Vermont Business Magazine Vermont Student Assistance Corp is joining a 27-state effort to teach families the power of saving for education and training after high school. The national campaign, launching today, dubbed “For Their Future” is led by College Savings Plan Network, part of the National Association of State Treasurers, with the goal to reduce college debt for new generations.
“Every dollar saved is a dollar you don’t have to borrow,” said Vermont State Treasurer Beth Pearce, who is the immediate past president of NAST. “Investing in education is the most important financial advantage you can provide for future generations. “On March 4 we start our march forth, joining together to set our kids and grandkids on a better path with 529s.”
A 529 plan is an education savings plan designed to help families set aside funds for future college costs, with tax advantages to help make saving easier. The plans are named after Section 529 of the Internal Revenue Code, which created these types of savings plans in 1996. Most 529 plans are operated by state agencies. Vermont’s 529 plan, the Vermont Higher Education Investment Plan (VHEIP), is overseen by VSAC.
Easy to start, with as little as $25, the Vermont 529 plan offers an added incentive: It’s the only college savings account that qualifies for a Vermont state income tax credit on annual contributions for college or training after high school.
“Saving, even a little at a time, can make a big difference down the road,” said Scott Giles, VSAC president and CEO. “With the cost of education continuing to increase, the key is to start saving early and regularly. For example, a family that begins setting aside $50 a month when their child is born can accrue over $21,000 by the time the child turns 18.
“That pretty much wipes out most of the average student loan debt held by Vermonters today,” Giles said.
The 27-state alliance, which includes Washington DC, involves 46 partners, including state treasurers, financial service firms and other state officials. The public-private partnership was formed to increase awareness of 529s, the state-led college savings plans designed to help families save for higher education and lessen reliance on student loans.
Nearly 70 percent of Americans don’t know what a 529 plan is, and only about 10 percent of families are actively saving.
This new partnership will be amplified throughout 2019 and into 2020 under an agreement with Fred Rogers Productions, the company founded by Mister Rogers, the beloved advocate of children’s education. The campaign’s spots will air before and after episodes of Daniel Tiger’s Neighborhood. The series is one of the highest co-viewed children’s shows between parents and young children and is based on Mister Rogers’ Neighborhood.
About VHEIP
The Vermont Higher Education Investment Plan, a 529 college savings plan, was established in 1999 and is Vermont’s only state-sponsored 529 plan and as such the only 529 plan eligible for the Vermont income tax credit on contributions. The plan has over $350 million in assets with over 20,000 accounts. In 2018, more than $31 million was used to pay for Vermonters education after high school. VHEIP is administered by the Vermont Student Assistance Corp. and managed by Intuition College Savings Solutions. For more information about setting up a VHEIP account, visit www.vheip.org or call the customer service center at (800) 637-5860.
About VSAC – Changing Lives through Education and Training since 1965
Vermont Student Assistance Corporation is a public, nonprofit agency established by the Vermont Legislature in 1965 to help Vermonters achieve their education and training goals after high school. VSAC serves students and their families in grades 7-12, as well as adults returning to school, by providing education and career planning services, need-based grants, scholarships and education loans. VSAC has awarded more than $600 million in grants and scholarships for Vermont students, and also administers Vermont’s 529 college savings plan. Share your VSAC story by email to [email protected] or submit a video to YouTube. Find us at www.vsac.org or check in on Facebook and Twitter. #changing lives
Source: WINOOSKI (March 4, 2019) – Vermont Student Assistance Corp