CSPN News

  • Summer Break

    By: Hon. Michael L. Fitzgerald
    State Treasurer, State of Iowa
    June 15, 2015

    Just because your kids are on summer break doesn’t mean their college savings has to be as well. For many, summers are filled with carpooling to baseball games, backyard BBQs and trips to the pool.  Let your kids enjoy their time away from the classroom while continuing to bolster their college savings.

    •    If you haven’t done so already, consider using an automatic investment plan (AIP). Saving with AIP allows you to set up automatic contributions on a regular basis by connecting your financial institution account to your 529 plan. This allows you to make saving a part of your routine without taking time out of your day each month. If you already use AIP, consider increasing the amount you contribute.  Even a few extra dollars a month could mean big savings when it comes time to write that first college check. You and your kids may be taking a break this summer, but your account will not!

  • It’s Graduation Season Again

    By Paul Paeglis Executive Director, Ohio Tuition Trust Authority/CollegeAdvantage 529 June 8, 2015 Graduation season is the time of year when families and friends come together to celebrate accomplishments of […]

  • Cousin’s Legacy Lives on Through Investments in Children’s Futures

    By Ryan Betz
    Associate Director of Marketing & Communications with Washington State’s Guaranteed Education Tuition (GET) program
    June 1, 2015

    Fifteen years ago my cousin Michael passed away after a tragic airline accident. He was only 30 years old and had a bright future ahead of him. Over the years following my cousin’s death, my aunt and uncle searched for ways to honor Michael’s life. One of the ways they chose to recognize Michael’s contributions to the world was by establishing a 529 college savings account for both my daughter and my son. My aunt and uncle believed education was the one way Michael’s legacy could be carried on by giving my children the opportunity to follow their dreams and aspirations through a college education.

    My aunt and uncle’s choice to celebrate Michael’s life through a 529 plan contribution was not based on maximizing investment returns in order to make a lot of money; it was a much deeper and meaningful decision. They simply wanted to ensure all the amazing experiences that were afforded to Michael because of his education were passed along to the next generation of our family. In fact, I remember Michael’s college graduation pretty vividly since it was the first I had ever attended. I recall thinking at the time, how cool it was that he achieved such a high level of education. That memory was left engraved in my mind and was something I circled back to when I needed a little motivation with my own studies.

  • It’s 5/29, Are you Saving for College?

    Patricia Roberts
    Managing Director, AllianceBernstein L.P. & Chair, College Savings Plans Network Corporate Affiliates Committee
    May 26, 2015
    Across the country as the clock strikes 5:29 a.m. and p.m. each day, if you’re listening to the radio, you may hear a Public Service Announcement that begins by posing a timely and important question: “It’s 5:29, are you saving for college?” In an informative and encouraging manner, the PSA, playing on hundreds of stations across the country, seeks to educate listeners about what 529 college savings plans are and how these plans can play a valuable role in helping families prepare for higher education expenses.

  • National Conference Takeaway: Innovation Will Drive Savings Success

    Betty Lochner
    CSPN Chair and Director of Washington’s GET Program
    May 20, 2015

    Michelangelo once said “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” To me this quote defines my experience last week at CSPN’s annual conference. As 529 professionals we were inspired to continue to discover, share and create new ways to enhance the services and benefits of our college savings plans for American families.

  • Our First Teachers: Moms and Education

    A Mother’s Day Reflection

    Patricia Roberts
    Managing Director, AllianceBernstein L.P. and
    Chair, College Savings Plans Network Corporate AffiliatesBlog 80 photo
    May 8, 2015

    As I shared in a post at this time last year, the topic of education always seems to surface when I speak with adult children of all ages about the admiration they have for their mothers. I am reminded of all that we learn from our very first teachers and am inspired by the critical role women play in both the education and the educational pursuits of those they love.

  • Get your savings in full swing this spring

    Lucas Minor
    GET Marketing & Communications ManagerCSPN-Baseball-Quote
    May 4, 2015

    I always welcome the start of baseball season, as it’s a great reminder that good things are in store for the months ahead. It’s a chance for renewed optimism as we cheer on the home team (Go Mariners!) and hope that maybe ‘this’ will finally be their year. And accordingly, Mother Nature is showing signs of bright life: the sun starts showing itself again, flowers are in bloom and everything is turning green again! But what do baseball and the change in seasons have to do with college savings?

    Just as the start of the season involves a steep learning curve for a team, getting your college savings started is not always easy right out of the gate. You’ll experience some growing pains and it will take time to get a consistent game plan established. Despite these early road bumps, remember that this time of year is also the perfect opportunity for a fresh start – a chance to try out a new approach. If you stay committed and keep working hard, saving will continue to come more naturally, and your college savings plan will begin to blossom.

  • Statement from College Savings Plans Network on Senate Finance Committee Passage of College Savings Bill

    WASHINGTON, D.C. (April 30, 2015) – Yesterday, the Senate Finance Committee considered S. 335, the companion bill to H.R. 529, which was passed with a bipartisan vote by the House of Representatives in February. Introduced by Senator Charles Grassley (R-IA) and Bob Casey (D-PA), the Senate Finance Committee voted unanimously in favor of the bill 26-0.

    The legislation will make 529 plans more flexible by making computers an eligible education expense; allowing the redeposit of college refunds without negative tax implications in certain circumstances and updating outdated accounting rules.

    Betty Lochner, chair of the College Savings Plans Network (CSPN)—the nation’s leading objective source of information about Section 529 College Savings Plans and Prepaid Tuition Plans—issued the following statement:

  • Spring cleaning

    By Jim DiUlio
    Director of  Wisconsin’s 529 College Savings Program
    April 20, 2015window3

    A sure sign of spring from my youth was taking down the heavy wooden storm windows and putting up the screens at my grandmother’s house. She was traditional, insisting on

    vinegar and hot water as the only formula to get the glass sparkling clean. It was the same routine every year—the windows, followed by scrubbing the porch, then raking around the flower beds.

    Your financial household could also benefit from the spring cleaning routine, so here are some things to review every year.

     

    1. Ask yourself some questions. Has your life changed since last spring? Has your job or income changed, are there more or fewer children in your household, are you now a couple or now single, do you have responsibilities for aging parents? All of these are game-changers for budgets, savings, even the level of risk you take with your money.  Spring is a good time to review and make adjustments, plus you have your tax papers handy for reference.
    2. Look at your savings accounts. As you get older, are these investments in line with your current age?  The same concept applies for 529 accounts as children get closer to the college years.  You may have chosen investments when they were toddlers, but consider whether they should be less risky now as the withdrawals are only a few years away. Many state 529 plans offer age-based tracks; they automatically move to more conservative allocations with time, and are one thing less for you to monitor.
    3. Check the beneficiary designations on your pensions, insurances, 401(k) and IRA accounts. Looking at your beneficiaries for these accounts now is a much alternative to wishing later that you had made an update. Although you most likely won’t change the named beneficiary of your 529 accounts, you can name another adult as a contingent or successor owner to handle your 529 account if you become disabled or die. This can be especially important to with grandparent-owned accounts.
    4. Consolidate the smaller dollar accounts.  There may a birthday fund at the bank, a cookie jar with cash, or those rebate checks that will expire if you don’t cash them. College savings accounts usually accept both small and large lump sums, along with regular checkbook and payroll deductions. While you’re at it, increase those monthly contributions a bit—small amounts add up.
    5. Update your passwords. Sometimes a whiff of vinegar brings back good memories of those spring cleaning days many years ago. However, my grandparents never had to deal with passwords and computer hackers. So while you are doing your financial household spring ritual, update your passwords on your savings and investing accounts, including your 529s. Prepare a list and share with a trusted person, in the event you are incapacitated when those college expenses come due later.

  • Happy Tax Day!

    Tax Day

    Jamie Canup, Partner
    Hirschler Fleischer
    April 15, 2015

    Happy Tax Day?  Not something you typically hear on April 15th.  If you invest in a 529 Plan you can congratulate yourself for making a wise investment choice that also comes with multiple tax benefits.  529 Plans are among the most tax-efficient instruments available for someone to save for future higher education expenses — whether those expenses are for you, your children, or your grandchildren (or frankly, anyone else).

  • Why Not Pay Sale Prices for College?

    Nancy Farmer
    President, Private College 529 Plan
    April 6, 2015

    “How come anything you buy will go on sale next week?” – Erma Bombeck

    American humorist and columnist Erma Bombeck died before 529 plans became a common vehicle for families to save for college. But I think she would have approved of 529 prepaid tuition plans. They each offer college education in the future, at guaranteed prices.

    And unlike Erma’s wistful complaint, the 12 states and one private college organization that sponsor prepaid college tuition plans don’t make any secret of when you can buy their products on sale. In fact, they advertise trying to get more and more families to take advantage of the benefits.

    Why use a prepaid tuition plan?  Here are several reasons:

  • National Association of State Treasurers Conference Provides Opportunity to Celebrate & Advocate

    By Betty Lochner
    Chair of the College Savings Plans Network and Director of Washington’s Guaranteed Education Tuition (GET) Program
    April 1, 2015

    I read a blog recently that said the world is changed by your example, not by your opinion. This quote epitomizes my last week where I joined CSPN affiliate and state members in Washington D.C. for the National Association of State Treasurers (NAST) legislative conference.

    This year there were two sessions at the conference entirely devoted to 529 college savings plans. The first session included a panel of key congressional aids that have been involved in legislation surrounding enhancements to 529 plans, including the new ABLE legislation.