Fee payment deadlines have a tricky way of sneaking up on you. Every semester, 529 plan service centers receive frantic calls from parents and students trying to expedite a withdrawal from their 529 account. Granted, while this last-minute rush is stressful, it’s still far better than not having any savings to draw from. 

This situation is completely avoidable. While transferring funds from a 529 account to a student’s university account isn’t an instant process, the transfer can happen relatively quickly in most cases. To keep your semester on track, please heed this guidance when you need to take a withdrawal this fall!

Generally, there are four ways to request a withdrawal from a 529 plan, and they can usually be initiated online or by phone. (Note: Your plan may offer additional options. Also note: It is generally advisable for tax purposes to select the student as the payee.)

– Send a check to your address of record: The funds are mailed directly to you, and you pay the school.
– Transfer the funds to your bank account on file: Funds are sent electronically to your bank.
– Send a check to the school’s accounts payable address: The 529 plan mails a check directly to the school. Important: You’ll need to provide the 529 plan with the school’s name and address, the student’s name and student’s ID.
– Electronic transfer (ACH) to the school: Funds are sent directly to the school electronically. Again, ensure the name of the school and the student ID are attached to this request.

As a rule of thumb, request your withdrawal at least 10 business days before the fee payment deadline. However, you should add extra time to your buffer if:
– A check is being mailed to you or the school.
– You are linking a new bank account to your 529 plan (in some cases, safety holds can prevent withdrawals for up to 15 days after linking).

Pro Tip: Consider sending funds directly to the school via electronic options like ACH or other services offered by your plan. While some plans charge a small fee for faster electronic service or overnight express check shipping, it may be worth it to avoid late charges.

What Happens if You Miss the Deadline?
The consequences of missing a fee payment deadline can range from costly late fees to being dropped from your classes for non-payment. Trust me, there is nothing fun about paying extra penalties or losing your seat in a required course!

If you realize you won’t make the deadline:
1. Contact the school immediately: Call the business office or accounts payable department and ask if they offer a temporary deferred payment plan.
2. Use a backup payment method: Pay the amount out of pocket from a personal bank account or credit card to bridge the gap (just be aware that universities often charge a convenience fee for credit cards), then reimburse yourself from the 529 later.

The takeaway: Save the date, schedule your withdrawal at least 10 business days in advance, and follow up with the university to confirm the funds were successfully applied to the account.

Pay your fees on time so your student can get down to the real business of being a student! 

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 Plan. She lives in Alaska with her spouse, two children, and two dogs. 

By Jonathan Hughes, Associate Director of College Planning and Content Creation, Massachusetts Educational Financing Authority

June 24, 2025 (reprint from June 2024)

If there is one pernicious myth that I could stomp out of existence, it would be this one: “I can’t save any money for college because the financial aid office will see it, and then I won’t receive any financial aid.” Though this is a common belief among families with college-bound students, it’s not true. Let me explain.

Financial aid is awarded on two bases: merit and financial need. When you hear about academic, artistic, or athletic scholarships, these are examples of merit-based aid granted to recognize student achievement. In most cases, family finances are not considered when awarding merit-based aid.

Most financial aid is need-based. When applying for financial aid, families are asked to submit financial aid applications, including the FAFSA^®. Based on the information reported, including income, assets, taxes paid, and family size, students receive a Student Aid Index (SAI). This formula-calculated figure is intended to represent a family’s financial strength and ability to pay for college. A low SAI means more eligibility for financial aid. Most people assume that saving for college will result in a high SAI and, therefore, less financial aid eligibility.

What most people need to know is that most of the weight in the SAI calculation is given to income, not assets. In fact, the SAI formula used by every college and university only takes into account, at most, 5.6% of parent total assets, which include college savings accounts. This means if a family saved, for example, $50,000 for college, the SAI formula would only include $2,800 of that in the student’s SAI. So, the impact of saving for college on financial aid is minimal, to say the least. And remember, if a family has saved $50,000 for college costs, that means they’ll have $50,000 to use for the college bill that they won’t need to borrow and pay back later with interest.

College savings accounts started by grandparents have even less effect on financial aid because they’re usually not counted at all. In the past, grandparent contributions from a college savings account toward a college bill counted as student income on the FAFSA, which had a detrimental effect on that student’s financial aid eligibility in later years. That treatment has been changed. Now, college savings accounts owned by grandparents (as well as aunts and uncles) and distributions from those accounts are not asked for anywhere on the FAFSA. The CSS Profile, a financial aid application used by roughly 200 colleges across the country, does ask for information about relatives who plan to provide funds to help pay for college expenses, but it’s up to each college whether or not that information is even considered when awarding financial aid.

Over the years, I’ve spoken with many families who are very concerned about the impact that saving for college will have on their child’s financial aid. But their minds are put at ease once I explain how the SAI formula works. In all my years working to guide parents through college planning, I’ve never spoken to one parent who has regretted saving. In fact, the most common sentiment I hear is, “I wish I had done more.” 

Our message to families should be one of encouragement and education, letting them know that if they haven’t started saving for college, they should begin today. 

About the author:

Jonathan has worked at Massachusetts Educational Financing Authority (MEFA) for 20 years, helping families in Massachusetts prepare for college. As Associate Director of College Planning and Content Creation, he provides guidance on planning, saving, and paying for college to students and their families and serves as host of the MEFA Podcast.

By Rachel Biar, Deputy State Treasurer for Savings Programs, Nebraska & Past Chair, CSPN

March 15, 2025

Cue the gowns and tassels: Graduation season is officially here!

Whether your loved one is graduating from kindergarten, elementary, middle school, or high school, he or she has achieved a milestone that is cause for celebration.

This year is a special year for my family as my oldest nephew graduates from high school this month. Like so many of you this time of year, I am amazed at how fast time flies. I still remember opening his 529 plan savings account when he was just a baby. It has been joyful to watch him grow, learn, and become an energetic, intelligent, driven, and kind young man. As we celebrate this special graduation milestone, he will receive an extra contribution into his 529 plan account to help prepare him for college this fall.

As you think about the graduates in your life while browsing the aisles searching for the right gift, consider a contribution to a 529 account. 529 plans make it easy to show loved ones how much you care. A 529 contribution can make a meaningful graduation gift at any age.

Kindergarten Graduates: Give the Gift of Time

In kindergarten, higher education may seem like a long way off. But one of the best gifts that you can give your young graduate is an early start on their college savings journey.

Simply put, saving for a longer stretch of time creates more opportunities to contribute and grow your savings. Because 529 account earnings are state and federal income tax-deferred, the full earnings amount remains in your account and grows with no money being subtracted to pay current tax obligations. Consequently, earnings happen more tax efficiently, helping to increase your account value even faster and maximize earnings potential associated with market growth.

Given the structure of compounded tax-deferred growth, it is in every kindergartener’s best interest to get an early start on his or her 529 plan account. This spring help your graduate build that base, and encourage friends and family to contribute as well.

Elementary and Middle School Graduates: Give the Gift of Motivation

Graduating elementary and middle schoolers are eagerly anticipating their next steps, whether that be middle school or high school. Dreaming about new classes, friends, activities and accomplishments, the future is full of limitless opportunities. Show these graduates that you believe in their future success, and that the sky is the limit, with a 529 gift contribution.

If your graduate is not familiar with the college savings process, a gift contribution is also the perfect spark for a conversation about the hard work and dedication that goes into achieving your dreams. He or she will spend the next few years preparing for higher education and beyond – with a gift contribution, demonstrate the crucial role that college savings will play.

High School Graduates: Give the Gift of Opportunity

Even at high school graduation, it is not too late to give the gift of college savings. After all, higher education brings a variety of expenses. 529 savings can be used to cover many of them, from tuition and fees to supplies, necessary technology, and even room and board. 

The more of these expenses new college students can cover with their 529 plan savings, the more they will be able to focus extra funds in other areas, such as building emergency funds, exploring the world, or saving for the future.

Regardless of a student’s age, higher education is a gift that will last a lifetime. To learn more about your 529 plan’s gifting options, find your state’s 529 plan at our link: https://www.collegesavings.org/find-my-states-529-plan and give the gift of education savings for all the graduates in your life who are taking the next step toward their futures.

When you do, like me, you will reflect on the memories made, you will celebrate your graduate’s achievements, and you will have a sense of pride knowing you have helped them in their education savings journey. And that is a special gift that will last a lifetime.

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 $7.1 billion in assets and more than 302,000 accounts. Visit NEST529.com and treasurer.nebraska.gov for more information.

Is your child dreaming of what comes after high school? Whether it’s a four-year college, community college, trade or technical school, an apprenticeship, or a certificate program, the savings in your Ohio 529 CollegeAdvantage account will pay for those qualified expenses.

You should also look at scholarships to maximize your funds in your 529 account. Scholarships are free money that will not have to be paid back. Together, 529s and scholarships are a powerful team as they work together to reduce the need for student loans.

According to the 2024 “How America Pays For College” study by Sallie Mae, families use scholarships and grants to pay for up to 27% of educational expenses. According to the study, the average amount of scholarships from schools was $8,250. That dollar amount shows how scholarships can be a critical part of your game plan to cover your child’s college or career training. Here is some guidance on finding those scholarships.

Start the scholarship search early

You should start the scholarship search at least a year before your student heads off to their next chapter after high school. Some scholarships have deadlines that are at least a year from when these funds would be released. So, if your student would like to compete for these scholarships to use their first year of college, they will need to fill out the application the summer prior to their senior year of high school.

It will take time for your students to research and find all the available scholarships for which they qualify. It will also take a good amount of time to fill out the scholarship applications and write the necessary essays.

Where to begin

Start your scholarship search by visiting Federal Student Aid, an office of the U.S. Department of Education. This is the federal agency where you will fill in the Free Application of Federal Student Aid (FAFSA). The agency also offer guidance on scholarships and Pell Grants, and has sources like a free scholarship search tool.

Also, check with the schools and institutions where your child wants to pursue their education. They may be able to point you to other scholarship resources like state agencies and scholarships or aid at the school.

Visit high school counselors

An appointment with your student’s high school counselor is a smart move. Counselors have access to resources and scholarship tools to point your student in the right direction. Counselors also can offer guidance on scholarship essays, and help your child prepare for any scholarship interviews. They can also help your students in figure out which teachers to ask for recommendation letters to strengthen their applications.

Search for free scholarship websites

There are many free online scholarship sites to research. On these sites, your child will create a profile with their academic scores, community, or volunteer service, athletic or academic activities. Students will then be matched with eligible scholarships. 

Check for local scholarships offered in your area. Local businesses could also offer scholarships for students who want to study in a specific area of study or in a certain vocation or technical skills. Local service organizations like Kiwanis and Rotary Clubs also offer scholarships.

As local and statewide scholarships draw from a smaller pool of applicants, there may be less competition and therefore, better odds of receiving these scholarships.

Always apply for small dollar scholarships. If your student earns several of these, their scholarship total will grow. There may also be fewer applicants for these scholarships so your student’s application may stand out in a smaller crowd. 

Scholarships and 529 plans are perfect team for a debt-free education. To learn more about 529 plans, visit My State’s 529 Plan on College Savings Plan Network’s website to learn about all the tax advantages and benefits of saving in your home state’s 529 college and career training 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 529 CollegeAdvantage. Ohio’s 529 Plan oversees more than 678,700 accounts and over $18.2 billion in assets as of December 31, 2024. Visit CollegeAdvantage.com or call 1-800-AFFORD-IT (233-6734) for more information.

By Troy Montigney, Vice President, Ascensus

Automation has the power to change your life. No, I’m not talking about artificial intelligence (thankfully, that’s a conversation for another time and place) – rather, a time-tested behavioral trick: investing through payroll direct deposit.

Much like your employer might support your retirement and healthcare savings needs by pulling 401(k) and health savings account (HSA) contributions from your paycheck, you can consider taking the same approach to saving for education. 529 plan contributions for your loved ones can be made by direct deposit, all before your take-home pay is deposited into your checking account.

My experience

When I first started saving for education, I made an initial, one-time deposit and patted myself on the back. “I’m YEARS ahead of the game!” I thought. That momentary high soon gave way to doubts. When should I make my next contribution? Can I be doing more? How much is college really going to cost in 18 years?

By this point, I was used to directing my pay in multiple directions for various needs. Thankfully, my employer’s payroll process allowed yet another account to be added to my deposit instructions, and the 529 plan I use offered a smooth experience and clear information to help establish the link.

Over five years have passed, and I’ve never touched this piece of our financial puzzle again.

Tuning out the noise

Many of the people I’ve looked up to in my life subscribe to a “control what you can control” mindset. We’re all part of a complex global economy, and headlines of the day, especially those concerning our wealth and pocketbooks, can be distracting at best and panic-inducing at worst.

Amidst literal swings of markets, payroll direct deposit lets you control what you can control. Choose your education savings goal and fearlessly march towards it, without regard for everything else you might hear over dinner conversations or encounter in your Instagram feed.

Dollar-cost averaging with an assist from direct deposit

While there’s some debate about whether it’s better to make periodic, large lump-sum investments or smaller, recurring ones, I’m a fan of the latter because they help us overcome the mental blocks I just described.

By definition, investing at the regular interval of your paychecks means you will buy in when the market is near its all-time high, when it’s pulled back a bit, and everywhere in between. Over time, you can avoid the impulse to time the market strategically. Spoiler alert: this doesn’t always work out, and if you’re worried about timing your entry point, you’re more likely to try to time your exit as well.

Maximizing current state tax benefits

While the long-term, potential tax-free growth of 529s is their most impactful benefit, up-front tax incentives for contributions are made available to taxpayers in 37 states and the District of Columbia. In most cases, these are capped at a specific amount per taxpayer or each beneficiary for whom they are saving.

Making your 529 contributions via payroll direct deposit can let you carefully and gradually work towards maximizing current state tax benefits, instead of scrambling before a year-end or Tax Day deadline to “hit your limit.”

Our family’s contributions are designed in just this way: split evenly between our two children (since our home state’s incentive is per taxpayer rather than per account beneficiary) and totaling a little more than the state tax credit limit annually.

Direct deposit doesn’t require a large paycheck

In recent years, most 529 plans have lowered their minimum contributions to make saving for education a possibility for almost anybody. The most common minimums are $10 or $25, but many plans have no minimums for contributions made via payroll direct deposit or any contribution at all.

That’s all to say: you can do this without a ton of income to spare.

Make no mistake, it’s not always convenient to have another large chunk of my paycheck disappear. But as seasons of heightened spending come along, or unplanned expenses are confronted, we have taught ourselves to pull back elsewhere rather than sacrifice our commitment to saving for our kids’ education.

This feels empowering rather than restricting. In sticking to our plan and continuing to use payroll direct deposit, I trust that we are investing in a future with less worry and more hope (no matter what happens with AI)!

About the author

Troy Montigney is the proud father of 529 Day baby Sophie and her younger sister Molly. By day, he is Vice President of State Retirement Programs at Ascensus. Previously he served on its industry-leading 529 team, which helps over 8 million people save for education via 51 plans serviced across 31 states and the District of Columbia.

Please note: A plan of regular investment cannot assure a profit or protect against a loss in a declining market. This testimonial is not necessarily representative of the experience of other investors and is no guarantee of future performance or success.

As a kid, my exposure to pop culture was limited by the fact that I grew up in a rural area where our giant outdoor TV antenna picked up exactly one channel. Fortunately, that channel did deliver the Saturday morning goods by way of the Teenage Mutant Ninja Turtles and direct-to-kids advertising that was rampant through much of the late 80s and early 90s. 

My protective bubble burst in a blaze of glory in late middle school through the magic of…satellite TV [insert “mind blown” meme here]! Overnight, our household TV channel portfolio grew by nearly 19,900% from 1 to 200+ channels. It’s safe to say this was the highest-grossing investment my family will ever know (though certainly not the most rewarding one – more on that later). 

Ironically, with immediate access to countless new forms of content, I found myself drawn explicitly to the show that was literally about nothing. I mean, what’s the deal with satellite TV? I had hundreds of options, and I only wanted to watch Seinfeld reruns!

Believe it or not, despite the show’s reputation, there’s a lot one can learn from the four, arguably morally bankrupt, main characters, including why things like prepaid tuition plans might be a good choice for many families.

This was reinforced when I recently rewatched “The Stock Tip” episode, where George got a hot stock tip and talked Jerry into going in on a risky investment with him. Jerry, who was uncomfortable with market risk, agonized the entire episode as he saw the value of his holdings plummet every day until he couldn’t take it anymore and sold out at a significant loss. Sure enough, a few days later, the stock had recovered, gained exponentially, and made George a tidy profit, much to Jerry’s chagrin. 

The point that really hit home in that episode is that investment-based 529 plans, while an important source of long-term investment growth for many, are not the tool that every college saver is comfortable relying on exclusively. And that’s perfectly okay. Some families want to know they are building their college savings without the added stress of market swings. Others may be seeking a defined benefit with a known outcome. And yet others may want to diversify and not have all their eggs in one basket. 

This is where prepaid tuition plans come in. These unique and special products, only available in certain states, take much of the uncertainty out of the college savings picture. Designed to keep pace with rising tuition costs in a given state, savers in these plans not only have a hedge against long-term tuition inflation but can rest easy knowing that market timing won’t be a factor when needing to pay for college. And, despite common misperceptions, these plans often allow you to use your funds out of state and for various other higher education expenses beyond tuition, just like their investment-based 529 brethren. Keep in mind that prepaid benefits, when used for expenses beyond in-state tuition, can vary by plan. As with any financial product, it’s important to read the full disclosures before opening an account. 

Now, full disclosure here – as co-chair of CSPN’s Prepaid Tuition Committee and an administrator for a state that offered a prepaid tuition program as our sole 529 option for 20 years, I wouldn’t be very good at my job if I wasn’t trying to convince you how great prepaid plans are! But I can also personally attest to the power these products have. For my daughter, my wife and I participate in both of our state’s plans. We put our largest share of contributions into our prepaid account to lock in peace of mind and contribute additional funds to our investment-based 529 to boost our overall expected return.

Just like Seinfeld was the ideal choice among the many content options to help shape (warp?) my still-developing pre-teen mind, my family’s blended prepaid/investment strategy is the perfect balance for our college savings goals. As you consider your own education savings goals, a prepaid tuition plan may be worth a look if your state offers one, especially if you’re seeking that perfect peace of mind. In the immortal words of George’s dad, Frank Costanza: “Serenity Now!”

_____________

About the Author

Luke Minor is the Senior Director of Postsecondary Affordability at the Washington Student Achievement Council. In his role, he oversees Washington State’s Education Savings Plans (WA529), which include the GET Prepaid Tuition Program and WA529 Invest. 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 five-year-old, and young-at-heart geriatric dog. And yes, he still watches Seinfeld reruns from time-to-time. 

By Dave Dominick, Assistant Director of Marketing and Outreach for the Pennsylvania Treasury Department

February 18, 2025

List of “must haves” for a competitive benefits package.

1. Professional development. Check. 
2. Flexible work-life balance. Check.
3. On-site childcare. Check.
4. Pet-friendly office. Check.
5. 529 matching for my kids. *Crickets chirping*

That sound of silence is about to get loud. For years, 529 plans have been helping families steadily and strategically save and pay for education expenses. According to the College Savings Plans Network (CSPN), families had more than $508 billion tucked away in tax-advantaged 529 accounts as of June 2024. This money can help pay for a loved one to become anything from an electrician to a teacher, depending on their chosen career path. 

Though the amount in 529 plans has nearly doubled in the last decade, it is considerably less than the amount Americans have in retirement accounts. Data from the Investment Company Institute shows that retirement accounts hold more than $40 trillion. To put this into perspective, that’s roughly 7,700 times more than 529 plans. 

Outreach is Key

One of the main reasons people save more for retirement is because most companies offer various savings options to employees on day one as part of a comprehensive benefit package, many times including matching contributions. 

To make it easier to save for retirement, companies can offer 401(k) plans, individual retirement accounts (IRAs), deferred compensation plans, and more. Most often, employees set up these accounts as soon as they are hired and save steadily through automatic payroll deductions with each pay. By saving automatically, employees are less likely to miss a contribution. As the saying goes, “Slow and steady wins the race.” 

Unfortunately, according to a report by Statista, only 10 percent of companies nationally offer workplace payroll deductions for 529 education savings accounts. 

However, a growing number of employers are offering 529 plans as a voluntary benefit. Employees can pick a 529 plan and contribute using payroll deduction, and many state-sponsored 529 plans have outreach and education specialists to help both employers and employees navigate this process.  

State agencies that manage both 529 and unclaimed property programs can find it easier to connect with new businesses. Outreach teams can identify unclaimed property owed to a business and use that as a perfect reason to begin a conversation that may lead to a meaningful relationship and additional resources for employees.

Offering a Business Tax Credit

There are other beneficial reasons employers may begin offering 529 plan access in the workplace. At least eight states now have laws that provide tax credits to companies that match employee contributions to 529 plans. In Pennsylvania, the latest state to offer a business tax credit, employers can claim a 25 percent tax credit on matches to employee 529 (and ABLE) contributions of up to $500 per employee. The Pennsylvania Treasury Department’s outreach team has already formed relationships with statewide and regional chambers of commerce to help engage employers.

By promoting a state tax credit for 529 contribution matching and emphasizing improving employee benefits and workplace culture, employers can see the long-term economic and social impact their contributions can have on helping create a more educated workforce for local communities. 

An October 2024 article in the New York Times provided more examples of employers offering 529 plan matching contributions. 

Resources

A Commonwealth report noted that most employees were interested in saving in 529 plans, especially those from low—and moderate-income households. There has never been a better time to approach employers about this important opportunity. The Commonwealth report outlines these opportunities and offers suggestions and best practices for employers to use when implementing a workplace rollout of access to 529 plans. 

Many states also offer and promote Children’s Savings Account (CSA) programs like Pennsylvania’s Keystone Scholars, which provides a $100 investment for post-high school education for all babies born in Pennsylvania since 2019. Awareness of CSAs helps new parents understand the importance of saving early, starts them on their savings journey, and increases parental expectations for their child’s future.

What’s Next?

State 529 plan industry groups, like CSPN, remain engaged with lawmakers in Congress to enhance education savings accounts. Over the last ten years, 529 plans have expanded to include K-12 tuition expenses, apprenticeships, and student loan repayment as qualified expenses. 

This, in part, has spurred the popularity and growth of 529 plans nationwide. Other initiatives, such as incentives to open accounts (see 529 Day activities), matching employer contributions at the state level, and increasing access to technology to manage accounts, are steps in the right direction. 

Your company can contact your state’s 529 plan office to discuss potential outreach and learning opportunities. CSPN’s website maintains a search tool for 529 plans nationwide.   

About the author

Dave Dominick is the Assistant Director of Marketing and Outreach for the Pennsylvania Treasury Department’s Consumer Programs, which includes the Pennsylvania 529 College and Career Savings Program, Keystone Scholars, and the Pennsylvania ABLE Savings Program. He also co-chairs the ABLE Savings Plans Network’s Data and Benchmarking Committee.

By Dawn Hall, Executive Director of the IDeal – Idaho College Savings Program

January 28, 2025

One of the most impactful things I’ve learned since taking this job is that if a child has a college savings account with as little as $25 in it, they are up to 7 times more likely to go on to higher education and up to 7 times more likely to finish.*

We hear people say, “I can’t afford to save for their entire education, so why start.” Or “I want to save for education for my kids; I just haven’t started yet.”  Or “I don’t know if my kid will go to college.”

Here’s my response, “It’s easy to get started and costs less than most people think. You decide when and how much to contribute. It will support whatever path they choose, and you don’t have to do it alone!”

Most states offer a 529 state plan with tax benefits for contributions. The plans can be used nationwide at eligible colleges, universities, and vocational schools, as well as for registered apprenticeships and student loan repayment.

Follow these simple steps to get started, and remember, the earlier you start, the more time the fund has to grow. To find a plan, go HERE.

1. Enroll
2. Select your investment strategy
3. Set your contribution strategy
4. Request friends and family help
5. Monitor the account

1. Go to the website of the plan you want to enroll in. You will need about 15 minutes, your information, and basic information for the beneficiary, such as birthdate, social security number, address, and name.

2. Plans have flexible options that fit your needs and help available to assist you, covering a broad spectrum of investment options to suit varying comfort levels, time horizons, expectations, and personal circumstances.

3. You can contribute anytime or set recurring contributions. Setting up automatic contributions through a bank withdrawal or payroll deduction can help you stay consistent with your budget. Even small regular contributions can have a significant impact over time. Studies show employees save 75 percent more if they have a direct deposit option. (Source: ISS Market Intelligence 529 Industry Analysis May, 2019).

4. Most plans offer a gift code that links directly to your account so friends and family can give the gift of education for a birthday, holiday, special occasion, or even “just because.”

5. Many plans offer an app to help you monitor your contributions and account.

I started IDeal – Idaho College Savings Program funds for my two daughters when they were born. I wasn’t making a lot of money, but by taking it out of my check before I could spend it elsewhere, I was able to start saving. I chose the time horizon investment option and direct deposit – or set it and forget it. As I received pay increases, I increased my contributions. My oldest is using her funds now as a sophomore at Willamette University. My youngest plans to use hers for trade school training to become a welder after high school. I hope I have set them on a path that will keep them from having student loan debt after graduation and taught them the value of saving.

About the author:

Dawn Hall became the Executive Director of the
IDeal – Idaho College Savings Program in July. She has two B.A. degrees and an MPA from Boise State University.

* Source: https://openscholarship.wustl.edu/cgi/viewcontent.cgi?article=1425&context=csd_research

By Michelle Winner, Director of Marketing, Maryland 529

It seems like the holidays and family traditions go hand in hand. For the past 10 years, my husband and I have spent Christmas Eve watching Elf with our two daughters, and we enjoy a family bowling match with my father the day after Christmas. I’m not sure how these activities evolved into a yearly tradition, but they are always filled with so much joy and laughter that I can’t imagine spending either day doing anything else.

Another tradition that may not sound as fun as watching a movie or playing a game is discussing our financial goals for the upcoming new year. Can we afford to take a family vacation? Are we anticipating any major expenses – replacing our roof, purchasing a new car, etc.? What is the health of our emergency fund should there be an unexpected job loss? While most of this discussion is between my husband and me, one thing we make sure we do with our daughters is to review their 529 plan account balances. We started including them in this conversation when they were in middle school and started talking about their “dream” colleges. We explained how we were saving for their future education with a 529 plan, but if the cost of the college they wanted to attend exceeded the balance in their 529 plan, they would have to take out a loan. While it was a somewhat simplistic explanation at the time, it was enough to help them understand the basic concept that you can’t spend more than what you have without consequences. When it came time for them to start applying to colleges, knowing how much money they had in their accounts helped them decide which colleges they could attend without incurring student loan debt, a burden they now see many of their friends shouldering. 

So, as you spend the holidays engaging in your favorite family traditions, consider adding one more tradition: including your children in their education savings journey. Even if high school graduation may be years ahead for your children, it’s never too early to start teaching them the basics of fiscal responsibility. Not sure where to begin? Here are some resources to help get you started:

New to college savings? This article
includes expert insights from a T. Rowe Price thought leadership director that can help you build your college savings plan strategy.

Money Confident Kids is a great resource for helping middle school and high school students learn and understand the basics of saving, spending, and investing.

The Federal Deposit Insurance Commission (FDIC), the Consumer Financial Protection Bureau (CFPB), and the National Credit Union Administration (NCUA) provide different types of free financial education materials for pre-kindergarten through college students.

Wishing you a happy and fiscally healthy New Year!

About the author:

Michelle Winner is the Director of Marketing for Maryland 529, a division of the Maryland State Treasurer’s Office that oversees the Maryland College Investment Plan, the Maryland Prepaid College Trust, and Maryland ABLE. Michelle also serves as Co-Chair of the Communications Committee for the College Savings Plans Network.

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.