FOR IMMEDIATE RELEASE
September is College Savings Month
Walker: It’s never too late to start saving
(STATEHOUSE) – The average total annual cost for a four-year public college or university during the 2006-2007 academic year was $16,357 according to the College Board. Similar costs for private colleges and universities averaged $33,301, while U.S. Census Bureau statistics from 2000 show Americans with a four-year college degree earn nearly twice the annual salary of those with a high school diploma. Over the course of a lifetime, those extra four years of school can add up to more than $1 million in additional earnings.
For those reasons, Sen. Greg Walker (R- Columbus), is encouraging Hoosiers to recognize September as College Savings Month to raise awareness of the importance of planning for the expenses of a post-secondary education.
“Statistics prove the value of higher education,” Walker said. “However, that education comes at a cost, so parents and students need to be prepared and plan accordingly. Even saving $50 a month at birth, with interest, can add up to approximately $20,000 by the time a child is 17.”
One great way to save for post-secondary educational expenses, according to Walker, is through the CollegeChoice 529 Investment Plan. The plan allows you to save for college and withdraw funds for qualified education expenses (tuition, books, room and board), at any eligible post-secondary institution, without tax liability. The maximum, tax-free contribution per person, per year is $12,000. The maximum lifetime contribution is $298,770 per beneficiary.
“Parents, you cannot get an education on behalf of your child, but join me in doing the next best thing, which is investing in your child’s future, through higher education,” Walker said. “I highly encourage all Hoosiers to take advantage of the CollegeChoice 529 plan, especially since taxpayers making contributions are now eligible for a 20 percent state tax credit, up to a maximum of $1,000.”
The new tax credit took effect Jan. 1 of this year. For more information about college savings, the CollegeChoice 529 Savings plans, and the Indiana state tax credit, go to https://www.collegechoiceplan.com/ccp/ccp.jsp
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