends in Higher Education 2021, the average yearly cost of attending a public in-state university is more than $22,000—approximately $88,000 for a four-year education. The average bachelor’s degree student borrows around $29,000, and the costs continue to increase every year. CNBC estimates that the cost of college has increased more than 25% within the last 10 years.
The Education Plan® is easy to set up and start saving. While regular contributions provide the biggest impact on account growth long-term, any contributions that fit into your budget will make a difference. Family and friends can also give a gift contribution to your 529 account through a one-time gift or a recurring contribution.
To learn more about the Education Plan®, visit TheEducationPlan.com or call 1(877) 337-5268.