With costs of higher education rising and student debt posing a burden on many families, a 529 college savings plan is a unique gift option that will make a lasting, positive impact on the lives of your loved ones. Consider opening an account or making a gift contribution to an existing account with The Education Plan®—New Mexico’s 529 college savings plan.
According to CollegeBoard Trends in Higher Education 2021, the average cost for tuition and room and board at an out-of-state public university is approximately $40,000 per year. For those attending in-state public universities, the cost is over $27,000 per year. Whether in-state or out-of-state, these rising costs can create a barrier and keep students from receiving the higher education they desire; however, The Education Plan® 529 college savings plan offers an easy, tax-advantaged way to save for higher education.
“Whether planning for your children, grandchildren, or a loved one, a 529 savings plan is a meaningful gift that will last a lifetime,” said Carolyn Fittipaldi, Acting Executive Director, Education Trust Board of New Mexico, the state agency that administers The Education Plan®. “By gifting a college savings plan and adding to it as you’re able, you’re paving the way for a more successful future.”
The Education Plan® is easy to set up and can be started with as little as one dollar.
While regular contributions provide the biggest impact on account growth long-term, any contributions that fit into your budget will make a difference. Family and friends can also give a gift contribution to your 529 account through a one-time gift or a recurring contribution.
In addition to making a thoughtful holiday gift, contributions are tax-deductible from New Mexico state income taxes and grow tax-free.
There also is no tax when funds are used for qualified education expenses. The plan can be used to pay for traditional college, community college, professional school, or trade school tuition. It can also pay for other expenses including computers, software, books, room and board, and meal plans.
“Instead of buying toys or clothes, consider investing in a child or loved one’s future—or in your own,” added Fittipaldi. “It’s never too early or too late to start investing. Every little bit saved can help to cover education costs. This can open doors to future career opportunities and financial stability for the beneficiary.”
To learn more about the Education Plan®, visit TheEducationPlan.com.