May 23, 2013
UA College Savings Plan encourages Alaska families to start saving for higher education with a 529 plan on “529 College Savings Day”
Fairbanks, AK.– On May 29, the University of Alaska College Savings Plan joins the College Savings Plans Network ( CSPN ) and state savings plans around the nation in celebrating “529 College Savings Day” in an effort to increase awareness among Alaska families about the importance of saving for their children’s higher education expenses.
“Higher education is one of the best investments a person can make in a lifetime,” said Lael Oldmixon, director of the UA College Savings Plan. “I encourage Alaska families to take some time on 529 College Savings Day to discuss their college savings goals as a family and learn how a college savings plan can help make those goals a reality.” She added that the Plan is sharing some fun activities and information through its social media this month to celebrate.
The UA College Savings Plan is a top ranked 529 plan, a state-sponsored program designed to help families save while offering potential tax benefits. Savings have the potential to grow faster in a 529 plan because potential earnings are tax-deferred, and are tax-free if the account is used for qualified higher education expenses at an eligible school. The Plan offers a variety of investment options managed by T. Rowe Price, a recognized leader in no load mutual funds. The most widely recognized benefit for Alaskans is the ACT portfolio, which offers the UA Tuition-Value Guarantee and is a balanced, low-cost option. This portfolio can also be a good choice if the child is likely to attend the University of Alaska ; however, its monetary value can used at virtually any college or vocational school in the country.
Alaskans can invest in the Plan directly or through the permanent fund dividend (PFD). Also, in 2013, everyone who elects to automatically contribute half of their PFD to the Plan is entered into a drawing for a chance to win a $25,000 scholarship account or one of four, $2,500 scholarship accounts. Alaskans who have not yet designated half of their PFD can still do so by filing the “UA College Savings Plan” form through the state’s Permanent Fund Dividend Division’s website http://www.pfd.state.ak.us/Forms/index.
To learn more about the UA College Savings Plan, visit http://www.uacollegesavings.com. Resources and tools that families can use to compare 529 plans and make informed decisions about saving for college are also available at CSPN’s website, www.CollegeSavings.org .