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PA Treasurer Polls Parents On College Savings

dollarPennsylvania Treasurer Rob Mc Cord says a recent parents’ poll commissioned by his office found that all of the parents polled expect their children to have some kind of post-secondary education, but one in four had not saved any money to pay the tuition. He says his office has two guaranteed plans that give parents big tax breaks on money they save for their children’s education, and that’s not all.

“You get huge earnings advantages by using a 529 program as opposed to just putting it into savings’ bonds or a savings account.  You can get an absolute guarantee against tuition inflation, which is what the Guaranteed Savings Plan provides.  We had a 118 percent tuition inflation over a decade at Penn State, but those who bought those tuition credits a decade in advance through Pennsylvania’s Guaranteed Savings Plan got that decade-old price, so they got a heck of a return on their investment.”

McCord Says the Pennsylvania 529 Guaranteed Savings Plan is tied to the rate of tuition inflation, so if you have an eight-year-old child and you start saving now through the plan, the rate you will pay when the child is 18 is today’s rate, not the rate ten years from now.  For more information, go to www.pa529.com on the internet.

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