Growing up without a college savings plan in place for myself, there was no assurance I would get to attend the school of my choice, even if I was accepted. Part of this left me with an unsteady feeling that I hope to avoid with my children. It's driven me to want to start planning, and start it early. Growing up I watched my mom work tirelessly to return to school and struggle with debt from school loans.
May 29 is National 529 day and Florida Prepaid is trying to increase awareness about college savings and the Florida 529 Savings Plan. Student loan debt has reached $1 trillion nationally. Today, many graduates are facing the workforce strapped down with thousands of dollars in debt.
What is Florida Prepaid?
Florida Prepaid is the largest, longest running and most successful prepaid program in the nation and we are here to help Florida families understand the importance of investing in education and make it is easy to do so. Florida Prepaid offers two types of savings options: Prepaid Plans and 529 savings plans. There are five different types of Prepaid Plans, and they can only be purchased during Open Enrollment (which usually runs from Oct.-Feb.).Every college savings plan opened with us represents an investment in a child’s future, and in our state.
What is a 529 Savings Plan?
529 savings
plans are named after section 529 of the Internal Revenue Code 26 U.S.C. § 529
and are designed to encourage saving for future higher education expenses of a
designated beneficiary. Many states offer 529 savings plan options, including
Florida Prepaid.
Money
from a 529 plan can be used for tuition, fees, books, supplies and equipment
required for study at any accredited college, university or vocational school
in the United States and at some foreign universities. The money can also be
used for room and board, as long as the fund beneficiary is at least a
half-time student. Off-campus housing costs are covered up to the allowance for
room and board that the college includes in its cost of attendance for federal
financial-aid purposes. Qualified education expenses do not include student
loans and student loan interest. There is legislation currently going through
Congress that will expand the qualified expenses.
The Florida 529 Savings Plan
The
Florida 529 Savings Plan can be started at anytime and only requires a $25
initial deposit to open. Even if you can’t save for your child’s entire college
education, starting something is always better than doing nothing. The funds in
a Florida 529 Savings Plan can be used for any qualified higher educational
expense, including tuition, room & board, textbooks, graduate school and
much more. This gives you extreme flexibility to use the funds as you see fit,
for whatever your child may need. And should those needs change during his/her
college years, individuals are free to adjust as well.
The
Florida 529 Savings Plan offers you the ultimate in flexibility. Simply choose
from the investment options, then contribute as much and as often as you’d like
to suit your budget and goals. Each investment option, such as our popular
age-based option that automatically allocates contributions based on the age of
the child, is independently run by professional investment managers. There are
11 investment options let you invest in any way you feel comfortable. From more
aggressive to more conservative options, and with age-based and fully
customized approaches, you have as much control as you want over how much you
invest and where it’s invested. And as the years go by, you’re free to change
contribution amounts and how they are allocated at any time.
Click HERE to start planning for your child's future today!
Essentially yours,
Erika
