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By: South Carolina State Treasurer Curtis Loftis, Administrator of Future Scholar College Savings Plan

December 17, 2024

It goes fast, doesn’t it? Just when you’re comfortable with the back-to-school routine, here come the holidays. Take a deep breath and enjoy the season – 2024 version.

But once the decorations are packed up and the wrapping paper is in the trash, I hope you’ll set aside a few moments to get ready for a very different kind of season: tax time. You’ll want to be sure to close out the year strong to be in the best situation when tax day rolls around.

Timing is everything

Taxes are usually due on April 15th of each year – unless the day falls on a weekend. However, this tax season will be different for some states. Because of the devastation of Hurricane Helene, all of Alabama, Georgia, North Carolina, and my state of South Carolina will have their taxes due on May 1, 2025. In addition, parts of Florida, Tennessee, and Virginia will have also have their taxes due on May 1, 2025.

Get motivated

Begin by estimating your federal income tax bill for the year. You can find your tax bracket and standard deduction information on the IRS website. Your federal tax estimate will motivate you to consider using a win-win strategy that can lower your state tax bill.

Save for the win

One of the best moves you can make to subtract from your state tax bill actually involves adding to your own education savings. By contributing to your 529 college savings account, you could reap the benefits of state tax incentives now. More than thirty states and the District of Columbia offer tax incentives to families who save with a 529 plan. These states allow families to deduct at least some percentage of their contributions from their taxable income. Four more states offer tax credits a family can use to offset state income taxes.

The tax savings can be significant. South Carolina allows residents to deduct 100% of the amount they contribute to Future Scholar, South Carolina’s 529 plan, on their SC state income tax return. It’s an excellent benefit for the citizens of my state. Review your plan to find out if you can benefit from tax savings, too.

Deadlines matter

Of course, there’s no deadline to contribute to your 529 account. However, if you want your contributions to qualify for tax savings for your 2024 tax returns, you’ll need to know your state’s deadline. Most states will have a deadline of December 31, 2024, to claim a deduction on your 2024 state income tax returns, but a few states, like South Carolina, allow contributions to be made until taxes are due. Be sure to consult your plan to determine the deadline for contributing funds you can claim on your 2024 return.

Be a front loader

The IRS has a special gifting feature that will allow a larger amount of money to be given at one time. Called frontloading or super funding, this feature gives your funds the ability to compound for a longer time than they would if you were making regular annual contributions.

Through frontloading, your 529 plan may be funded up to the 2024 annual exclusion of $18,000 for a single person or $36,000 for a married couple. When you front-load, you contribute a one-time gift of the amount that is usually allowed over five years – without paying gift taxes.

With frontloading, a single person can contribute $90,000 per child in one year and enjoy the benefits of compounding interest on a larger amount. The contribution will be removed from the contributor’s taxable estate and treated by the IRS as if $18,000 were given per year for five years. Of course, any contributions made beyond this amount over the five years could be subject to federal taxes. A financial professional can help you decide if front-loading could work for your family and your financial situation.

Earmark your refund

Expecting a tax refund in 2025? Decide today to use it to invest in your child’s future education. Earmark it for a lump sum contribution to boost your 529 college savings. That way, you know you’re using it for something meaningful.

Appreciate your genius

While you’re enjoying the last few days of 2024, take a minute to appreciate how wise your decision to save with a 529 account really is. You’re saving for college tax-free, and when the time comes to use those 529 funds to pay for qualified education expenses like tuition, books, computers, and room and board, you’ll be withdrawing your funds tax-free, too. Congratulations – genius move.

About the author:

Curtis Loftis is the State Treasurer of South Carolina. He also serves as the administrator of South Carolina’s Future Scholar 529 College Savings Plan. Visit treasurer.sc.gov or futurescholar.com for more information on ways to save through a 529 plan.

By Marissa Rowe, Executive Director,
Indiana Education Savings Authority

December 10, 2024

As a holiday baby (Dec. 28), I tend to pay close attention to holiday gifting. This started as early as I can remember, when my parents made sure they wrapped my birthday gift in something other than holiday paper. Laugh all you want, summer babies. The struggle is real for those of us who couldn’t have birthday parties at the park. Because it’s winter.

All bitterness aside, there are several realities for giving (and not just receiving) gifts during the holiday season. In no particular order:

  1. How do you make your gift stand out?
  2. Gifts should be personal and show that you care; and 
  3. You’re all tapped out and the budget is zero dollars.

A gift of or to a 529 education savings plan is the way to go this holiday season and will address the realities you face as a giver of the perfect gift. First, your gift will be unique and will stand out from the crowd. While more families than ever are saving in 529s, most gift-givers prefer to give a traditional gift. By gifting to a 529, you’re setting yourself apart and helping the family in a very tangible way with their education investments.

Secondly, it doesn’t get more personal or thoughtful than a 529 gift. You’re showing that you believe in the child’s dreams as well as their financial well-being. Every dollar you gift is one less they will have to borrow and pay back with interest. Reducing the need for student loans is a gift both the parents and child will appreciate.

In reality, money may be tight, and this holiday season will be all hugs, handshakes, and high-fives for gifts. That is perfectly fine. What you can do is set a reminder in your phone to make that gift contribution in the summer when funds are available…à la Christmas in July.

How do you give a gift to a 529? Simply ask the owner/parent/grandparent how their account receives gifts and follow those instructions. It’s no different than asking what the kids want for Christmas. Happy gifting!

About the author:

Marissa Rowe is executive director of the Indiana Education Savings Authority, which administers the Indiana529
savings program with more than $7.5 billion in assets under management in three plans. A proud first-generation college student, Marissa received her B.A. in Mass Communication from the University of North Carolina at Asheville and her M.A. in Philanthropic Studies from the Indiana University Lilly Family School of Philanthropy. She paid off her student loans in 2020 and has 529 plans for her nieces and granddaughter.

By David Bell, Vice President, Vestwell

December 3, 2024

In just a few weeks, we’ll be preparing to gather with friends and family to celebrate the end of another year with our various traditions – a favorite family recipe, matching pajamas, a heirloom decoration, and specially selected gifts wrapped with care. Promotions have been running since we turned off the lights on Halloween night – but what if you could wrap a gift with (almost) endless possibilities this year? A gift that could be imagined and re-imagined, a gift that could potentially be worth even more than your investment this year. What if this year, you started the tradition of supporting your loved ones’ future dreams by making a gift to their 529 account on Giving Tuesday?

When you gift to a 529 account, you provide several gifts in one:

A gift that could grow over time: Contributions of any size can add up over the years and have the potential for growth while invested. A new fun family tradition might be a family matching fund. Each family member can contribute a small amount of $25 to reach a target goal toward a new semester, tuition deadline, or more by the end of the year.

A gift of flexibility: Your loved one can choose which qualified distribution expense is best for them when they head off to school – tuition, books and supplies, room and board, and more. 529 plans can also support other aspirations like trade schools, apprenticeships, and fellowships.

A gift that wins awards: In 2023 and 2024, 529 Plans were selected as Good Housekeeping’s Best Parenting Awards.

This holiday season, consider giving a gift full of possibilities by contributing to a loved one’s 529 account – or better yet, set up recurring contributions to help them achieve their dreams. Ask your family and friends to share their 529 gifting information or see what gifting options your home state 529 program offers by visiting CSPN’s Find My State’s Plan tool.

About the Author

David Bell is Vice President at Vestwell, leading client relationships for 529 and ABLE programs. David has a long background in Financial Education and State Savings Programs.

Thanksgiving break is coming up, giving college students a chance to recharge. Whether they’re heading home, staying on campus, or traveling, it’s also a great time to get a few things done to benefit them in the long run.

5 things you can encourage your college student to do over Thanksgiving break:

  1. Catch Up on Sleep and Self-Care
    Your student needs rest after weeks of late-night study sessions and juggling responsibilities. Encourage them to use the break to get plenty of sleep, take walks, eat well, and focus on self-care. This downtime will help them recharge and finish the semester strong.
  1. Reconnect with Family and Friends
    Thanksgiving is the perfect time for your student to reconnect with loved ones. Whether sharing a meal with family or catching up with old friends, encourage them to take advantage of this break to strengthen those meaningful relationships. It’s a great reminder of the support they have.
  1. Get Ready for Finals
    With final exams approaching, this break is a good time for your student to get organized. Suggest they review syllabi, create a study plan, and gather their notes. A little prep now will help reduce stress when finals week arrives, giving them more confidence to perform their best.
  1. Review Their Finances
    Thanksgiving is a good time for your student to take stock of their finances. Whether managing spending, reviewing financial aid, or planning for upcoming expenses, this is an opportunity to develop better financial habits and set up a budget for the rest of the school year.
  1. Reflect and Set Goals for Next Semester
    Encourage your student to use the break to reflect on how the semester has gone so far. What went well, and what areas could use improvement? Setting goals for the next semester—whether boosting grades, joining new activities, or creating better routines—can help them start the spring with a clear focus.

Thanksgiving break offers a valuable chance for your college student to rest, reconnect, and get organized. While they enjoy their time at home, encouraging a balance of relaxation and productivity will help them return to campus ready to tackle the rest of the semester.

About the author:
Eric Bennett is the editor for College Countdown, a website maintained by ScholarShare 529 for families with college-bound kids. Eric has over three decades of experience in higher education managing recruitment and marketing, financial aid, and student development at three universities from Georgia to California to New York City. 

By Anita Kelley, Savings Division Director, State of Alabama Treasurer’s Office

Soon after my second child was born, I realized that I needed to start saving for both of my children’s higher education expenses. I had just graduated college myself five years prior to his birth. I was fortunate that my parents funded my education and didn’t leave me with any student loan debt to pay. Knowing how important that was for me, I knew that I wanted to do the same for both of my children. I was working at a bank and talked to one of our investment specialists who educated me on 529 accounts. I immediately opened accounts for both my daughter and son. We were a young family with very little disposable income, but I set up automatic contributions that went straight into their 529 accounts. It wasn’t much each payday, but it was a start, and I increased the contribution amount over time.

18 years went by so fast, and before I knew it, my daughter was ready for college. I knew I had not saved all that it would cost for her to attend, but I had a good amount that definitely reduced the amount I had to worry about. My son was two years behind her and had decided he did not want to attend college, but instead wanted to become a firefighter. That left me with the question of what to do with the money I had saved for him in his 529 account.

There are several options if the beneficiary of a 529 account decides to not go to college.

1. You can leave the funds in the account in case the beneficiary or another family member can use the funds at a later date to attend school.

2. You can change the beneficiary to another member of the family for their higher education expenses.

3. You can withdraw the funds as a nonqualified withdrawal. The earnings portion (not the amount you contributed) is subject to federal and state income taxes and a 10% federal penalty tax.

I opted to change the beneficiary to my daughter who was currently a junior in college. The funds I had saved for him were now helping her and further reduced my out-of-pocket expenses!

It’s also important to note that in recent years, 529 accounts have become so much more flexible regarding their usage. The types of institutions that are now eligible for funds from a 529 account include not only four-year colleges and universities, but community colleges, trade, technical and vocational schools, as well as registered apprenticeship programs. So, if your child decides not to attend a traditional four-year school, the path they do go down may still be one that their 529 account can be used for.

After my daughter finished school, I kept her account open. I am now making automatic deposits into the account again, but this time the funds will be used for my soon-to-be granddaughter who made her entrance into the world in September! After her birth, I will change the beneficiary on the account from her mother to her and the cycle will begin again. Saving for a little one’s future, no matter what that future might hold.

About the author:

Anita Kelley is the Savings Division Director for State of Alabama Treasurer’s Office. Anita has been with the State of Alabama Treasurer’s Office for ten years as Director of the Savings Division, which oversees the Alabama ABLE Savings Plan, CollegeCounts: Alabama’s 529 Plan, and PACT (Prepaid Affordable College Tuition). She has previously served as Treasurer of The College Savings Plan Network and Co-Chair of the CSPN Communications Committee. Prior to working for the Treasurer’s Office, Anita was a Banking Center Manager and Vice President at BBVA Compass for 18 years where among other things, she sold 529 accounts to clients. She graduated from Huntingdon College in Montgomery, Ala.

By Jeremy Rogers, Director, New York 529 College Savings Program

November 12, 2024

Growing up there was never any real doubt in my mind that I wanted to serve in the military after high school.  While college was always something that I figured could be an option down the road, it never really felt like a path I would go to right away. While this was mostly due to my desire to serve our country, the concern around costs to attend college was a factor. Growing up in rural Illinois, the costs of higher education always felt like too much of a hurdle for my family.

Looking back there was only one time that I really took a step back to re-think my decision to enlist in the Navy. That was when my father offered to sell our 80 acres of farmland to pay for college. The weight of that offer was immense to me as a teenager and truly made me rethink my plans. While he rented the land to a neighbor, it represented my father’s dream of someday farming his own land after years of working as a mechanic and retiring from the Army reserve. For him to be willing to give up that dream so that I could attend college right out of high school really highlighted the lengths that parents will go to provide for their children’s future, and the sacrifice he was willing to make for my future. While this offer caused significant internal reflection, I ultimately knew that serving in the military was the right decision for me.

Following my time in the service, and after giving a few different careers a try, I ultimately utilized the Post 9/11 GI Bill to attend college as a full-time student. Becoming the first person in my family to receive a bachelor’s degree felt like an incredible accomplishment, but it wasn’t without struggles. As anyone who has utilized the GI Bill knows, it offers amazing benefits and covers most of the major higher education expenses, but there are still costs that veterans or their family will have to cover. For example, the GI Bill provides $1,000 per year for books and supplies, which can be used up quickly if you are taking a full course load. Additionally, the GI Bill only provides 36 months of benefits, so while it covered all my undergraduate work, I still needed to take out student loans when I went back to school for an MBA. This is where savings in a 529 account can supplement the benefits that veterans’ or their families receive from the GI Bill.

This Veterans Day I strongly encourage my fellow veterans to explore the benefits that their service earned them, especially the GI Bill, if available to them. Visit the U.S. Department of Veterans Affairs website for more information

“As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them.”
‒ President John F. Kennedy

About the Author

Jeremy Rogers is the Director of the New York 529 College Savings Program (NY 529) and previously served as a Nuclear Machinist Mate in the United States Navy. NY 529 includes the nation’s largest direct-sold program, New York’s 529 College Savings Program Direct Plan, which has over $43.7 billion in assets under management across nearly 1.1 million accounts, as of September 30, 2024. For more information visit nysaves.org or call 1-877-NYSAVES (1-877-697-2837).

By Luke Minor, Director of Washington State’s College Savings Plans (WA529)

November 5, 2024

With Halloween behind us, one would normally ditch the thrills and chills and go all in on sweater weather and copious quantities of pumpkin spice-flavored whatnots. But this November, the fright fest continues for me in light of a recent and shocking revelation…

I was at a financial empowerment conference last month focused on increasing banking access for underserved individuals and communities. It was a powerful and eye-opening event that gave me a lot to consider in how well my organization supports Washington residents in saving for future education and career readiness training. But something I learned that day continues to haunt me – when my daughter turns five in just three short months, her spending habits will become chiseled in stone for the rest of her life and there’s nothing I can do to stop it.

In the modern misinformation age, I was naturally skeptical and dug a little deeper. It turns out that this dynamic has been studied and findings suggest that children begin developing associations with money and spending habits at a very young age. And interestingly, it appears that such habits do not necessarily reflect those of their parents. So, um, yeah…my almost five-year-old, who is already gaining independence at an alarming rate, will soon be destined for a life of frivolous indulgence or miserly self-deprivation and I will have no say in the matter. As Scooby Doo’s pal Shaggy would say “Zoinks!”

Of course, I’m being alarmist and am at risk of spreading my own misinformation, so let me set the record straight. While sobering, I am treating this new point of learning as an opportunity to reexamine my own financial priorities and help my daughter develop a healthy relationship with money. And importantly, I am inspired to work harder in helping financially empower families and individuals throughout my state and across the country.

The good news is that collectively, organizations across sectors and localities already have countless resources and policy interventions to help. The challenge is how to best knit together this patchwork so we can aid as many individuals and families as possible in their journey towards building their education, financial security, and generational wealth. We discussed this at length at the conference mentioned above, and were able to tease out several actionable steps we can take:

This speaks to the immense value and impact that organizations such as our very own CSPN, ASPN, and NAST wield. For years, I have marveled at the collective power our association to share best practices, build cross-sector relationships, and advocate for positive change at the systems level. My call to action for all of us within CSPN is to build on this already strong foundation. Let’s keep up the great work, grow our villages, and not be overcome with same fear I started off this conversation with! Here are some ideas to get us going:

As that cliché and sometimes cringy motivational posters in office walls across the country persistently remind us: “Teamwork makes the dream work!”

_____________

About the Author

Luke Minor is the Director of Washington State’s College Savings Plans (WA529), which include the GET Prepaid Tuition Program and the DreamAhead College Investment Plan. Since 1998, tens of thousands of students have used more than $2 billion of their WA529 savings to attend colleges in all 50 states and at least 15 foreign countries. In his free time, Luke enjoys getting outside to hike, ride bikes, and even splash in a puddle or two with his wife, rambunctious four-year-old, and young-at-heart dog.

By Rachel Biar, Deputy State Treasurer for Savings Programs, Nebraska

October 29, 2024

Saving for higher education expenses may seem like an overwhelming task for individuals and families alike. A few of the most common and fundamental questions we encounter are: How much should I save? Where should I start? Can my family help?

To help conquer some of these most pressing concerns, let’s talk about the top savings challenges you and your family may face—and tips to help overcome them.

“It’s hard to get started.”

Saving for higher education is an investment in the future, and I think you’ll be surprised just how simple it can be to get started with a 529 savings plan. 529 plans provide options for every level of investor. For most plans, there is no minimum amount needed to open a 529 account and there are no hidden fees you need to watch out for. Once you’ve opened your account, you will be able to contribute when it fits your budget schedule, and you will have access to your account giving you the flexibility to monitor your progress along the way.

“I don’t know how much to save.”

Mapping out a budget can help you get started and assist you with your savings goals. Additionally, most 529 plans offer a College Savings Planning Calculator. This tool provides savings projections tailored to your specific goals so that you can determine your contributions and save with confidence. One of the great benefits of saving with a 529 account is that you choose the amount to save in a way that best works for you while working toward your financial goals.

“I don’t have enough time.”

Life is busy, and we and our budgets often get pulled in many directions. When you feel overwhelmed, take a moment, and realize it’s never too late to start saving for education costs. Sometimes just starting is all you need to do. Begin saving as early as it fits into your budget and try to save as often as possible to be prepared for the expenses associated with higher education. Setting up an automatic monthly contribution is a terrific way to keep your savings goals focused.

“It’s hard to do it alone.”

With a 529 account, it’s easy for you to invite family and friends to join in your savings journey. Loved ones can help boost your savings efforts by using free online gifting services provided by your 529 plan or by using 529 gift cards. These options are user-friendly and typically do not require added fees. It’s okay to be transparent with friends and family members about savings goals. Don’t be afraid to ask loved ones to consider sending gift contributions for holidays, birthdays, and special occasions. You might be thrilled how happy they are to help you!

As the costs of higher education continue to rise, it can ignite fears for anyone. It is increasingly necessary for all of us to be aware of the diverse options available to finance educational expenses like tuition, room and board, books, supplies and more. For all those looking to pursue higher education, we are with you and here to help every step of the way. 529 savings plans are a useful and simple savings method offering easy enrollment, flexible contribution setup, tax advantages and ongoing account management.

Fear can have a significant impact on life and your financial success. Are you ready to defeat your higher education financing fears? All of us who work with 529 savings plans are here for you! We are dedicated to helping you make saving for college less scary, and we are here to help you continue working towards your higher education savings goals. Don’t let fear hold you back. Start saving with a 529 plan today!

About the author

Rachel Biar is Deputy State Treasurer for Savings Programs in Nebraska and serves as Past Chair of the College Savings Plans Network. In her role she serves as the Director for the NEST 529 Education Savings Program. The Nebraska Educational Savings Trust (NEST) provides four plans: NEST Direct College Savings Plan, the NEST Advisor College Savings Plan, Bloomwell 529 Education Savings Plan, and the State Farm 529 Savings Plan. The Nebraska State Treasurer serves as the Program Trustee. Union Bank & Trust serves as the Program Manager, and all investments are approved by the Nebraska Investment Council. Families nationwide are saving for college using the NEST 529 plans, which have $7.2 billion in assets and 300,000 accounts. Visit NEST529.com and treasurer.nebraska.gov for more information.

By Lael M. Oldmixon, M.Ed , Executive Director, Education Trust of Alaska

It’s October, and we must take advantage of every opportunity to make metaphors about sweets treats like the benefits 529 savers are reaping with updates to the IRS Tax Code and the FAFSA. The past few years have brought significant changes to education savings, especially with the updates to the FAFSA and the enhancements to 529 plans through the SECURE Act and SECURE 2.0. The changes have two significant benefits and address barriers that have spooked potential savers for years! 

Changes to Free Application for Federal Student Aid (FAFSA). 

The FAFSA has undergone a significant overhaul, simplifying the application process. The redesigned form is more user-friendly, with more straightforward instructions and fewer questions. The effort to improve the FAFSA process is one many in higher education hope will increase access to need-based and other Federal Aid. 

The FAFSA Simplification Act (2022) also had positive takeaways for 529 beneficiaries. The Act, which went into effect in 2024, no longer considers 529 plans owned by friends, relatives, or grandparents as student assets in the Federal Aid calculation. Withdrawals from these accounts will no longer count as student income and won’t directly impact a student’s Federal financial aid eligibility.  

Even though the impact was quite small before, this change has removed a barrier and area of concern for many grandparents, friends, and relatives who wish to help their loved ones save for future education. 

Find more about the changes to the FAFSA at https://studentaid.gov/.

Changes because of SECURE Act 2.0 

The SECURE Act of 2020 included two provisions that expand 529 allowable educational expenses, including student loan payments (with a lifetime cap of $10,000) and qualified apprenticeship program expenses.

In late 2022, Congress passed SECURE Act 2.0, which expanded retirement benefits and included an enhancement to the 529 plans: making rollovers of unused funds to a Roth IRA a qualified expense. 529 plan owners can roll over up to $35,000 of funds into a Roth IRA for the beneficiary. The rollover is tax- and penalty-free, meaning beneficiaries can avoid taxes and penalties for nonqualified withdrawals while boosting their retirement savings.

To find out more about Secure 2.0, visit https://www.savingforcollege.com/article/roll-over-529-plan-funds-to-a-roth-ira.

Savers who hope for more sweet changes to 529 plans in the future can rest assured that the superheroes at the Colleges Savings Plans network are advocating for changes that will make saving easier, expand accessibility for all types of educational pathways, and tackle the multi-trillion-dollar monster that is student debt in the U.S. 

About the author:

Lael M. Oldmixon, M.Ed , is the Executive Director of the Education Trust of Alaska, which offers Alaska’s three 529 plans, Alaska 529, the  T.Rowe Price College Savings Plan, and the  John Hancock Freedom 529. She lives in Alaska with her spouse, two children, and two dogs. 

By Trisha Good, Executive Director, Ohio Tuition Trust Authority

National Transfer Student Week, set for Oct. 21-25, 2024, focuses on the education journey of students who start at community colleges or trade or vocational schools and then transfer to a four-year college.

Not only is a community college a good way to transition from high school to a higher education institution, but starting at one can help families save more funds in their 529 accounts as the attendance costs are usually less expensive. Therefore, the number of credits a student can transfer from a lower-priced institution to a higher-priced one can significantly lower the costs of a higher education. 

If you look at the national average price, a credit hour at a community college credit hour costs $150, while the average cost of a credit hour at a four-year public institution is $406. If your child earns 10 credit hours at a community college on required core classes that will transfer to other four-year program schools, the average cost would be $1,500. If your child took the same 10 credit hours of required core classes at a four-year college or university, the average cost would be $4,060. By taking the same prerequisite courses that will transfer to a four-year program, you could save $2,560 in your 529 account by starting at a community college.

Like saving for college, the key is starting the transfer planning process as early as possible. Once at a community college, your student should tell an academic advisor that they eventually want to transfer. With that information, they can choose courses that will completely transfer to the next college. And once your student knows where they want to transfer, they will need to contact their current school’s transfer office (usually in the registrar’s office) for advice on how to prepare. Then, they will also need to contact their future college’s transfer office for their recommendations and transfer policies. 

Taking general education courses at a lower-priced community college is a smart way to save money in your 529 account and potentially have your student graduate early. If interested, contact your child’s home school’s transfer office to find out where the school has transfer agreements, and the courses guaranteed to transfer and apply toward their degree. 

Prior Learning Assessments (PLA) can also gain your student transfer credits. PLAs evaluate a student’s learning outside of a traditional educational environment. Your student can earn college credits in one of two ways. One way is credit by exam, like tests created by the College Level Examination Process or CLEP. The other way is through a portfolio that contains a student’s applicable education learning. Members of the military and veterans can also turn their military experiences into credit. The American Council on Education (ACE) created college credit recommendations surrounding the Joint Services Transcript (JST), which the Army, Marine Corps, Navy, and Coast Guard use. 

Transferring credits from a community college to a four-year program can reduce college costs and stretch your 529 savings funds. If you and your student are deliberate with your actions, and diligent in your research, the transfer process can work well for you and your college savings. 

If you’d like to learn more about saving for your children’s future higher education, visit collegesavings.org or search for your home state’s 529 program. 

About the author: Trisha Good is the executive director of Ohio Tuition Trust Authority. Since 1989, Ohio Tuition Trust Authority has sponsored and administered Ohio’s 529 College Savings Program, CollegeAdvantage. Ohio’s 529 Plan oversees more than 676,000 accounts and over $17.6 billion in assets as of June 30, 2024. Visit CollegeAdvantage.com or call 1-800-AFFORD-IT (233-6734) for more information.