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College Choice


Back-to-School and Back-to-Saving… for College



This year as you are preparing for the upcoming school year by buying backpacks, books, and school supplies, you need to think about the long-term future. Now is the time to invest in your child's future.
September 01, 2007
"Should I be saving more?" "Are there better ways to save than a regular savings account?" "How do others find a way to save when they don't earn any more than I do?" 

Many parents often ask these questions. In addition, the questions become even more urgent when they begin to think about sending their children to college. Then the question becomes, "How can I ever save enough to send my child to college?"

Estimates predict that it will cost nearly $170,000 to send today's newborn to an Indiana public university in 2025. For those who prefer a private institution, costs could soar to over $345,000. The truth is, this year tens of thousands of Indiana college graduates left campus carrying the heavy burden of debt. College graduates should walk off campus proudly carrying newly gained knowledge and the excitement of the possibilities ahead but the truth is, too many exit knowing their college loans will affect them for years to come. 

However, there is hope. This year as you are preparing for the upcoming school year by buying backpacks, books, and school supplies, you need to think about the long-term future. Now is the time to invest in your child's future.

Indiana has the perfect way to save! With the most tax-advantaged plan in the nation, Indiana's CollegeChoice 529 Investment Plan® will not only pave the road to your child's college education but will save you money even as you invest.

Contributions to a CollegeChoice account grow tax-free and when used for qualified education expenses are exempt from federal and state taxes. In addition, this year, Hoosiers who contribute to a CollegeChoice 529 Investment account can receive a 20 percent tax credit, up to $1000. For example, if you contribute $5000 to a CollegeChoice account, you will receive a credit of $1000 off your state income tax bill. That is a 20 percent direct return on your investment.  

The plan also allows for a greater return on investment by keeping your fees to a minimum. In fact, Indiana residents who directly enroll in the CollegeChoice age-based investment option pay no fees for sales commissions. As a further incentive to begin saving for college, Hoosiers investing in the CollegeChoice Plan are not charged a state authority fee that non-residents typically pay when investing in other state's plans. Finally, the annual maintenance fee is waived for those who contribute to their account through payroll deduction or automatic debit from a checking or savings account.

So instead of just saving, begin investing. The returns are far greater and there are tremendous tax advantages available when you open an Indiana CollegeChoice account.

As chair of the Indiana Education Savings Authority, I want to continue to make saving for college a priority for all Hoosier families. I encourage you to ask an investment professional about Indiana's CollegeChoice 529 Investment Plan® or visit our Website. As you begin this year's back-to-school activities, make investing for the future a new priority. Proper planning, consistently contributing to a 529 account, and gaining the tax benefits afforded Hoosiers with the plan, will put college within reach.

Richard Mourdock is the Treasurer for the state of Indiana.
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