My college days seem like yesterday. Only, they were almost 20 years ago. As a teacher, I also went on to get two Masters. So, I have college loans. My husband has college loans too. We are still paying for them. I do have friends who do not have loans and this is a goal that I would like to have for my three savvy ladies.
One way I am doing this is by contributing to the NY 529 Direct College Savings Plans that I have for each of them.
A few weeks ago, Momtrends invited me to the Intrepid Sea, Air & Space Museum Complex to learn all about the NY 529 Direct College Savings Plan.
The biggest take away that I received is “Every dollar saved is one less dollar borrowed.” That truly resonates with me.
Did you know that public college has gone up over 20% in the last 5 years?
Did you know that one year at NYU costs $75,000?
Although these facts can seem truly overwhelming, I keep thinking “Every dollar saved is one less dollar borrowed.”
So, why the NY 529 Direct College Savings Plan?
- If you have money saved in a NY 529 Direct College Savings Plan,6% of the money is considered when looking at financial aid. This is compared to 20% of the money that would be in a child’s bank account.
- Tax savings. When I go to my accountant, each year, he asks to see how much I have contributed. This is a great perk now for later. Your earnings grow federally tax-deferred, qualified withdrawals are tax-free,* and some states (like New York) have other tax benefits as well.
- You can use it to pay for anything that’s considered a qualified higher-education expense, including tuition; books; supplies; equipment; expenses for the purchase of certain computer equipment, software, and computer-related services; and certain room and board expenses.
Another great feature of is that your 529 account can be used to pay for qualified higher-education expenses at any eligible educational Institution, including:
- Post secondary trade and vocational schools.
- 2- and 4- year colleges.
- Postgraduate programs.
It doesn’t take a lot to start an account either. You can visit www.nysaves.org and start an account with as little as $25.
With the NY 529 Direct College Savings Plan, friends and family can contribute to your child’s 529 account. You can learn more about Ugift here.
There are so many great reasons why you should open a NY 529 Direct College Savings Plan. By visiting www.nysaves.org, you can find out all the facts and start one today.