Consumer Tip: College Bound?

FYI. In case you haven't noticed lately, college tuition costs keep rising. So does the cost of text books and everything associated with eduation.

Some fun facts from the College Savings Plan Network:
- 529 savings plans can be used at virtually any accredited college or university in the U.S. and at some foreign schools.
- Earnings from 529 plans are not taxed when used to pay for eligible college expenses.
- The account owner of a 529 plan maintains control over the use of the account.
- Your 529 plan contribution qualifies for the $12,000 annual gift tax exclusion.
- 529 plans come in two varieties: college savings plans and prepaid tuition plans.
- 529 plans can be used to pay for tuition, room and board, fees, books, supplies, and equipment required for enrollment.
- Some states offer an income tax deduction based on your contributions into a 529 plan.
- There are no income limitations on a person's ability to contribute to an account.
- Most need-based financial aid comes in the form of student loans.
- Over the past decade, college expenses at public universities have risen nearly 51%. Where will that be in another 10 years when Junior is approaching his senior year in HS?
- High school graduates are more likely to go on to college today than in the past. Sixty-three percent of the year 2000 high school graduates had enrolled in college by the following fall, up from 52 percent of the class of 1970. (US Bureau of Labor Statistics)
- College graduates age 25 and over earn nearly twice as much as workers who stopped with a high school diploma.
- Among men, median earnings of four-year college graduates were 19 percent higher than median earnings of high school graduates in 1975. The gap grew to 37 percent in 1985, 56 percent in 1995, and 63 percent in 2005.
- Among women, median earnings of four-year college graduates were 37 percent higher than median earnings of high school graduates in 1975. The gap grew to 47 percent in 1985, and 71 percent in 1995. It was 70 percent in 2005.
- Minimum contributions can be as little as $15.
- In most states, you can contribute as much as $300,000 or more per beneficiary.
- More than $105 billion has been invested in 529 plans across the country.
- More than 9 million 529 accounts have been opened.

What if Junior just got out of diapers and you're finding the cost of daycare, after-school day, and Elmo toys is still eating up anything you have to even start an initial deposit on a 529 plan? You're in luck today people. There are several programs out there that won't cost you a dime, yet will help build a pool of money for Junior's future tuition, or contribute to a 529 plan.

Consider these:
Upromise (www.upromise.com), which offers members rebates that are automatically deposited into a pool that you can use for future tuition or have deposited directly into your 529 plan. Friends and family members can join your network and all they have to do to contribute is continue their regular shopping patterns. Well worth your time. Wife and I enrolled in this about five years ago.
BabyMint (www.babymint.com) is another one that offers rebates for online purchases and gift certificates. Checks or rebates can even be directed to Junior's savings account, mutual fund account or 529 plan. Family and friends can help on this one too.
EdExpress (www.edexpress.com) is another option that lets family and friends contribute.