With a 529 Plan, It’s Never Too Early (or Too Late) to Start Saving for College

Average tuition at a Maryland public university has increased by just over 70 percent during the past decade, and family income and student financial aid have not kept up with these increasing costs. This gap is forcing students to borrow more money for their education than ever before.

Many families find that the easiest and most affordable way to begin saving for college is to invest in a 529 savings plan. Savings can be used around the country at any eligible college or university. Plus, all 529 plans offer federal tax-deferred growth and tax-free earnings when funds are used for eligible college expenses.

For Maryland taxpayers, there are two 529 plans offered by The College Savings Plans of Maryland: Prepaid College Trust and the College Investment Plan. These are the only 529 plans that are eligible for a Maryland state income deduction on contributions for each account holder of up to $2,500 per account or beneficiary, depending on the plan.

Along with convenient ways to save for college, perhaps the best benefit of participating in a 529 plan is peace of mind for parents and students, knowing that a college education is within their reach.

For more details about the Maryland 529 Plans, visit CollegeSavingsMd.org.

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