HARRISBURG, PA – Pennsylvania Treasurer Robin L. Wiessmann joined more than 40 states across the U.S. in kicking off National College Savings Month and reminded Pennsylvanians that saving for college is possible in any economy.
“There’s a lot of bad news out there about the current economy and we realize that it can make saving for a child’s higher education seem daunting,” Wiessmann said. “It’s critical that we show families the simple steps they can take to save in any economic situation so that we can provide more options for our children’s future.”
This month, the Pennsylvania Treasury Department will feature quick tips to help families save on its Web site, www.patreasury.org.
The Treasury will also use this month to educate Pennsylvanians about the options available through the state’s nowU 529 college savings program through a “station domination” advertising campaign in Philadelphia SEPTA stations, and promotional partnerships with several children’s museums including: expERIEnce Children’s Museum, Erie; The Crayola Factory, Easton; Children’s Discovery Workshop, Williamsport; Hands-on House, Children’s Museum, Lancaster; and The Children’s Museum, Bloomsburg. Even the Philadelphia Phillies and Pittsburgh Pirates are pitching in, together offering a combined $50,000 in college savings account scholarships to a few lucky fans through nowU contests throughout September.
The National Association of State Treasurers and the College Savings Plan Network created National College Savings Month in 2003 to ensure each citizen’s opportunity to a post-secondary education. States across the U.S. take this opportunity every year to raise awareness of the rising costs of tuition, and remind citizens of the tax incentives offered through state 529 college savings programs.
“As a member of the National Association of State Treasurers, I can tell you that we are closely monitoring the issues in the college savings loan market, not just for Pennsylvania, but for all states,” Wiessmann said. “While we’re working on a viable solution, we need to educate families about all of the college savings options out there so that each family is afforded the opportunity to create a diversified plan and achieve its college savings goals.
The smallest monthly contribution into a nowU 529 college savings account can make a huge difference over a period of time,” said Treasurer Wiessmann. “Every dollar saved for college today is one less your student will have to pay back down the road, with interest, on a student loan.”
Wiessmann shared the two options for college savings that families have with nowU: the Pennsylvania 529 Guaranteed Savings Plan (GSP) and the Pennsylvania 529 Investment Plan.
In the GSP, your savings are protected and grow to keep up with the rising cost of college tuition. In the Investment Plan, your savings are invested in mutual funds and/or a money market fund managed by Valley Forge-based Vanguard, one of the world’s largest financial services companies.
As of September 9, 2008 there were 136,910 nowU accounts.
Both plans provide important tax advantages, such as a state income tax deduction on contributions to a nowU account, tax-deferred growth on earnings, and tax-free withdrawals when funds are used for qualified educational expenses. For more information on the nowU Pennsylvania’s 529 College Savings Program go to www.nowU529.com or call 1-800-440-4000.
The Pennsylvania Treasury Department, under the leadership of Treasurer Robin L. Wiessmann, is a leader in changing the way treasuries do business. The Department and its employees are accountable for safeguarding the financial assets of all Pennsylvanians, serving as custodians, investors and disbursers of the Commonwealth’s funds. Treasury also helps Pennsylvanians achieve financial success through a variety of programs and services like the Unclaimed Property program, the nowU College Savings Program, the KeystoneHELP low-interest loan program,and the INVEST program for local governments and nonprofits. For more information about Treasurer Wiessmann and the Pennsylvania Treasury Department, visit www.patreasury.org.
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