New Year’s Resolution: Save for College in 2014, Borrow Less in Future

Secretary of Higher Education Jose Garcia

STATE News:

  • NM Higher Education Secretary encourages parents to invest in children’s future through state 529 college savings plan

SANTA FE – As a new year begins, Secretary of Higher Education Jose Garcia is encouraging parents to make their New Year’s resolution count – by opening a state 529 college savings plan and investing in their kids’ future.

“So many students have to grapple with crushing debt from their student loans. But it doesn’t have to be that way,” Garcia said. “As a parent, you can save your children a whole lot of problems by investing in their future. And it doesn’t have to burden your family. With our 529 college savings plan, putting a little away each month will go a long way. If parents want their New Year’s resolution to make a real difference, they should resolve to save for college in 2014 and borrow less in the future.”

With as little as $25 each month, parents can begin building a foundation for their children’s higher education that can be used toward any accredited college — public or private — anywhere in the United States or abroad. The Education Plan can be used to save for college costs not covered by scholarships, grants or other forms of financial aid.

This is also a good time to start a 529 college savings plan because New Mexico residents can deduct contributions to The Education Plan dollar for dollar from their state taxable income. Money invested in The Education Plan may grow faster than comparable taxable accounts because the money has the potential to grow tax free for the life of the account. 

The Education Plan is sponsored by the Education Trust Board of New Mexico and managed by OppenheimerFunds, a well-respected financial services firm. The plan’s tax advantages, affordable costs, flexibility and diversified investment options make it easy to save for college costs. Best of all, anyone can contribute to the fund anytime, making it a great way for family and friends to help.

“There’s no better time than today to start saving for your children’s college costs,” said Kevin Deiters, executive director of the Education Trust Board of New Mexico. “If you haven’t started saving for your children’s college education, it’s not too late. The worst thing you can do is nothing.”

For more information, visit https://www.theeducationplan.com.

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