With Americans’ outstanding student loan debt obligations now exceeding $1 trillion, Rep. Marguerite Quinn (R-Bucks) today urged Bucks County parents to learn about the benefits of opening or contributing to a tax-advantaged Pennsylvania 529 Guaranteed Savings Plan (GSP) before Aug. 31 to take advantage of last school year’s lower prices.Credit rates will increase Sept. 1 to correspond with the tuition increases set by colleges and universities.
“While it is never too early or too late to start saving for college, it is wise to start before Aug. 31 to maximize your college savings dollars,” Quinn said.
To take advantage of lower credit rates, contributions sent by mail must be postmarked by Aug. 31. Online contributions must be made by 11:59 p.m. EDT on Aug. 31 at PA529.com.
To encourage more families to start saving for college, the PA 529 GSP is offering free enrollment – a $50 savings – for all new accounts opened before Sept. 30 at PA529.com. Use code “QUINN” when prompted. Families will have a chance to win one of five $529 college savings accounts by registering at PA529.com by Sept. 30.
The PA 529 GSP is designed to help your savings grow to meet the future cost of education. The plan lets an account owner save for tomorrow’s college expenses at today’s plan rates – without worrying about the ups and downs of the stock market.
Pennsylvania also offers a second 529 plan, the PA 529 Investment Plan (IP), in which returns are based on financial market performance. The PA 529 IP features low fees and more than a dozen conservative and aggressive investment options from The Vanguard Group, one of the nation’s largest financial services companies. There is no enrollment fee for the PA 529 IP.
Contributions to PA 529 plans are deductible from Pennsylvania income taxes, grow tax free, and, when used for qualified educational expenses, are federal and state tax exempt. Both plans provide flexibility to pay for higher education expenses at most higher education institutions across the country.
“The PA 529 College Savings Program is a great way for families to save for their child’s higher education,” Quinn said. “I encourage families to consider enrolling for free and start saving today to keep pace with the rising cost of college. Contributions to an individual child’s account can be made by anyone.”
To open or contribute to an account, visit www.PA529.com or call 1-800-440-4000.
The Pennsylvania 529 College Savings Program sponsors two plans – the PA 529 Guaranteed Savings Plan (GSP) and the PA 529 Investment Plan (IP). The guarantee of the PA 529 Guaranteed Savings Plan is an obligation of the GSP Fund, not the Commonwealth of Pennsylvania or any state agency. Before investing in either plan, please carefully read that plan’s disclosure statement (available at www.PA529.com or by calling 1-800-440-4000) to learn more about that plan, including investment objectives, risks, fees, and tax implications.