By Lauren Shipley
Public relations and marketing manager, College Savings Plans of Maryland
October 6, 2014

I hear one frightening theme as I travel in October: “I have been meaning to start a 529 plan for a while.” I believe many families understand the need to save for college, but often misunderstand the true benefit of saving.
It may sound bewitching, but each family has the power to cut their child’s future college costs in half. The power lies in saving now versus borrowing later. To cover $25,000 in college costs, a family could put away $92 a month into a 529 plan for 15 years—a total investment of $17,000.
1. A family choosing to borrow the $25,000 instead would have to repay roughly $35,000 (or approximately $300 a month over the next ten years)
2. Their total debt would be double the amount spent by the family who saved. Ghoulish, right?!