Path2College aims to get 10,000 more Georgia kids in college

Special to the Journal

 

Georgia families now have even more reason to think about college

savings this year—in fact, 10,000 Reasons.  Today, the Path2College

529 Plan launched its 10,000 Reasons to Save Sweepstakes,

which will award one family who is already saving with Path2College and one

non-account holder with $10,529 each for his or her college savings.

 Additionally, the two winners’ schools will each receive $10,529.

  

 

“Every year we have several programs designed to get people thinking about

saving for college,” said Mitch Seabaugh, director of the Path2College 529 Plan.

“This sweepstakes is the biggest one we’ve ever done, and we hope it will

encourage those who haven’t yet started to save for their children to do so.”

 

Seabaugh said that the primary focus is to get more families saving for college

so students are financially prepared for higher education, “but several of our

sweepstakes, like this one, also help prepare students academically by

contributing to a local school or an area library.”

 

“Establishing a strong financial foundation for children helps ensure their

education can continue after high school graduation,” said State School

Superintendent Dr. John Barge. “We want every child in Georgia to have the

opportunity to achieve their dreams, and in today’s competitive, global job

market, education is one of the most important tools we can give them.”

Path2College has set a goal of

adding at least 10,000 new accounts during the sweepstakes to the accounts that

are already established (as of 2/1/13).

 

To reach this goal, Seabaugh has been and will continue to travel across the

state talking with civic organizations, schools and other groups to inform them

about Georgia’s Path2College 529 Plan, and remind families about the importance

of financial planning.  The Path2College Plan is also holding

several additional sweepstakes and programs throughout the year, including a

Newborn Sweepstakes for babies born in 2013, a Summer Reading Program

Sweepstakes in partnership with the Georgia Public Library Service and a

coloring sweepstakes in September to celebrate College Savings Month.  

 

“If 10,000 more Georgia families open an account, that’s 10,000 more children

who will have a head start toward achieving their dream when they graduate from

high school,” said Seabaugh.

 

Seabaugh said that every dollar saved today will help offset education expenses

tomorrow, and while most families may not be able to save the full amount of a

college education, they can still set realistic goals to help meet  the

costs of higher education.  

 

“We’ve seen the cost of education on the rise across the country for years,”

said Seabaugh.  “Many people are overwhelmed by the cost, but saving small

amounts over time really does make a difference and a Path2College savings plan

can help them do that.”  

 

The Path2College

529 Plan allows families to contribute as little as $25 at a time to a

child’s account, and as a Georgia resident their contributions have a state tax

advantage.   Earnings in a Path2College 529 Plan are both

federal and state tax deferred and withdrawals for qualified education expenses

are federally and state tax free.

 

To read the official rules and to enter the 10,000 Reasons to Save

Sweepstakes, visit www.Path2College529.com.  Entries must be received online by August 15, 2013.  The

sweepstakes is open all Path2College 529 Plan account owners.

 Non-Path2College 529 Plan account owners must be Georgia residents age 21

years and older who are a parent, legal guardian or grandparent of a child age

18 or under who is also a Georgia resident and a) attending a Georgia school or

b) a homeschooled child, or c) a child not yet old enough to be eligible to be

enrolled in school.   No purchase necessary.  Void where

prohibited.

 

For more information about the Path2College 529 Plan, please visit www.path2college529.com/.

 

About the Path2College 529 Plan

The Path2College 529 Plan helps families prepare for the future

costs of college tuition and other qualified expenses, such as fees, books, and

certain room and board costs for colleges in Georgia and nationwide.  The

plan is easy to use and understand, with no sign-up, maintenance or third-party

sales fees – just a low annual asset-based management fee, and an account can

be opened online with as little as $25.   

 

Any earnings in the Path2College 529 Plan are federal and Georgia income

tax-deferred and withdrawals for qualified higher education are federal and

Georgia income tax free.  In addition, the State of Georgia offers a state

income tax deduction on contributions of up to $2,000 per year, per

beneficiary.  (Transfers from another 529 plan are not eligible for the

deduction. Recapture provisions apply.)  Account assets can be used at

virtually any college or university in the country.  The plan offers seven

investment options and participants can arrange for automatic contributions to

their accounts to be drawn directly from a bank account or made through payroll

deduction with participating employers.

 

The Path2College

529 Plan is managed by TIAA-CREF Tuition Financing, Inc., which is part

of the TIAA-CREF group of companies.  The Path2College 529 Plan has

more than $1.2 billion in assets under management and more than 137,000

accounts as of February 1, 2013.

In mid-May, Georgia’s Path2College 529 Plan, received a

5-cap, out of 5-cap rating, after maintaining a 4.5 cap rating for over eight

years from SavingforCollege.com. The SavingforCollege.com cap rating is based

on the comparison of investment options, fees and expenses, resident state tax

benefits and other features as of 12/1/11.  Ratings are not based on a

fixed formula and are not indicative of future results.

 Savingforcollege.com releases its various performance ranking on a

quarterly basis.

 

Consider the investment objectives,

risks, charges and expenses before investing in the Path2College 529 Plan.

Visit www.path2college529.com/ for a Disclosure Booklet containing this

and other information. Please read it carefully.

 

Before investing in a 529 plan, you should consider whether the state you or

your beneficiary reside in or have taxable income in has a 529 plan that offers

favorable state income tax or other benefits that are only available if you

invest in that state’s 529 plan.

 

We are required to notify you that the tax information contained herein is not

intended to be used, and cannot be used, by any taxpayer for the purpose of

avoiding tax penalties. Taxpayers should seek advice based on their own

particular circumstances from an independent tax advisor.  Non-qualified

withdrawals may be subject to federal and state taxes and the additional

federal 10% tax.

 

Account value for the Investment Options is not guaranteed and will fluctuate

based upon a number of factors, including general market conditions.

 

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