HARRISBURG, PA — To encourage families to save for future educational expenses, Pennsylvania State Treasurer Stacy Garrity has announced a special promotion linked to the upcoming 529 Day. Starting today, May 1, this year’s initiative aims to highlight the benefits of the PA 529 College and Career Savings Program, offering significant awards that could cover a full year of tuition at a Pennsylvania community college.
During this month-long celebration, culminating on May 29, known as 529 Day, families are being incentivized to start saving early for post-secondary education expenses. According to Garrity, the promotion is not just about immediate financial rewards but fostering a culture of proactive savings. “Saving early and often will make a big difference down the road when a child chooses their career path,” she stated, underscoring the long-term benefits of accumulating education funds without the burden of future debt.
The promotion includes three top awards of $5,529 each and six regional awards of $2,529. To be eligible for two of the top awards and the regional awards, families must open a new PA 529 Guaranteed Savings Plan (GSP) account between May 1 and May 31, 2024, with a minimum contribution of $10. Additionally, families with existing PA 529 GSP accounts can enter to win a third top award by contributing at least $10 during the promotional period.
This initiative comes at a time when the cost of higher education is a growing concern for many families across the nation. The PA 529 program, in existence for over three decades, helps ease this burden by offering tax advantages and a diverse range of uses for the funds, including tuition, fees, books, and room and board. Importantly, funds saved in a PA 529 account do not affect a student’s eligibility for state financial aid in Pennsylvania.
A unique feature of the PA 529 GSP is its ability to lock in today’s tuition rates for future use, shielding families from the unpredictable rises in college tuition costs. This forward-looking strategy means that dollars saved today will have the same purchasing power when the time comes for students to enroll in college, regardless of tuition inflation over the years.
For families with newborns or children adopted on or after January 1, 2019, Pennsylvania offers an additional jumpstart through the Keystone Scholars program, which automatically deposits $100 into a Keystone Scholars account for every baby born or adopted by Pennsylvania families. This initiative, funded without taxpayer dollars, is designed to encourage families to augment this initial deposit by opening and contributing to a PA 529 account.
The Treasury’s 529 Day promotion represents an innovative approach to tackling the challenge of college affordability. By offering tangible incentives for families to begin saving early, Pennsylvania is taking concrete steps towards ensuring that higher education remains within reach for future generations. This effort not only highlights the importance of financial planning for education but also demonstrates the state’s commitment to making post-secondary education more accessible and affordable for all its residents.
Visit pa529.com to learn more about saving with PA 529 and pa529.com/529day for official 529 Day promotion rules.
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